Real estate markets in Europe 2013: traveling in different directions

Real estate markets in Europe 2013: traveling in different directions

In 2013, the real estate markets in Europe were moving extremely mixed. As, however, in the previous, 2012.

After the three quarters of 2013 the real estate prices dropped the most on an annualized basis in Croatia (-19.7%), Spain (-12%), Greece (-9.1%), Cyprus (-5.9%), Hungary (5.6%) and Italy (-5.1%). The leaders of growth - Turkey (12.5%), Germany (11.2%), Estonia (8.4%), Denmark (7.4%), Iceland (6%).

Since 2012, almost nothing has changed: the same growing markets, the same outsiders. Just real estate prices in Austria and Norway were growing in the past year not as fast as in 2012, while Slovenia and Romania were able to get out of the first dozen of the "falling costs" of Europe.

This means that the "cheap" keep cheapen and "expensive" continue to go up, and the price gap between the markets in 2013 increases further. Of course, it is not about absolute prices in their monetary value, and the difference of the current indicators with the beginning of 2012. Some, like Spain, are still going to the price bottom, and someone like Estonia is already seeking back to pre-crisis levels.

Experts of the Colordarcy Investment company named the five worst markets of the year, and it turned out that they are all in Europe. In their assessments experts focused on the fall in property prices, as well as the profitability of rental housing. Italy, Croatia, Spain and Hungary got the places from fifth to second, and the victory in the ranking was awarded to Greece.

Expert opinion of ee24.com portal

Julia Titova, director of international real estate agency Rentsale:

"In any country, there are places where the demand has always been, and will always be, and buying the right object for a good price is a bargain purchase, even if we are talking about a country in crisis that fell into malevolent rating.

I do not think that Greece is really so bad. Indeed, buying there for investment is an utopia. But for their own use people buy, and the reality of the market is represented by the cheap apartments, comparable in price with Bulgaria (in this case, you will agree, infrastructure and climate in Greece is better).

Even more interesting offers are for villas: for €150,000 - €300,000 in Greece you can buy a nice house in a great location within walking distance to the sea. Few places have counterparts in price and quality. Such countries as Montenegro or Italy obviously lose to Greece in this respect."