For Russians, buying property in Europe becomes one of the easiest and safest ways to keep savings due to currency fluctuations. Rouble once again updated its historic low against the currency basket. The high volatility of the market has led to an increase in speculative sentiment. In search of reliable assets the Russians as always have turned their eyes to the real estate.
20% for six months
"I've bought an apartment in Italy in May 2013. Exchange rate was something about 40.6 rubles per €1. I had rubles in my bank account and before the buying I've changed it for the euro. You can not imagine how glad I am," says Vadim.
Indeed, it is easy to understand Vadim. Those who for some reason put off buying overseas property until 2014 and left their savings in roubles have already lost about 20% as of January 2014.
Analysts of all banks, both Russian and European, say the same things: the minimum projected price of euro is 50 rubles. Nobody is ready to say what the maximum price can be, although a month ago experts were saying about 52 rubles.
In this situation, saving money in European assets is the most profitable. "Of course, you can keep your money in euros in bank accounts, but given the instability of the banking sector and low interest rates on deposits, it is unprofitable. If you buy real estate in Europe today "for rubles", you will be the gainer. Probably it has higher profitability than deposits,"says the managing partner of ee24.com Konstantin Grape.
Indeed, according to the portal ee24.com, the activity of Russian buyers this winter has significantly increased. Compared with December, the number of visits in January increased by 12.96%. Russians more often were looking for property in Estonia (number of visits of our portal due to this search query increased by 2.2 times), and in the other Baltic states. Number of requests for property in Spain and Poland also increased. This trend is confirmed by the experts.
"We don't see the traditional after-holidays recession. In January, buyers continue to make inception visits and they make purchase decisions very quickly. As before, real estate that gives the opportunity to get a residence permit, is in great request in Latvia," says Karlen Kalashyan, manager of real estate agency Property Selection.
Germany and France are leaders when we say about the safety and liquidity, but property in these countries is always expensive.
In addition, as in the last year, there is a high demand for real estate in the Baltics . It's none of surprise given their growing investment attractiveness. Propery prices in Estonia and Latvia are growing but they are still low in comparison with other european countries. Moreover, it's easy to obtain a residence permit in Latvia when buying property.
It makes sense to pay attention to the markets that've hit the bottom. Spain is certainly the first one that comes to mind. At a bargain price you can buy a property in Spain on the sea, surrounded by the beautiful architecture and infrastructure.
Riga
"The most important is to decide what is the main reason of your purchase. If your goal is a residence permit, the easiest option would be Latvia. If you are considering buying real estate in terms of investment attractiveness, choose Germany or France. A nice house on the seacoast can be found in Portugal or Spain," says Mr Kalashyan.
Buying property in Europe: isn't it better to wait?
Is it profitable to invest in real estate in Europe? Experts of portal ee24.com are unanimous: now is the time to buy! There are lot of reasons. Main of them are the instability of the economic situation in Russia, and the ability to find the best offers in Europe nowadays.
Dresden
"Now is a good time to buy. First thing that comes to mind is Germany. Most of properties in Germany can generate income. Latvia is attractive because its policy on residence permits. Property market in Latvia is on the up", says Julia Lozovskaya, chief editor of "Your home overseas."
Text: Valeria Razumova, ee24.com