2012 is closing to its logical conclusion, leaving a memory as the year, which is almost summed up the crisis. Over the past 12 months Europe has taken a big step towards the stability of the property market. House prices start to rise slowly in the direction of the pre-crisis bars, and the number of transactions is gaining momentum. EE24.com analyzed the changes, trends and prospects of development of the most popular countries in Europe among buyers and investors: Italy seeks to the pre-crisis prices Italy was among the countries significantly affected, but quickly escaped from the crisis. The change of power favorable impact on the economy, putting Italy on the way to its past stability. In the Abruzzo and Calabria experts have recorded a positive trend in prices in 2012. Markets of Veneto, Tuscany and Liguria throughout the year remained stable, what we can’t say about Campania where was fixed the fall in prices by 3-5%. «2012 showed that the most stable region of Italy is Tuscany, where the crisis was almost invisible. This explains the influx of investors to this very sunny and warm region», - says Erik Karselius, manager of the Italian company «Jan Boomkamp». The national average cost of housing «hung» on the price level of 2007. In the first half of 2012, the prices of a new property in the 13 largest cities in Italy decreased by an average of 1,8%. So today, at the end of 2012, the local real estate put up for sale for 11% cheaper than in 2008, when the industry saw the rise. In the first quarter of 2012, the number of transactions in commercial real estate has fallen by more than 90%, due to the fear of investors to invest in unstable economic of the country. The interest of foreign investors in the luxury housing sector has increased by 23% compared with 2009. Experts say that more than 11% of all transactions of the prestigious housing were made with non-residents. The most popular among foreign buyers are private residences in Rome and Milan, houses in tourist areas and estates in Tuscany and Umbria. Modern Italian property market is focused firstly on foreigners. Domestic demand remains very weak - the reason for this is still unstable economic situation. Maximum number of transactions made with British citizens, residents of Scandinavian countries, the Germans and the Russians. What we should wait for? According to experts EE24.com prospects of the property market in Italy is mixed. On the one hand, the decline in the market is not expected in the future. It is possible to predict the growth of real estate prices in Italy. On the other hand, the economic situation may drive some regions of the country into stagnation mode. However, the Italian real estate market are the traditional win-win variants, such as Tuscany, where housing is good investment independently of economic environment in the world. Spain - the struggle with the consequences of the crisis Spain is among the countries where the consequences of the global crisis were particularly painful. Throughout 2012 Spain was an example of the highest level of unemployment, rapidly falling house prices, mass withdrawal of real estate for the debts (more than 330,000 items since 2007) and all sorts of Government’s trying to recover the economic. For example, there is a new low to get a residence permits for foreigners/ now it is possible if you buy a property costs more than 250,000 euro. This event, of course, will increase the interest of buyers to the Spanish market. Experts point out that the property lost in the price about 30% compared to the active and dynamic 2007. Market in the country was filled with objects whose owners could not pay on the mortgage loans. The only way out was the rapid sale at reduced prices. This trend has initiated an overall decrease in property prices in the country. Cost per square meter in Spain today range from 1,000 to 1,500 euro. The inflow of foreign investment in the second quarter of 2012 increased by 2,5% year on year. «The crisis is not removed, lowering the bar of prices lower and lower. There is no possibility to build new facilities, so in recent years for the sale will put houses and apartments built before the crisis. Most of these buildings are concentrated in Barcelona, so the real estate market of this city has a special demand», - Ricard Guinart, the representative of the Spanish company «Casa». On November 1, 2012 in Catalonia enters into force the amendment to the law of the tourist tax. Now the tax would apply not only to the tourists who stay in hotels, but also to those who living in the private sector. After blowing off the «bubble» in the property market, the total value of residential properties fell by 360 billion euro, it is equivalent to about 35% of GDP. Today, the total volume of transactions in the property market in Spain is 33% lower than in the middle of the «peak» in 2007. Unlike the Spaniards, who are unable to buy the house and wait for better times, foreign investors in light of the serious decline in prices buying all property. Sales volumes of non-residents for the past three years reached their maximum. The most active foreign buyers are people of Northern Europe. Swedes and Norwegians prefer to buy flats and houses for private recreation area near the coastal resort areas. Russians are more interested in Andalusia, Catalonia and Valencia. What we should wait for? Today in Spain there is active development of infrastructure. The government hopes to attract potential buyers. For example, in the province of Alicante launched high-speed train to Madrid. This allows the homeowners in the resort area get to the capital for a couple of hours. Despite the fact that the housing market in Spain signs improvement, according to experts EE24.com it is still too early to draw conclusions about the future future - it is possible that by the end of 2013, housing prices will fall in another 6%. In addition, the fourth quarter of 2014 the number of vacant properties in Spain will fall to the level of 500 thousand. Number of unsold housing range from 850,000 to 900,000, of which 200-250 thousand owned banks. To date, Spain has not the most stable market, and the decision to buy a property depends on the goals you are pursuing. If you are interested in a summer vacation at an affordable price, then you don’t care about the fall or rise in prices by 5%, but if you are interested in investing in order to steady growth, it is better to make the choice in favor of France. France as a bastion of Europe Since the second quarter of 2011, real estate prices in France have slowly grown. Throughout the country they rose by 3,3% and in the metropolitan area - by 4,3%. Today, the housing market in the country is stable. Foreign investors are not afraid to invest their money into the French house, even in the midst of crisis. Now when the crisis is on its last legs, it is fixed the growth of investment. In the third quarter of 2012 in France was marked a huge jump in sales: plus 114%. For the first 3 quarters of 2012 non-residents have invested 40% of the total amount of investments in real estate in France. The growing popularity of French housing coursed by the lowest interest rates on mortgage loans in Europe. Buyers have opportunity to get a loan for 25 years with a rate of 3,75 - 4%. The high demand for property in France was a logical reason for the price increase. In the southern regions of the country - in Nice and on the French Riviera - apartment prices rose by 4%, of homes - by 8%. Speaking of Paris, prices of homes rose by 3,8%, and an apartment - by 6,2%. The French government has announced an increase of the tax on capital gains and rental income for foreign ownership of houses. Tax on rental income in the sector of real estate will rise from 20% to 35,5%, while the tax on the capital gain the resale of real estate - from 19% to 34,5%. Due to this the French government hopes to increase the state budget of about 50 million euro by the end of 2012 and 250 million euro in 2013. Since January 2012 wishing to become citizens of the state, should show a diploma or a state certificate of knowledge of the French language. Russians traditionally prefer to buy a house on the Riviera, Provence and the Alps. Real Estate in Paris is mostly buying by Italians, Germans and British. According to Andrei Demchenko, director of France's «Great Mile»: «Against all regions of the country stands out Lake Geneva, where the market has continued to grow even during the crisis. Because of the high cost of real estate in Switzerland, which borders with this region of France, many people prefer to invest in the last country. Also, the crisis has not affected the luxury sector in France - Cote d'Azur continues to attract the buyers». What we should wait for? «In 2013, the French real estate market will remain one of the most stable in Europe. Tough tax reformation for locals not affect the interests of foreign investors», - the head of the project EE24.com Anastasia Grishina. We can say that the European real estate market in the context of the most popular countries, slowly but surely coming out of a long stagnation. Price level begins to rise slowly, trying to get to pre-crisis level. Current trends in the European real estate market make housing the most profitable and perspective.
Read more on ee24.com: http://ee24.com/trend/three-countries-leaders-real-estate-sales-results-year-2012/
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