The best European cities for property investments in 2017
Most property market players concur that with respect to successful investment, location is key. Tranio.com has analysed
For investors whose primary goal is to earn capital
For those who wish to make
Our study revealed that in 2017 these strategies are expected to bear fruit in eight European cities: Bucharest, Madrid, Barcelona, Sofia, Dublin, Bratislava, Lisbon and Warsaw.
That said, Bucharest has not yet proven to be a favorite among international investors.
According to our estimates, Madrid and Barcelona will be the hottest markets in 2017.
As a whole,
According to Idealista.com, a Spanish real estate site, property prices
The prices of property in Barcelona began to sink in 2007, reaching their nadir in 2013. In Q3 2016, a sq. m. in the city costed an average
For those who prefer property in a lower price bracket, Sofia is an excellent choice. Prices have plummeted by an average of 20.1% in recent years –
Prices for residential property in Dublin also decreased significantly in recent years. In 2016, property values were an average of 18% lower than in 2008. However, recovery began in 2013, and prices have risen by about 32% since then. There is still potential for growth. According to global cost of living database Numbeo, flats in central Dublin sell at an average price
Moreover, the markets of Bratislava and Lisbon, where in 2016 the prices were 7.8% and 7% lower than in 2008 respectively, also have growth potential: both of them began to recover in 2014. According to the statistical offices of Slovakia and Portugal,
The Warsaw market is also poised for growth in 2017. According to the National Bank of Poland (Narodowy Bank Polski), property prices in the city fell by 13.9% between 2008 and 2016: from €2,314
Analysts are divided with respect
Meanwhile, experts from professional services firm EY and real estate firm Knight Frank have displayed considerably more optimism about Polish prices in the coming year, anticipating growth across the country, with pronounced growth in Warsaw. Mortgage rates in the country remain low, while the population and demand for property are on the rise.
During the global financial crisis, prices also fell across the Baltics. For instance, according
For investors whose primary goal is to maintain capital
Those who wish to play it safe and who prefer reliable
In Berlin, Vienna and London, residential property prices have increased continuously.
Berlin experienced the most dramatic growth, with prices of property
The recent property boom in Berlin is attributable to a number of factors: including the growing population, shrinking unemployment rates, mortgage rates having sunk
Prices in London grew by 84% between 2008 and 2016. According to the Nationwide Building Society, residential property prices in the UK capital grew from an average of €300,000 in 2008 to €560,000 in Q3 2016. According to Numbeo, a sq. m. in central London costs an average of €18,000.
As of late 2016, flats for sale on central
Between 2008 and 2016, Vienna residential real estate prices increased by 20.7%, according to the National Bank
Stockholm, Helsinki and Luxembourg also experienced
For example, residential property prices in Stockholm have increased by an average of 63.7% since 2008. Prices have generally been continuously on the rise in the Swedish capital, with the exception of 2011 when residential property prices fell by an average of 1.3% as compared to 2010. As of late 2016, flats in central Stockholm were selling for an average
Price surges of more than 30% have been observed in Helsinki and Luxembourg.
A slight decline in the capital of Finland was only observed in 2014. At present, property in the city costs an average
In Luxembourg, prices only fell in 2009, and as of late 2016, had picked up by an average of 36% since 2008.
Residential property price dynamics in the largest European cities Sources: Trading Economics, national financial organisations and statistical offices, online real estate platforms
||Nationwide property price dynamics forecast,
In 2017 we encourage investors to diversify their investments and distribute their capital between different markets.
If a client came to Tranio.com today and asked how they should invest, I would suggest that they put the majority (70%) of their investment capital into
low-riskprojects that are known to yield 4-5% per annum.Microapartments (20-30 sq. m.flats) in big German cities are perfect for this type of investment. Due to their minuscule size, microapartments are relatively inexpensive for tenants, while also ushering in relative high rental revenue per square metre for owners.
I’d encouragethe investor to put the rest of their investment capital (30%) into a Spanish redevelopment. Such projects typically yield 12-15% per annum.Right now the Barcelona property market is ripe with opportunities. Residential property prices in the city are still a far cry from reaching their peak, there is a shortage of newly-builtreal estate in the city, loan rates have dropped to the minimum level and prices are broadly expected to soar in years to come.
Yulia Kozhevnikova, Tranio.com
Originally published on triplepundit.com