After continuous, and sometimes steep, increases in residential rents in major European cities over the past few years, prices now seem to have plateaued and are levelling out, the latest research shows.
Rents in European cities for studios, apartments and rooms are continuing to rise but the growth is beginning to slow, with levels down in the first quarter of 2019, the latest index shows.
The affordable housing gap reached some $740 billion globally in 2018 with Amsterdam, Auckland and Hong Kong amongst the least affordable places to buy a home.
Chicago may be freezing cold for parts of the year, but it has one big advantage over global cities such as New York, London and Hong Kong: it’s affordable.
The most expensive farmland in the EU is in the Netherlands, according to official statistics.
Amsterdam’s market is currently “very hot,” Mr. Wijnen said, with double-digit price increases annually since 2013 and “a big shortage of housing.”
As a result of the huge demand, paying the asking price, or even 10 percent above it, is “quite normal,” said Marianne Joanknecht, a broker and appraiser with Netherlands Sotheby’s International Realty, though in years past properties often sold for 10 percent below the list price.
Prices of homes under $1 million are up 20 percent over last year, she said; those of homes above are up 10 percent: “For every apartment under 500,000 euros” — about $570,000 — “there are 20 buyers; we have bidding wars.”
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
The housing market in the Netherlands, including Utrecht and especially Amsterdam, has been seeing significant price growth, brokers said.
“We have some regions in the Netherlands, especially around Amsterdam, our capital, where housing prices are exploding,” said Paul de Vries, a senior housing market economist with Rabobank Nederland. Some house prices have increased by around by 9 percent over the last year.
British people seeking to buy a property in the European Union should not be downhearted by the referendum decision that the UK should leave, according to overseas real estate experts.
Those who are looking to purchase a holiday home overseas, for example, are likely to see that owning a property in the EU will only be marginally more complex than it is currently, according to Andy Bridge, managing director of A Place in the Sun.
He pointed out that citizens of the United States, Canada, Russia and many other nationalities own properties throughout Europe, so while it may become slightly more complex for British buyers than currently, they are not going to be prevented from owning property in Europe.
Total investment volume into European commercial real estate in the first quarter of 2016 reached €36.8 billion, some 30% lower than the same period last year, the latest research shows.
However, several European countries analysed in the report from international real estate firm Savills are seeing increasing investment activity this year. Italy with growth of 54%, Sweden up 33%, Poland up 15%, the Benelux countries up 12% and Finland up 479%, have all performed well. The report says that the data shows that investor appetite is healthy for quality assets in markets with strong fundamentals.
In terms of sectors, industrial has gained ground, increasing by around 19% year on year. This was driven mainly by transactions in the logistics and distribution sector in the UK, Germany, Sweden, Spain and the Netherlands, which accounted for more than 80% of the total activity.
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