Pick of the bunch: W/E 10th January 2025

In this week's market update, we’re excited to share a selection of our latest opportunities across each of our disciplines, alongside global market insights for real estate professionals. Stay tuned for valuable trends and the latest recruitment strategies to navigate the evolving landscape in real estate. We aim to provide you with the tools and information you need to stay ahead in an ever-changing industry.

Residential Real Estate

第一太平戴维斯 forecasts that 2025 will see positive house price growth across the UK, with an average increase of 4%, driven by decreased mortgage costs and improved buyer confidence. The London market is expected to continue outperforming, particularly due to the demand for properties near key employment hubs, while regions like the South West and East of England will experience slower growth. However, the prime housing market, especially in central London, may lag due to tax changes and additional stamp duties, with modest price declines anticipated. Rents are set to rise by 4%, driven by ongoing supply shortages, although affordability pressures may ease in London with slower growth. Transaction volumes are expected to increase, with first-time buyers likely to lead the way in early 2025, while cash buyers' share of the market is expected to decrease as more mortgaged buyers return.

In response to increasing forest fire risks, new regulations in France now require property sellers and landlords to inform potential buyers and tenants about their obligation to clear garden undergrowth. This rule applies to both owned and rental properties and must be included in property listings as soon as they are publicised. Failure to do so could result in fines of up to €5,000. The law, aimed at reducing the risk of fatal fires, applies in five southern regions and mandates the clearing of undergrowth around buildings to prevent fire hazards. Listings must include a link to the Géorisques - Accueil website, where the fire risk and local undergrowth clearance rules are detailed. Additionally, from January 2025, this information must be incorporated into sales and rental contracts.

The Australian Taxation Office (ATO) has expanded its foreign resident capital gains withholding (FRCGW) regime, now requiring all Australian residents selling property to obtain a clearance certificate. This change, which came into effect on January 1, 2025, mandates that the certificate be provided to the buyer at settlement or before. Previously, only foreign property owners and Australian residents selling homes valued at $750,000 or more were subject to this requirement. The update aims to simplify tax collection and support the ATO in gathering taxes from non-residents selling property. If the buyer does not receive the certificate, they must withhold 15% of the sale price, up from 12%, and pay it directly to the ATO. The rule applies to residential, commercial, and vacant land. Brokers are advised to remind clients to apply for the certificate as soon as they decide to sell, as delays can take up to 28 business days, which could result in the seller having to pay the tax upfront.

Contact our Residential Team: Michael Woda, Mitchell Dring, Bradley Hellier, Michael Cartmill, Ethan Lewis

Property Management

Starting April 3, holiday homeowners in Spain will face new restrictions on rental properties as the country introduces stringent regulations. Property owners wishing to operate holiday lets in residential areas must now obtain approval from local residents, with at least 60 percent voting in favour. This change is part of an amendment to Spain's Ley de Propiedad Horizontal (Law of Horizontal Property) introduced on January 1, which impacts both mainland Spain and its islands. The new regulations do not affect properties that already have rental licences. The move follows widespread protests across Spain against the rise of short-term rentals, which locals claim are driving up house prices and forcing residents out of their communities. In response to these concerns, the Spanish government has enacted this legislation, aiming to control the growth of holiday lets, especially those associated with Airbnb -style rentals.

The Saudi Arabia Property Management Market is projected to experience robust growth, with a compound annual growth rate (CAGR) of 7.82% through 2029. The market is driven by various opportunities across commercial, residential, and industrial segments. The research covers both qualitative and quantitative aspects, focusing on key players such as Prudential Property Management , AlAndalus Property Company , 世邦魏理仕 , Colliers International , and 戴德梁行 , among others. The study highlights market dynamics, including supply and demand, technological innovations, and competitive landscape. It also features key developments such as strategic partnerships, R&D, and new product launches.

Contact: Rose Lock, Emma Bradshaw

Business Support

Estates Gazette (Estates Gazette), a historic 166-year-old publication in the real estate sector, is set to be saved from closure as Mark Allen Group (MAG) enters exclusive discussions to acquire the brand. The acquisition follows an announcement by its current owner, RELX , that it would withdraw all EG products and services from the market by 2025. The deal, reportedly valued at ￡2 million, includes EG Magazine, EG Events, and EG Jobs assets. Mark Allen Group, a family-run company with a strong track record in publishing, plans to revitalize the real estate-focused magazine and ensure its continued relevance in the industry. Some of EG’s current staff may also be offered roles at MAG.

Greece has introduced a one-year ban on new short-term rentals in Athens, effective from January 1, 2025, as part of efforts to address the national housing crisis. The ban affects several districts, including Kolonaki and Exarchia, following rapid growth in short-term rentals, which by August 2024 had surpassed one million units, outpacing hotel accommodations. Property owners with more than two rental properties must register as professionals and comply with regulations, while a tax-break incentive encourages owners to switch to long-term rentals. The Greek government aims to balance the economic benefits of tourism with the growing housing shortage and rising rents, with further measures possible if needed.

Contact: Anuradha Deb, Rose Lock

What’s your recruitment priority for 2025? ??

1. Improving candidate experience (43%)
2. Building diverse teams (29%)
3. Hiring niche property skills (14%)
4. Finding top talent faster (14%)

Our recent poll highlights key recruitment priorities for 2025, with two major takeaways: the need to elevate the candidate experience (43%) and the importance of building diverse teams (29%). These insights reflect a shift toward prioritizing inclusivity and personalization in hiring strategies. Meanwhile, a focus on niche skills (14%) and faster talent acquisition (14%) underscores the continued demand for efficiency and specialisation in recruitment.

At GKR, we're committed to helping businesses achieve these goals with tailored, forward-thinking solutions. Contact our team to discuss further!

Built Environment

Significant changes to New York's environmental conservation law, which took effect on January 1, have increased the regulated freshwater wetlands by one million acres. This expansion will effectively double the current wetland area under the state's NYS Department of Environmental Conservation (DEC) oversight by 2028. While environmental groups welcome the move to protect biodiversity, many landowners are concerned about potential restrictions on their property rights, fearing reduced property values. Under the new regulations, DEC’s authority now extends beyond previously designated wetlands, and official wetland maps are now merely informational. This means landowners must now request DEC reviews before carrying out any projects, leading to confusion and frustration, as the process will likely add time and costs to developments and leave unclear what qualifies as a regulated wetland.

In North Carolina, the General Assembly passed Senate Bill 382, overriding former Governor Roy Cooper's veto, which focused on hurricane recovery and executive powers, while also reinforcing property rights protections against local government overreach. The amendment now requires local zoning changes that reduce land uses or density to gain written consent from property owners. This provides more predictability for homeowners, businesses, and developers, particularly in addressing housing affordability and promoting business growth. The law addresses issues such as non-consensual down-zoning, ensuring that zoning changes that reduce residential density or restrict land uses now require property owners' consent. This shift aims to balance development needs with landowner rights, though challenges around zoning for industrial or rural areas remain, requiring creative solutions like compensation or consent-based models.

Despite efforts to implement Vietnam's 2024 Land Law, several barriers hinder its full effectiveness, including the slow issuance of implementation guidelines, flawed land price mechanisms, and complications in recognising land use rights. Issues such as overlapping regulations, inconsistent land use planning, and difficulties in land clearance, compensation, and resettlement impede project progress. Localities also struggle with monitoring land use, leading to wasted resources and misuse. To overcome these challenges, experts call for synchronised legal documents, greater land price transparency, a fair compensation system, and improved land data management through technology, ensuring the law can effectively contribute to socio-economic development and protect citizens' rights.

Contact: Lee Riley , Peter Wallis , Julian Murray

Commercial Real Estate

UK commercial property recorded a strong performance in December 2024, achieving a total return of 1.1%, the highest monthly return of the year, driven by a 0.6% increase in capital values. Overall, the UK commercial property sector delivered a total return of 7.7% in 2024, exceeding returns from the previous two years and surpassing the long-term average of 7.2% since 2000. Positive growth was seen across all sectors, with retail capital values rising by 0.7%, office capital values increasing by 0.3%, and industrial capital values seeing the highest rise of 0.9%. The industrial sector also had the highest total return for December and 2024, with a 9.7% return for the year. 世邦魏理仕 ’s Head of UK Research, Jennet Siebrits , noted that the market is now at a turning point, with positive momentum expected to continue, particularly in retail, office, and industrial sectors, as investor sentiment strengthens in 2025.

According to the latest research from Lismore Real Estate Advisors , 2025 is poised to offer significant opportunities for the UK real estate market, despite ongoing challenges. With ￡406m traded in Q4 2024, a 6% increase from the previous year, investor sentiment is improving, with 88% of respondents seeing potential in the year ahead. Key growth areas include industrial, living, and retail warehousing, particularly in Scotland's logistics and multi-let industrial markets along the M8/M74 corridors. Edinburgh’s central business district is also seeing strong demand for prime office space. Investors are focusing on income-generating sectors, with cautious optimism around stabilised pricing and rental growth, particularly in high-street retail and prime industrial. The Build to Rent sector, along with long-let, inflation-linked assets, are also drawing interest, setting the stage for a recovery phase as the year progresses.

Malaysia is swiftly becoming a leading destination for data centres in Asia and globally, with significant investments from tech giants like 谷歌 , 英伟达 , and 微软 . The country's strategic position, particularly in Johor Bahru, has been a key factor in attracting these investments, transforming Malaysia's digital infrastructure. The government has introduced a comprehensive legal framework with incentives, including tax exemptions and flexible capital sourcing, to encourage this growth. However, foreign companies must navigate a complex regulatory environment that includes investment restrictions, land approvals, and compliance with data protection laws. Legal experts highlight challenges, including ownership limits under the Communications and Multimedia Act, land acquisition requirements, and environmental concerns. New guidelines, such as the Data Centre Planning Guidelines, aim to standardise and streamline the development process while addressing sustainability.

Contact: Lee Riley

Investment, Finance & Accountancy

On January 6, the Ministry of the Interior and Safety in South Korea announced amendments to the enforcement decree of the local government property and goods management law, set to be enforced on January 7. The changes aim to support balanced regional development and address local extinction by improving how local government property is used and adjusting price standards. Local governments will now be able to sell stocks or shared properties to special purpose companies (SPCs) through private contracts, encouraging private investment in regional revitalisation, particularly in areas at risk of depopulation. Additionally, closed school properties can be transferred using officially announced land values or appraisals instead of the original acquisition price. The new regulations also simplify property exchanges between local and central governments, allowing a single appraisal value for such transactions, which will streamline the process and reduce costs for both state and local authorities

Institutional investments in Bengaluru's residential real estate sector saw a remarkable 46% year-on-year increase in 2024, reaching $1.1 billion, according to Colliers . This surge highlights growing investor confidence in the city's housing market, supported by strong demand and economic stability. While the office segment also experienced growth, the residential market stands out as a key driver of real estate investment in the region. As Bengaluru continues to attract institutional capital, the city's residential real estate is poised for further growth, offering promising opportunities for investors looking to capitalise on the sector's momentum.

The Dutch housing market is set for a sharp rise in 2025, with both property prices and rental rates increasing significantly. The cost of buying a home is expected to rise by 7.5%, bringing the average price to around €520,000. This will further strain affordability, as potential buyers will need a gross annual income of at least €106,000, which only 36% of households earn. In the rental sector, private sector rents will rise by a maximum of 4.1%, while mid-range rental prices could increase by up to 7.7%, making the housing market even more challenging. Government measures, such as phasing out mortgage tax relief and improving the rental market, may be considered to alleviate the pressures, but with housing shortages and wage increases driving costs up, the outlook for 2025 is one of heightened affordability concerns.

Contact: Lee Riley

In partnership with Druce:

Step into the New Year with an exciting opportunity to join @Druce , a name synonymous with luxury real estate since 1822. As Druce continues to expand across London and beyond, they’ve partnered exclusively with GKR International - Real Estate Talent Specialists to secure the finest talent in the industry.

Ready to elevate your career with one of the most reputable names in luxury real estate? Contact us today to explore the opportunities waiting for you at Druce.

?? Email: [email protected]

?? Website: www.gkrinternational.com/clients/druce-careers

?? Contact: Lee Riley, Grant Kaveney

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