The countries of southern Europe: take off or fall?

The global financial crisis did not spare anybody. But time goes on, that has come to the end of 2014-th. So, it’s time to sum up the next positive – or not – the results. So, what happened in the real estate markets of southern Europe in the past year? And as Cyprus, Italy, Spain, Portugal, Greece and Turkey will please buyers in 2015 ?.
Cyprus – the annual decline in house prices – 9.2%
In the midst of crisis, he got almost more than anyone. It did not help, and membership in the European Union. During the collapse of the economy followed by the collapse of the real estate market. No objects were not sold for a penny. They fell, but not fatal, but sales fell at times.
Recent years have shown that lowering the prices have spurred interest from foreign buyers. But the real estate market came to those who had little interest in cheaper regions. According to experts, at the expense of Cyprus in small steps, but goes to recovery.
Specialist company ABC Cyprus Homes Regina Campton adds that the Cypriot government in 2009 launched a program “golden visa” that allows you to get a residence permit when buying real estate in the amount of € 300 000. It has been successfully operating today. Only in the last two years for the purchase of housing in the country has issued more than 1,000 residence permits.
In 2014, Cabinet revised the conditions for obtaining citizenship by foreign investors. Now you can acquire Cypriot citizenship by acquiring new property value by € 2,5 mln or secondary – from € 5 million. Advantages gained citizenship in the design and depositors lost more than € 5 million during the banking crisis of 2013. They need to buy real estate in the amount of € 500,000.
“All this allows us to expect that in 2015, housing prices finally stabilize, and therefore, even more significant sales increase, as the market will return wealthy investors.
Foreign buyers will continue to come to market in Cyprus is not only due to the residence permit. Even with the acquisition of real estate in the amount of less than € 300,000, an opportunity to receive education in British schools and universities of the island. Nobody canceled and lower income taxes in the conduct of business. I think that in 2015 foreign demand will remain at the same level “, – said Regina Campton.
Greece – annual decline of 7.7%
A brief excursion into history: from 2000 to 2008 in the country due to the rapid economic growth and lower interest rates on mortgages, property prices rose by an average of 10-15% per year. Since 2008, this time of grace is over, prices frozen. And already in 2009 and to this day annual housing cheaper by 7-10%.
The emergence of a large number of affordable housing in the Greek market has attracted new buyers. Daria Chashina Grekodom Development of shared information that in 2014 the company through their Greek properties mainly purchased by people 30 years old with an average income. Usually, they considered the purchase of economy housing in resort areas near the sea, but there was a significant interest in the exclusive objects.
“This year there is a tendency to invest in small objects, the area up to 60″ squares “, which are used to make a profit from renting. We believe that in 2015 it will only be strengthened “, – said Daria Chashina.
As for the prospects of foreign millet specialist he noted that in 2015 it will only grow. After all, Greece – this is not just a platform for investment, but also a comfortable, welcoming environment for living and recreation with low crime, quality education and peace-loving religion. Do not forget about the residence permit when buying Greek property from € 250,000, as well as new state programs for elite real estate , which are aimed at attracting investors.
Spain – annual decline of 2.7%
From 2000 to 2007, property prices in Spain are continuously growing by an average of 5.5%. Then began a prolonged descent with all the consequences that has not yet stopped. However, the panic passed. Demand for real estate shows double-digit growth, the construction sector began to gain momentum, and the annual decline in prices is seriously slowed down. Even in the third quarter of 2013 on, he was 12%, while in the same period this year – about 3%. Positive changes in the face.
His contribution to the fracture of the negative dynamics of the market and legislative changes made. In late 2013 the government launched its program “Visa Gold” .
Yulia Bodrov from Costa Prestige noted that, despite the obvious improvements, the year turned out to be complex and unstable due to international political tension. This has had an impact on foreign demand, primarily from Russia and CIS countries – it has decreased.
If we talk about the general situation in the Spanish market, and above all – in Marbella and the Costa del Sol, it has since the beginning of the year property prices began to rise gradually. Especially on secondary objects as they almost gone.
Due to the “golden visa” from the summer was a clear division of buyers wanting to buy property in excess of € 500,000, and seeking options for economy class. The latter were in the majority. Demand for luxury housing is small but steady.
“By year end, the overall situation has not changed, and the main trends continue in 2015. I think the local market will attract customers more choice of objects in buildings. Many opt for the complexes, which have just started to be built. Also, a lot will depend on the overall geopolitical situation of the ruble against the euro “, – concluded Bodrov.
Portugal – the annual growth of 1.5%
In 2009 the market collapsed: prices have fallen, the demand disappeared, construction stopped. But in 2013, the first signs of recovery – the price is almost frozen, and in 2014 recorded an increase at all. Many analysts still in 2013, said that the market has reached bottom, prices stayed at a minimum, and further movement is possible only in the direction of increasing.
Due to the “golden visa” (for the purchase of real estate for a total amount of € 500 000) revived the segment “elitki.” Since October 2012 Portugal 1360 issued such residence permits. Despite the fact that in recent years the construction sector in the country sprang, new and old projects being completed in Portugal are still more popular is Resellers. “Buy the objects on popular streets, on the first line, and then restored or completely rebuilt and converted into luxury housing”, – explained Mikhail stockings and Eugene Uryupina the company Michael and Jeneva Portugal Property
Russians and Ukrainians are among the ten most active investors, although the unconditional leadership is up to the British. Most often, buyers are interested in a 2-3 bedroom apartment valued at € 200 000-350 000, or house near the coast for € 300 000-450 000.
“In the coming years we expect a smooth rise in the Portuguese market, accompanied by an increase in property prices by several percent per year. The growth will come at the expense of the secondary market, but gradually comes to life and the primary. Developers now offer new forms of cooperation, banks are trying to liberalize credit policies. Foreign demand will significantly increase, including on the part of the Russians, “- added the expert.
Italy – annual decline of 4.6%
Here, the crisis has not passed unnoticed, but not as loud as in the above countries. The economy is still going through hard times, but the real estate market is more or less stable. Reduced price is, but small. Company director Ian Rellox Reyh believes that in 2015 the decline in prices will not exceed 5%.
The changes do not affect the demand from foreign buyers. However, as already noted by many experts, the situation with the Russian buyers will depend on the exchange rate.
“In 2015, interest will be focused on the luxury real estate. But the offer economy-class expected to stagnate. The main problem is low demand from Italian buyers. As an investment the most interesting objects I call real estate near Lake Garda, Maggiore, Iseo, in the famous ski resort – in the Dolomites – Val Gardena, Val di Fiemme and Val di Fassa, in the major cities of northern Italy. Financially interesting is to buy resale property in need of renovation in Tuscany “, – concluded the director of Rellox.
Turkey – an annual increase of 14%
One big exception on the background of the situation in the main markets of southern Europe. Back in 2003, when Turkey allowed to sell property to foreigners. Then on the local resorts on par with hotels began to build residential complexes. Prices for this property are extremely low, so I started to grow. In the first two years of price increases up to 100%. Then the growth rate decreased, with the help of the crisis, and the situation has stabilized. However, with respect. For example, in 2009 the cost per square meter in the Turkish new building business class on the sea was € 500, and today – about € 1100. In 2013, a house in Turkey has risen in price by more than 13%, and this year is expected to nearly 14%.
In addition, the Turkish real estate sector – one of the fastest growing in the territory of the Mediterranean region. Positive dynamics is observed in this area in many cities, including Istanbul and Ankara, as well as kukrorty on the Mediterranean and Aegean seas, says the sales manager of the company Christine Sudakova Restproperty. Resort Antalya region for more than a year is the most popular among investors from Russia and CIS countries, which invest not only in residential but also in commercial real estate.
The specialist added that to fear a drop in demand in 2015 is not necessary, as the market shows all the signs of stability for more than a year in a row. This is primarily due to the rapid development of tourism, low interest rates on mortgages for foreigners, favorable taxation, there is no restriction for investors and the full protection of the rights of the owner. All this contributes to a real increase in demand and rising prices for real estate in Turkey.
“If we talk about the future, we will not hide the fact that because of the situation with the euro rate against the ruble, the last couple of months, there was a decrease of activity of Russians in terms of investing in foreign currency. But even with this situation can be called stable. At the moment there is activity of citizens of Kazakhstan, UAE and Ukraine. Turkish builders have always been loyal to the question of payment, and offer flexible installment plan “- added Sudakova.

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