Just one click away from you – perhaps the most important material of the year: the information that can change your priorities. In 2014, the international property market there have been many significant events. Who have already and will certainly have an impact on buyers and sellers, sums up the year. If you interesting whether the country is among the most distinguished?
Latvia reforge golden visa
What happened. Since 2010, Latvia is working so-called program “Visa Gold” by which foreign buyers of real estate to a certain amount can be granted a residence permit in the country. For a long time the Latvian residence permit were the most accessible in the European Union – had to spend between € 142 300 per square meter in Riga, the metropolitan area and the largest cities, and from € 71,150 – in the province.
The program is in demand. Thousands of transactions with real estate business-class and above one billion euros of investment over 10,000 residence permits issued for customers and their families, mainly from Russia.
All those years in political circles in Latvia were disputes about the future “gold visas.” Offers sounded different from the quota system to suspend the program. As a result, we decided to simply raise prices and significantly. On September 1, 2014 to obtain a residence permit from the property should be worth € 250 000 , regardless of its location. Also introduced a mandatory one-time payment of 5% of the purchase price, ie at least € 12,500.
What will. The number of applications for a residence permit in Latvia by buyers reduced significantly. By the end of 2014 coming decline in activity became apparent that if in the first nine months of 4000 was granted “golden visas” that over the next three months, gaining only 29 applicants.
Accordingly, and reduced the number of real estate transactions business class in Riga and Jurmala. Expensive facilities in Latvia bought mainly by foreigners, while domestic demand is concentrated around budget accommodation. The decline in demand is likely to hit and prices.
At the same time the program will continue to operate. As repeatedly wrote Prian.ru , calls to limit foreign, and in fact, Russian investors are regularly heard in Latvia before the election and are simply political rhetoric. Moreover, he assured the head of the Office of Citizenship and Migration Affairs of Latvia Maira Roze, property owners, who bought the facility in previous years under the old rules will be able to extend their residence permit.
Croatia opened its borders to private traders
What. Croatia never enjoyed high popularity among buyers of the former Soviet republics. Of the 10 people who are interested in the Balkan Adriatic, eight chose Montenegro, and only two – Croatia.
His role was played by and the prices in the latter country above. But the main thing – the restriction on carrying out transactions. Buyers from countries outside the EU could issue property solely on a legal entity registered in Croatia. This is not only time but also the financial costs – from € 3,000 a year for the maintenance of the company is usually unnecessary.
In June 2014 the authorities went to meet foreigners and allowed to acquire property for an individual . Interestingly, immediately after that intensified and banks. Thus, the Croatian representative of the Savings Bank was to make loans for housing Russians.
“With the new additions to the legislation of Croatia, the procedure of purchase of real estate for the citizens of Russia simplified. By the way, people who previously have issued the ownership of a legal entity, can transfer property to his name and eliminate the company, “- says Svetlana Kryukov-Jovanovic, a representative of the Croatian Agency Alma Dom.
What will. Bombshell new law is not made. On the one hand, for the six months of its action is not all potential buyers have time to learn about the new features. However, the procedure is not fully simplified. Under the new rules, after the signing of the sales contract and make payment all documents sent to Zagreb for the approval of the transaction by the state. This procedure lasts from six months to a year. The right to use property a foreigner comes immediately, but it becomes the full owner only after obtaining the consent of the authorities.
Nevertheless, the result of the new law will probably be – unless, of course, will not play a role external economic factors. It may increase demand, especially low cost items that were previously due to high costs associated foreigners to buy was not profitable. For example, a small apartment near the sea, costing from € 50 000.
Also from January 1, 2015 are expected to change in the law relating to property tax. “Since the new year, the purchase of the object at the company, which pays the VAT will not be taxed on real estate 5%. Ie will be profitable to buy new development – says Svetlana Jovanovic, Kryukov. – We expect that this innovation will attract foreign customers. Well, of course, our regular trumps – a large number of sunny days a year, clean air and crystal clear sea. ”
Montenegro has promised a residence permit, and Greece – citizenship
What. Real estate markets of Montenegro and Greece for five years are in a weakened state. And if the first decline in prices is observed mainly in the capital and outlying areas from the sea, the second continues to become cheaper – though not as urban – and holiday homes. Foreign demand for property could help the industry out of the crisis …
Apparently, that logic guided by the authorities of both countries, who in 2014 headed for attracting foreign investors to the “carrot” in the form of a residence permit and citizenship. The Montenegrin government has approved a draft law under which foreign property owners can obtain a residence permit.
“Buyers do not have to go every month to the neighboring country. Today, without a visa can stay in Montenegro up to 30 days, – explains the benefits of the bill Director ADRIATIK STROINVEST Alexei Smirnov. – Also, do not have to – and this is especially true for seniors – to open a company, 90% of the inactive, in order to obtain a residence permit, and to bear with the expenses for the establishment and maintenance of legal entities – from € 2,500 per year. ”
In Greece, the ability to obtain a residence permit when buying a property for € 250,000 (and more expensive) opened in 2013 . In 2014 the authorities of Greece have gone further. A senior official from the Ministry of Foreign Affairs of Greece said that in the future, foreign investors will be able to apply for citizenship and .
What will happen. The key to both initiatives – these are just plans, though expressed at the state level. It is still not clear in which cases will be given residence permits and citizenship, some additional conditions will have to perform the applicants (may insure property or to deposit in the bank a tidy sum), and when these projects will gain the status of the law came into force.
Real Estate Market Participants greeted the news with cautious optimism. Interest in their countries have warmed statements of politicians. However, whether it will result in a specific transaction – in many ways it will depend on what version of the promised amendments will.
“Everything will depend on the conditions and the list of required documents for obtaining citizenship – says Daria Chashina Grekodom Development of the company and immediately adds – Of course, this bill will positively affect the sale of real estate and generally increase the level of attractiveness of Greece.”
Turkey rewrote price tags
What happened. According to the news, which in 2014 came from Turkey, the local real estate owners had no time to rewrite the price tags on their sites. Knight Frank analysts have estimated that in the third quarter square meter in the country rose by an average of 14% year on year. For the countries of Southern Europe, where housing in recent years has been steadily cheaper – an unprecedented situation.
The surge in demand for Turkish foreign villas and apartments and do amazing – plus 60% of transactions in comparison with 2013 year . Local residents are also actively buying up real estate. According to Eric Rosenfeld, Director of Sales ETU Homes, is the growing demand has led to a jump in prices. “As a result – the active construction. So, and the purchase of land. Interesting building plots we have in Alanya is getting smaller. Land prices naturally rise. What is reflected in the prices of apartments. Here’s an example: our company has built a residential complex Vesta Cleopatra in Alanya five years ago. Price per square meter while in 1100 amounted to €. A few weeks ago, next to our house began construction of a new project. The cost of the “square» – € 1540. 40% more expensive. ”
Strictly speaking, in 2014 Turkey only harvesting and soil produced two years earlier. In 2012 it was repealed the so-called “principle of reciprocity” – when foreigners are allowed to buy only what they allow in their territory to the Turks. The result – a sharp increase in the number of transactions and, consequently, the price of real estate – turned out to be predictable.
What will. Despite the fact that the more expensive real estate in Turkey since 2007 (even in crisis 2009 growth is not replaced by a decrease, but only slowed down), signs of overheating of the market has not yet seen. Prices are still available – not only for foreigners but also local. “Resale” on the coast is from € 500 per “square”. The economy is developing, the demand increases, developers in business …
In 2015, the drop in the real estate market in Turkey do not predict even the most pessimistic economists. Growth will unambiguously at least 5% per year.