India: Return of ‘Big Fat’ Weddings Drives Hotel Demand
Hoteliers in India are rejoicing as demand for hotel-based weddings increases and occupancies soar.
With traditional Indian wedding celebrations lasting anywhere between one and five days or longer, the return of wedding business after pandemic slowdowns is seen as a positive sign for Indian hotels. Those weddings were “a significant contributor” to the industry’s performance bounce-back of 2022, said Mandeep Lamba, a South Asia regional president at business consulting firm HVS Anarock.
France: Luxury Retailers Battle for Real Estate
Luxury retailers including LVMH and Kering are engaged in a fight for Paris real estate, actively acquiring and leasing properties in places like Avenue Montaigne during the past year.
LVMH, owner of brands including Louis Vuitton, bought three prestigious addresses during 2022 for a total of €900m, and Kering’s leaders acquired a former Canadian embassy building on the luxury-oriented Montaigne for more than €860m. “They have a totally different vision than the average investor,” said Christian Nehmé, head of retail services investment and leasing at brokerage Savills.
Canada: Tesla Lithium Deal Could Intensify Quebec Mining Town Housing Shortage
Though surrounded by endless expanses of land, northern mining towns in Quebec are running out of permissible space to build much-needed housing and other property types required for growing cities.
It’s a problem expected to intensify as the region faces an influx of anticipated workers from a major new contract with U.S. manufacturer Tesla and an increase in mining for materials used to make batteries for electric vehicles. Tesla announced a deal last month to buy spodumene concentrate, a source of lithium and important raw material needed for electric vehicle batteries, from the Sayona Mine 560 kilometers northwest of Montreal.
Germany: Apple Expanding Munich Software Operations
Apple has been given the green light to buy a 7,000-square-meter site in Munich, Germany, by the local government, as the computer and iPhone maker looks to expand operations in its largest European hub for software development.
The U.S.-based tech giant is planning to create 28,000 square meters of floor space, after the finance committee of the Bavarian state approved the sale of the site at Seidlstrasse 15-19, which belonged to the state. Apple already uses the neighboring "Karl" building with 30,000 square meters, where it employs 2,000 people.
UK: Property Price Drop Slows But Not at Bottom Yet
The fall in UK commercial property prices is nearing its end game, but the bottom has not quite been reached, according to brokerage Savills.
The brokerage said January’s yields are a very mixed story, with downward pressure on parts of the retail category, stability in logistics and softening in prime office yields. The average prime yield softened to 5.68%, its highest level since 2008, meaning average prime yields have moved up 77 basis points since January last year.
US: Residents Flocking to Florida Send Rent and Home Prices Soaring
More people moved to Florida last year than any other state, helping to make the Sunshine State No. 1 in the country for fastest population growth for the first time in 65 years while fueling higher home prices and rents.
Florida’s population rose 1.9% between 2021 and 2022, topping all states for the first time since 1957, according to a report from the National Association of Realtors citing U.S. Census data. Domestic net migration in Florida reached 318,855 in 2022, nearly 100,000 more people than the 230,961 residents who moved to second-place Texas.
This report was compiled from CoStar’s international news publications in the United States, United Kingdom, Canada, France and Germany.