Outlook for European real estate market moving onwards and upwards

Investment in European real estate is at its highest levels for more than five years with strong performances from both the commercial and residential property sectors.

Investment in commercial property for Q3 has hit heights it hasn’t seen since the property crisis that gripped Europe in 2007 struck, with more than €35 billion worth of transactions being completed.

This is an increase of 21 per cent on Q3 of 2012, with all of the continent’s main markets including the UK, Germany, France and Spain performing well.

Meanwhile, residential property in Southern European countries has also been attracting large amounts of interest – particularly in Spain – with some governments launching initiatives offering non-European citizens residency permits should they invest a certain amount of money into property.

Coastal property Spain

Coastal property in Spain attracts the eye of investors

Spanish property; popular with British, Scandinavian, German and Russian buyers witnessed a 46 per cent increase in the number of homes sold to non-resident foreign buyers in the second quarter of the year compared to the same period last year.

Close to 15,000 properties in Spain were bought by foreign buyers in this period according to the General Council of Notaries’ most recent figures.

British buyers, the number one nationality in terms of numbers when it comes to investing in Spanish real estate, continued to chase a place in the Spanish sun showing a 25 per cent increase in property purchases compared to 2012.

French, German, Russian and Belgian buyers followed in terms of demand, while Murcia (+43 per cent), Andalusia (+37 per cent) and the Valencian Community (+32 per cent) were the areas that benefited most from the surge in foreign demand.

However, countries like Spain are increasingly looking further afield to attract more investors – both in the commercial and residential sectors.

Cyprus, Greece and Portugal make up the quartet of countries that are trying to attract investors from outside the continent by offering residency visas for buyers investing a certain amount of cash in property in their respective countries.

Chinese buyers in particular are being targeted and in Spain, where the minimum amount of investment to qualify for a residency visa if you’re a non-European citizen is €500,000, it appears to be having the desired effect.

The country received an almost immediate response from prospective Chinese buyers enquiring about property, while Barcelona based estate agency Lucas Fox it was dealing with triple the amount of property enquiries from non-EU citizens in the aftermath of the plans being revealed.

In the meantime, the agency that deals with China’s $3.66 trillion of foreign exchange reserves is said to be investigating European property investment opportunities.

Image1 courtesy of: Luis García (Zaqarbal)

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather