Wednesday, October 19, 2011

Commercial real estate and business abroad

Commercial property abroad interested potential buyers not to idle curiosity, but as an essential component for business - this maxim is obvious and does not require separate explanation. Future lucky owners of office and hotel space meters outside the homeland (as opposed to investing in housing), one of the priority criteria for the attractiveness of overseas real estate still believe not only and not the location in the resort area and a great view of the sea, how many opportunities for commercial activity in this country. How loyal to foreign nationals law, transparency of schemes and tax burden - all these factors can be decisive in selecting the State to purchase commercial real estate. Let us try to consider the basic model of administrative behavior as an indicator of profitability of such investments by the example of today's popular trends in this area - real estate in Montenegro, Switzerland, United Arab Emirates. SWITZERLAND Alpine state, which has become synonymous with stability and prosperity, built on solid business level of the national idea. Even during the world wars and global crises are guaranteed security of property of foreign owners - compare with the same U.S., where this case there is a special Enemy Act, of the same name which appears absolutely unfriendly to foreign assets. If the residential real estate transactions is considerably limited (due to the so-called "law of the Lex Friedrich" the majority of the cantons generally closed to foreigners, and the resale housing are allowed to stand not less than 10 years after the purchase), the commercial real estate in Switzerland is much more open market - especially after 1997, when they were introduced significant amendments to existing legislation. The greatest interest in this segment are storage and office space, the total area which experts estimate more than 60 million square meters Often the sale of operating businesses offer, simply tenants renegotiate the contract with the new owner of the premises. The cost of commercial buildings in Switzerland strongly depends on the region, ranging between 600 thousand to $ 15 million. The most attractive for doing business are large cities - Zurich, Geneva, Berne, in which concentrated financial centers world-known companies (eg, Cartier or Michelin), as well as the headquarters of international organizations. Although the purchase of commercial real estate in Switzerland is allowed for both individuals and legal entities, the best option, analysts believe the deal involving offshore companies, which allows to observe confidentiality and minimize taxes. And maintaining an active business, creating jobs and contributing to the strengthening of the economy, we consider only positive - and this is understandable. MONTENEGRO recently appeared (2006) on the world map southern European country has demonstrated excellent investment start, though commercial real estate in Montenegro as a developed market segment is still quite weak. For example, a hotel fund is more a branch of the residential sector, where most of the occupied private homes, rent (apartment hotels), and occupancy is pronounced seasonal pattern. Office space for the most part are located in apartment buildings - although it is worth noting the growing interest in building a modern business centers (eg, in Podgorica and Herceg Novi). The warehouse sector rarely positioned independently, as a small investment for the proposed business area (usually a "warehouse" local car dealers realize barns at retail outlets). Traditionally, this segment of the commercial real estate market is developing with some time lag (3-5 years) compared with the others. Yet, despite all these difficulties the initial stage of formation, Montenegro the undisputed leader in investment attractiveness in many roles. The reason is competent policy and a favorable tax climate. Registration of the company is not legal and administrative means, with a small minimum capital - thanks to these and other factors Montenegro immediately fell in RBC-rating of the best countries for business. UAE's ambitious Arab projects could not remain indifferent investors. The highest building Burj Dubai the world or man-made island took their toll: the rich from around the world started feverishly buying up local real estate. It has become possible since 2002 in Dubai, after the commissioning of a special decree of Sheikh al-Maktoum - that is, Start a relatively recent, as in Montenegro. But what a difference! UAE came to the "top trades", complete with all segments of the market to the eyeballs. Particularly attractive to foreigners is the hotel business - with a light hand of Donald Trump. You can entrust their care management company, gaining an annual regular income. Flatter countrymen the fact that at the next island complex will be The World and Russian "corners" - "Orenburg" and "Rostov". In general, Dubai - the "city of peace", the indigenous people make up about 10% of the population of the remaining 90% of the absolute majority - office workers of international companies. No strikes and drunkenness, low crime rate - which is to say, the UAE is a haven for business! A nice bonus is the freedom from taxes in the so-called «free zones» and get along with ownership of real estate 3-year "resident visa", which allows commercial activities. It is no coincidence in the UN ranking UNICTAD, which defines the global list of countries most attractive for investment, the UAE took place 17, including beating and one of the oldest players in this market - Switzerland, with which we began our review

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