1. International Commercial Markets
2. Sustainability vs. Saving Cost - Which one is the company really trying to do?
3. Resort Resident Ownership
International markets are becoming a little more appealing now that the economy has become a little less volatile, i said a little. The focal point of international real estate is centered around China. Right now they are having a boom in the industry in which some say is a bubble, others not. Both sides have strong points to base their opinion. Some statistics that side with the market on the cusp of busting are that in 2009 there was a 12.6% GDP growth, in which was the strongest growth since the 1990's. Further, the housing sector is the main role player for that growth. The only way that China can keep the bubble from bursting is having liquidity and available financing. Time will tell if they actually have both. Those that think the market is showing growth within its own limits believe China's real estate growth will not turn turmoil like we have seen before. Many say that the bubble will not burst due to China's government regulation and their lower debt compared to its western counterparts.
Iraq is another country that is showing signs of growth in both residential and commercial real estate. Recently the largest construction project has broken ground in post Saddam Iraq. The project will cost $238 million and will house 3500 residential apartments, a five star hotel, an office tower, and an upscale shopping mall. Iraq is in major need of new housing for its citizens and has been for some time. The government has spoken out about them backing investors to create these new complexes but have not put their words into action. They have stated that in the next 5 years as oil royalties increase substantially they will be able to fund many more programs and thus increase investors interest in Iraq.
Another topic of discussion was whether companies that are trying to become more sustainable or green are really environmentally friendly or are they just trying to cut cost. I have a real life example to explain. There was a hotel that decided to put a meter in each room that measured the energy used. To go along with this they would offer guest who had the least amount of energy used for a week a couple nights free stay. Because of this program the hotel saved tons of money on utility and energy bills each month. Well, a few months later the hotel took off the meter because it was not compatible with their video on demand. When asked why the change they answered saying that they were making more money off the video on demand than the amount of money saved on the utility and energy bills. After I heard this story it was hard for me to believe that many of the major corporations and even small businesses are really green thinkers. In my opinion sustainability is just a way to improve their public relations while cutting costs. They could care less about the Ozone layer for the time being.
The last topic that I will talk about is how certain hotel/resort companies are allowing people to buy property that is located within the resort. 4 seasons allow people to either be actually owners or apart of their resort club. 4 seasons has multiple locations across the world where you can pretty much buy your own hotel room that you can visit or allow others to at your consent. The other option is to become a part of their club and have access to certain resorts around the world and stay their for months at a time. They are kind of like time shares but they last much longer than a week or two. It is possible to live in 3 or 4 different parts of the world in a year if you live style permits so. At Disney Land they are selling actually houses that you can buy that are located in its own community near the park. I would have never thought that a amusement park would sell houses. I believe they start at around a million so they are targeted for the wealthy that have kids of a younger age.
The whole idea of hotels and amusement park selling property is the start of a new market. As the economy becomes stronger I can only imagine other resorts or highly distinguished theme parks will try to enter this market. It would be very unlikely that the competitors of 4 Seasons and Disney Land would let them be the only ones pursuing this new and savvy idea.
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