Investments in real estate in Europe: which countries should be paid attention?
Unlike the Russian real estate market, which has fallen significantly over the past couple of years, real estate investments in Europe are in high demand.
According to research results, in the third quarter of 2018, the level of investments in this sector amounted to 69 billion dollars, and from January to September – 216 billion. It is expected that in 2019, the market will continue to grow, and its most popular sites will be sites in the Netherlands, Belgium and France.
Residential sector – an attractive direction for investment in real estate in Europe
If you own a property and plan to rent it out, consider the importance of housing affordability for a resident of a particular country. The lower it is, the higher the likelihood that a person will be able to buy an apartment. According to the analyst of the international company Deloitte, the lowest rates are in France, Belgium and the Netherlands. In these countries, a local needs from 3.7 to 8 years to accumulate funds to buy an apartment.
The rates of development of residential sites in these countries also differ. If in France in 2017 almost half a million apartments were built, in Belgium there are only a little more than 44 thousand. At the same time, these figures are still higher than the average for Europe. That is why investments in residential real estate in these countries can make a profit.
Analysis of the cost of local objects shows that the Netherlands is the most profitable country for investment. Here a square meter in 2017 cost 2306 euros, and in 2016 – almost 7% cheaper. In other countries, the growth rate of prices is much lower – 1.2% in France and 2% in Belgium. It turns out that prices are rising actively in the Netherlands, so this country is most attractive to investors.
What happens in other real estate markets in the states under review?
The distribution of leadership positions in office, industrial and commercial real estate in Western Europe is different. As for the first category, the capital of Belgium shows the highest profitability, followed by the main cities of the Netherlands and France. In percentage terms, the indicators are following:
Brussels – 6.75% to 7.25% (depends on a part of the city), Amsterdam – 3.5% -5.75%, Paris – 3-4% -4.1%.
Those interested in industrial real estate should pay attention to France. The price per square meter of industrial premises averages 500 euros, and the annual percentage of profitability, for example, in Lyon is 4.75%.
Analysts predict that in 2019 large realtors from Europe will come to the Netherlands retail property market, and therefore the number of space will increase. In 2018, possession of such objects in Amsterdam brought up to 3% of profitability, in regions higher – from 3.6 to 4.75%.
