2020 was a tough pill to swallow for Europe’s real estate markets as some segments were forced into extremely disruptive lockdowns and others were given development incentives.
The knock-on effects of the coronavirus – widespread panic, quarantine, falling oil prices, and weakening oil-dependent currencies like the Russian ruble – are hitting the real estate market hard.
Many of our clients at Tranio are individuals with budgets starting from €100,000, who want to invest in property abroad. While skimming the market, it may seem like this amount is not enough to buy a decent income-generating property in Europe in locations where quality commercial spaces go for no less than €5 million, while small retail facilities can fetch anywhere between €3-5 million.
There’s more potential to make money in the country’s real estate than most people think. The majority of Europe’s real estate markets are overheated but Greece is one of the few countries where property is still relatively cheap.
The volume of commercial property transactions concluded in 2017 has amounted to $698b. According to JLL, transactions volume of the global real estate market for the first three quarters of 2018 increased 7% year-on-year to $507b.
Tranio managing partner George Kachmazov discusses how the portrait of a Russian-speaking foreign real estate investor has changed over the past eight years.
Tranio has been working with overseas real estate for more than eight years. Over the past three years, the company has been focussed on development projects, primarily in Germany. Good investment projects are not easy to find in the central European country: there are not enough projects to meet investment demand, and local professional developers can afford to be picky with whom they choose to work.
Investors often ask for our help in finding a 10–30 rooms hotel managed by an established operator under a long-term contract abroad. However, they do not plan on relocating and participating in the management of the hotel but want to receive a guaranteed income.
Tranio.com explores the new trend dominating the German real estate market.