In the last 4-5 years, European countries set a course of price improvement. The changes are well observed in Germany, Austria, and countries of the Iberian Peninsula. If speaking of the Russian real estate market, there is also a steady trend of increasing housing prices.
As of now, new establishments became expensive by 10%. While the housing on the secondary market has risen in price only by 8%. Such variances are explained by many factors. For example, an economic situation makes a big impact on them. Other reasons are the income and employment of different segments of the population.
Experts also mention that price development can be influenced by the state of the mortgage market, the balance of demand and supply, and not the last role play structural changes such as the rejection of cooperative housing projects.
High, low and steady housing
In 2019, the recorded price growth according to the Global Property Guide relates to the Philippines, where it reached 15%. While Sri Lanka showed more than 9% increase, New Zealand 8%, and Chile 5%.
These numbers do not bother Russian buyers as far as they buy housing in other countries. Their area of interest comprises Germany, where the price improvement reached 7-10%.
According to Philipp Berezin, an expert in the foreign real estate market, the price growth in Germany did not show dynamic in recent decades and boasted a steady trend. But over the past 10 years, it skyrocketed by 70%. Also, he mentions that all the changes are mainly provoked by the influx of refugees and low rates.
The same tendency is observed in Austria, Vienna, where the growth is quite modest only 4.5%. And, Spain where it exceeds 5% but depending on the regions. The apartments on the coast of Spain remain the most expensive ones.
Russians like to invest money in there due to immigration opportunities such as Golden Visa. It is granted for those people who bought a property worth more than € 500,000. The same program works in Portugal.
The countries with steady housing prices are Italy and Finland. Excluding Helsinki, where prices are constantly growing.