Prices for luxury accommodation in the ski resorts of Greece fell by half. In Turkey, there is a shortage of affordable housing. Number of real estate transactions in Bulgaria decreases. We present a selection of the most important news of the week with the comments of market professionals.
Prices for luxury accommodation in the ski resorts of Greece fell by half
Local real estate since the peak of 2008, the average lost 49% in value.
The financial crisis has dealt a heavy blow to the real estate in the winter resorts of Greece. Experts estimate that today the market is idle about 10 000 objects of luxury housing.
Property located in the resorts, which are well in demand for winter holidays, such as the Arah, always in high demand. True, few people are interested in them because they are considered too luxurious. Accordingly, due to a sharp drop in demand has been steadily declining and the cost of housing.
In some regions, the price decline in excess of 50%. For example, in the Agios Athanasios in Pella, which is located to the west of Thessaloniki, the average cost per square meter fell by 60% and amounts to € 1 360. In Arachova reduction of more than 53% of the “square” asking € 1400.
Despite such attractive prices, demand for real estate in ski resorts close to zero. According to official data, from 2007 to 2012 the number of transactions decreased annually by 28.2%.
I wonder what proshodit with the elite real estate at the coast? Whether it is cheaper, and how much it currently costs the purchase? These questions are answered Vadim Dolmenidis, a company «Greece Invest»: «The large price drop in the ski resorts is quite justified, because domestic demand fell sharply during the crisis, and foreigners do not buy real estate in ski resorts in Greece. It must be admitted that this type of real estate, there are more attractive destinations.
As for the prices for elite real estate on the coast, they dropped all over Greece , but the level of incidence varies considerably depending on the region. Regions that are traditionally in demand by foreigners fell slightly in price, compared to other beach resorts in Greece. Among these resorts can be noted Crete, Rhodes, Chalkidiki, Corfu .
But I would not recommend that investors buy illiquid in regions where there was maximum drop in prices. For those wishing to use the emerging opportunities for competent investment I would advise to pay attention to the suburbs of Athens and Attica, where prices have dropped significantly, as traditional buyers were the Greeks, but the region has a good transport accessibility and investment potential . In addition, interest is unique objects in the popular resorts of Greece, especially the first line, private bays and other places with few natural characteristics.
With regard to the average cost of gentrification in the popular seaside resorts of Greece, it depends on the area, the location and finishing houses. If we talk about Halkidiki, the price level in a villa on the first line of 300 sq.m. It starts at € 1,5 billion and above. Land on the first line of 4 000 sq.m. start as low as € 600 thousand. “.
In Turkey, there is a shortage of affordable housing
Despite the abundance of high-end housing on the property market in Turkey, customers with lower incomes often can not find for themselves the available houses and apartments.
This conclusion is contained in a study published by the Association of developers and investors (KONUTDER).
The report says that the annual demand for real estate a maximum cost of $ 540 per square meter is 72 000 objects. Nevertheless, the market there is a shortage of housing in this price category. And despite the fact that the annual demand for real estate in cost from $ 540 to $ 890 per square meter is 48 000 units, the number of completed projects in this category is equal to total 10,767.
In a year in Turkey, built 63,363 of the property value from $ 890 to $ 1280 per sq.m., despite the fact that the demand for such housing is 8,000 units. Also in the year in the country is being built 32,445 houses cost from $ 1280 to $ 2140 per square meter, while the demand for them is 8000 units.
Analysts warn that if the number of luxury housing in Turkey will continue to grow at the same pace, the gap between supply and demand will increase.
Xenia Erdogan, a company «RestProperty», can not fully agree with the data given: “The fact that began to build better using better materials, the creation of interesting architectural solutions and the expansion of the infrastructure (in the complexes of at least a swimming pool, gym , sauna, table tennis, billiards, parking, landscaped garden and security), I can not deny. Of course, these developments were reflected in the initial value of the property.
However, there are new apartment layouts, for example, cost the studio “dvushek” in older funds. Studio – it’s actually a room with a kitchen and dining area. Taking into account the rich infrastructure of the complex, we can safely say that the customer gets a room in a five star hotel. Apartments of planning well sold and rented out, bringing their owners return.
Also, given that pricing in Turkey composed of the number of floors, mirrors, side light and only then squaring, you can find an apartment similar plan, or even a larger area for a very reasonable price, cheaper than analog with sea views. Builders take into account the needs and budget of the customer and building complexes with a variety of layouts to suit every taste.
At the same time actively developing the secondary housing market, resell their property owners sometimes at very favorable “burning” prices, realtors give each other a “pass” for apartments, they may have available. Thus, the new owner is in a few days. Realtors make a profit, and the customer – an apartment of their dreams on the pocket, and sometimes even cheaper than expected.
Still, we note that the price $ 540 dollars per square meter in the tourist regions of Turkey no longer find. ”
Number of real estate transactions in Bulgaria decreases
Contrary to analysts’ expectations of growth of real estate transactions in Bulgaria, in 2014 there was a 3% decline compared with 2013 year.
Such data are “Trud” with reference to the Agency for writing.
In 2013, the Agency was written 224 664 notarial acts for the purchase of real estate, and in 2014 – only 217,915.
Experts believe that the reason for the decline the number of transactions in 2014, lies in the policy of the Bulgarian banks and sold as property. It is the lack of attractive mortgage interest and a sufficient number of quality apartments in the country, generated a decrease in demand.
In 2014, growth in the number of real estate transactions was recorded only in Sofia and Plovdiv – by 12.3% and 8.1%, respectively. Very discreet growth was observed in Varna – 1.57%. A number of deals in Burgas slipped by 17.7%.
Analysts are unanimous that the sharp decline in real estate transactions in Burgas is associated with a decrease in the interest of Russians to buy property in Bulgaria because of the depreciated ruble, which made real estate in Bulgaria is too expensive for them. Local real estate agencies believe that the number of Russian customers decreased by at least 50%. First, our people have lost interest in Burgas and Sunny Beach, and later left the market of the Northern coast of the country.
Milen Yankov, Managing Director of “Bolgarstroy” can not unequivocally assert that reducing the number of real estate deals in his work: “Many customers decided to postpone the purchase back in the middle of last year due to a conflict with Ukraine. Then came an unstable ruble, which in turn caused many potential buyers who have savings in rubles, postpone or abandon the purchase. However, there are those who understand that due to the unclear situation is better to keep savings in real estate .
Now think about it, not only people from the former Soviet Union, but they themselves Bulgarians and Europeans. Last year, not only in Russia but also in Bulgaria in the other EU countries seems to be stable banks “burst.” Probably because of the unstable geopolitical and economic situation, the last quarter of 2014 and now in 2015 there is a trend of increasing demand for Bulgarian property from Kazakhstan, themselves Bulgarians, Macedonians, Romanians and EU citizens. All this has led many people to reconsider, and we see now everything, even those who have very little savings, they want to invest in real estate. Moreover, that real estate in Bulgaria and provides a stable income, bearing in mind that this country is one of the most popular tourist destinations .
The bad news is that people find it possible to buy a house with a plot for € 7 thousand, thinking about Bulgaria as a cheap country. Firstly, the euro exchange rate against the ruble is constantly growing. And the apartments in Bulgaria are sold just for this currency. Secondly, the income of Russians is not only growing, but depreciated by inflation, global economic crisis and sanctions. Third, the real estate in Bulgaria can be considered cheap only in comparison with the prices of real estate in large Russian cities. But if, for example, in the early summer of 2014, having sold “kopeck piece” in the panel house on the outskirts of Moscow, it was possible to buy a gorgeous two-bedroom apartment business class with expensive furniture and household appliances in the prestigious residential complex with a developed infrastructure of any city on the Bulgarian coast , now it can be done. And not because that property prices in Bulgaria have increased, but because housing prices, for example, in Moscow declined and are not tied to an ever-growing rate of the euro.
Considering that from June to December 2014 the ruble against the euro depreciated by almost 40%, and the apartment in Bulgaria will now have to choose on the basis of the reduced purchasing power. The decrease in property prices in Bulgaria are planned. The experience of the crisis of 2007-2008 showed that property prices in Bulgaria in the period just stopped growing, but not reduced. And the results of 2014 registered an increase of 5.3%.
So I would not say that the number of transactions decreased, on the contrary, the number of willing to invest in real estate is increasing every day. Oyunako budget buyers declined. Thus, the deal is, but they are on a lower budget. This, of course, suggests that people invest the last penny.
Only in the last quarter of 2014 the Russians invested in investment properties in Bulgaria as much money as the previous nine months of the year. That is to count on a global drop in real estate prices in Bulgaria following the decline of the ruble, unfortunately, is not necessary. Therefore, if the plans were buying an apartment in Bulgaria, it is better not to postpone it. If you have savings in foreign currency, and with them the desire to do something, it is better to convert them into buying an apartment in Bulgaria. Especially in this country have access to cheap mortgages to foreigners, and in the calculation of the seller of real estate – convenient payment plans. And even have the opportunity to purchase housing at a fixed rate to the euro.