Greece
Recovering European real estate markets set to be magnet for investors in 2015
Berlin is expected to be the top European real estate investment market in 2015, followed by Dublin, Madrid, Hamburg and Athens. Recovering markets like Dublin, Madrid and Athens which were hit by the economic downturn are regarded as being fertile grounds for property investors, according to the latest annual emerging trends report from the Urban Land Institute and PwC. The report points out that competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets. It highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid, up 16 position, Athens up 23 positions, Birmingham up 14 positions, Amsterdam up 17 positions and Lisbon up 17 positions. Berlin has moved up the rankings from last year, knocking Munich off the top spot for investment prospects in 2015. Historically dominated by domestic buyers, Berlin’s investment climate has now changed as international investors pour capital into the city, the report says. The city is described as a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector. Ranked again in second place, Dublin has had another strong year in which investors have jostled for opportunities. There was strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak. Madrid has shot up the rankings for investment prospects and many overseas investors are targeting the city. But whether Spain offers solid, long term business prospects is hotly debated among opportunistic investors, the report points out. Hamburg has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals, the report explains. International investors are flooding into Hamburg, accounting for half of the €2.4 billion of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving. Athens is the biggest mover on the list this year, up 23 places to number five. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention, the report says. Although Europe’s hardest hit economy remains fragile, a few trail blazing investors are moving in to take advantage of pre-rebound opportunities. The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. Some 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead… Continue reading
A property overseas still proving popular among British buyers
Buying property overseas is proving more popular this year than it was in 2013 although there is evidence of growth levelling off during the third quarter, according to new research. Spain, Portugal and France remain the most popular countries for British people to buy an overseas property, with Italy and Turkey the ones to watch, says the latest quarterly report from the Overseas Guides Company. The firm found that between January and September 2014, there was a 17% increase in enquiries compared to the same period last year, rising from 29,299 to 34,287. For the third quarter of 2014, enquiries were up by 4.1% year on year, from 10,518 to 10,957 in the third quarter of 2013. According to Angelos Koutsoudes, head of Overseas Guides Company, after a bullish first half of the year, there was a cooling off of enquiries during the third quarter compared to the previous two years, when the third quarter has always outperformed the first two quarters. The months of April to June continue to be the most popular months for would be homebuyers to view and complete on overseas properties, the firm has also found. Looking ahead, continued growth is expected in the key markets, with mortgage rates in the Eurozone remaining at historic lows and sterling likely to maintain a comparatively strong value against the euro. There is also a sentiment that the bargain prices of homes in popular parts of Spain, France and Portugal won't last forever, with signs that hotspots are already seeing slight price rises. The recent Overseas Guides Company reader’s survey showed that Spain, France and Portugal are the most popular countries for those considering buying property abroad and with those readers who already have a second property. Spain is still by far the most popular country, generating 2,710 enquiries in the third quarter, compared to 2,494 enquiries in the third quarter of 2013. Things are really looking up for Spain, both in terms of the property market and the economy as a whole. The International Monetary Fund recently announced that the southern European countries will lead the rest of the European Union in terms of economic growth over the next year and the economy is expected to grow at 1.3% in 2014 and continue by 1.7% in 2015. France remains a firm favourite in second place with 2,575 enquiries. Not only have house prices across the country remained stable over the last year, with average prices even falling in some areas, but France is also now offering interest-only mortgages to non-French residents. Star performers in the third quarter in terms of growth were Italy up 12.7%, Greece up 52% and Turkey up 8.5% in terms of enquiries compared to the previous quarter. Continue reading
Extension Of Moratorium On Acquisition Of Farmland By Foreigners As Impossible As Inefficient
22 October 2013 | 02:03 | FOCUS News Agency Home / European Union Sofia. Protesters in front of the Agriculture Ministry insisted for an extension of the ban on the acquisition of farmland by foreigners. This is also the “solution” to the problem that Bulgarian politicians came up with, even though it is as impossible as inefficient, the Sega daily comments. Other Eastern European countries agreed such moratoriums at their EU accession. The motive was that the price of agricultural land was very low there and foreigners could easily “snatch it from under the nose” of the needy local citizens. However, prices in Bulgaria are still low. The average price per decare is €440 in Bulgaria compared to €1,430 in Italy and €2,930 in the Netherlands. Weeks prior to the end of the moratorium the Agriculture Ministry sent a letter to the European Commission (EC) asking for an extension. The EC promised to answer within a month. Its response is, however, clear in advance – according to Bulgaria’s EU membership treaty it must lift the ban in 2014. The EC will also probably remind Bulgaria of the report it sent in 2010 containing recommendations for safeguard measures it could undertake. They are no different from what other EU member states did. For example, Spain has limited foreign stakes in the land belonging to one village to 15%. Greece introduced restrictions for the acquisition of farmland in border regions, Sega daily comments further. The Sega daily also reported that the EU has turned down a request by Romania to extend the ban on the sale of farmland to foreigners, quoting ITAR-TASS. The moratorium on the sale of farmland to foreign physical persons is virtually formal, as they can always register as juridical persons, the Duma daily comments. According to most experts the expiration of the ban will not produce a considerable effect as since Bulgaria’s EU accession foreigners received the right to buy land under the condition of setting up a joint-stock company with capital of BGN 2. Foreign investments in agricultural land in Bulgaria amount to below 0.2% for the past seven years since its EU entry, according to data from the latest report of the World Bank, as cited by the Institute for Market Economics. Experts note the reason behind the scepticism of foreign investors is the confusion with land management in Bulgaria. Continue reading
