Real Estate News Digest: Europe Struggles, Grenada Wins

Germany

Freezeng of rental payments in Berlin has reduced the number of affordable housing by 40-60%

According to Bloomberg, with reference to the leading online real estate platform in Germany ImmoScout24, in September 2020, the number of residential units available for rent in Berlin decreased by 42% compared to a year earlier. And the number of properties built before 2014 affected by the new legislation fell by 59%.

Some Berlin government officials and tenant associations connect this drop with the pandemic, but the data from ImmoScout and other market watchers suggest otherwise. While the German real estate market came to a standstill at the start of the quarantine, major cities across the country are seeing more rental activity than last year, with the exception of Berlin.

In February 2020, the Berlin authorities introduced the so-called Mietendeckel, which is the rent limit, to prevent Berlin from going the way of cities such as London and New York City, where owners earn huge amounts of money from tenants. The government said the freeze was intended to give tenants "breathing space" while Berlin aims to ramp up construction to at least 20,000 new buildings a year, which should be more than four times than the 2010 level.

However, the law, which is currently being challenged in the Federal Court and risks being overturned in 2021, has spooked landlords. Some of them sell apartments rather than rent them out at discounted prices. According to ImmoScout, in September, the number of housing units for sale in the German capital increased by 13% compared to last year, and the number of such units built before 2014 – by 23%.

Those who can't afford to buy or don't want to buy property often face onerous contracts or deals in the grey market. To avoid losing income, many homeowners have begun requiring tenants to sign lease agreements with two different prices: one will apply, if the rent freeze continues, and the other, a higher figure, will apply retroactively, if the law is found unconstitutional.

France

The French compensate the lack of foreigners in the real estate market

The French realty market has seen decent growth in the past few months, as urban residents with expensive homes, especially in Paris, have sought to buy properties in rural areas, including in regions such as Poitou-Charente, the NY Times reports.

The main reason for this migration is the desire to have a place to move to in the event of repeated outbreaks of the pandemic. Also, according to experts of Prestige Property Group, more favorable loan terms affected the situation: a 10-year mortgage can be now obtained at 1.5-1.75% per annum.

Despite the fact that France was included in the list of the most popular countries in the world to buy real estate after the quarantine, the share of foreigners has significantly decreased. Many agencies noted a significant increase in transactions, but mostly with French citizens.

In June, foreign home buyers began to return as travel restrictions were lifted. Particularly high interest was observed from residents of large metropolitan areas, such as London, Geneva, Berlin, Amsterdam, Monaco. An additional driving force for the British buyers was the approaching end of the "transition period" of Brexit on December 31, 2020, as the French can make conditions more complicated.

According to a January report by Notaires de France, the share of non-resident foreign buyers in mainland France has been steadily declining since 2008, until it reached a low of 1.7% in 2018. Traditionally, the basis of foreign demand is China, Italy, the USA, Russia and the Middle East.

According to Notaires de France, in the first quarter of 2020, the average cost of existing homes and apartments in the region of New Aquitaine, which includes the now popular region of Poitou-Charente, was €1,730 per square meter. In Poitiers, the historic center of Poitou, the average price of second homes in the first quarter of 2020 decreased by 2.4% compared to a year ago to €160,000.

Grenada

Grenada made more than $40 mln via the "Citizenship by Investment" program in 2020

In the first six months of 2020, 161 main applicants and 328 members of their families received Grenada citizenship by investment. They invested $40.11 million in obtaining a passport, which is 34% more than in the same period last year. This is the best result in the history of the program. If the same trend continues in the second half of 2020, Grenada may set a fourth consecutive annual record for the amount of money earned on the program, writes Investment Migration Insider.

Only 18 applications were rejected out of 176 citizens in 6 months. On average, the application included one main applicant and two dependents, which was the same as the family size in 2019.

Since the minimum value of 28% in 2018, the share of applicants who choose the option of investing in real estate has grown steadily and now stands at 47%. This is 10 percentage points more than last year. However, in dollar terms, income from real estate purchases by investors already exceeds those from other investment options.

The Grenada program is a prime example of how smart and dynamic adaptation to current circumstances can serve to a record revenue even in the face of global restrictions and suspension of air travel. On March 18, Grenada announced that it would no longer accept paper copies of documents for the citizenship program and would process applications completely online.

United Kingdom

The most affordable cities in the UK have shown the best ratio of rental cost to monthly income

Only 21% of the monthly salary is required to rent a home in Durham, according to PropertyWire.

Available cities for rent are usually located in the North of the country, including Hull (23%), Stoke-on-Trent, Derby and Carlisle (24% of the salary will be spent on rent).

On the other hand, Oxford is the least affordable city to rent, where you need to give 66% of your salary to pay for rental housing.

The only exception between the North and the South is Manchester, which is the 8th least affordable city with a 39% income-to-rent ratio.

Surprisingly, Manchester is considered the least affordable city, although the city is in high demand among buyers and tenants of real estate. This leads to an increase in rent due to an imbalance in supply and demand. Some of the factors driving these problems are the current recession, COVID-19, increased taxation, new regulations, unemployment, and declining incomes. Despite the difficult sales market, the real estate rental market remains active and with limited supply, which allows you to keep rental prices at a high level.

Open Property Group does not recommend tenants to spend more than 30% of their salary on rent to maintain a decent standard of living.

Belgium

House prices and sales rise in the third quarter of 2020

The Federation of Royal Notaries of Belgium (FEDNOT) noted that overall real estate activity in the third quarter of 2020 was 11.6% higher than in the same period last year, writes The Brussels Times.

However, according to the report, the market has not yet returned to last year's level.The number of transactions in the first nine months of this year was 3.5% lower than in the corresponding period of 2019.

For the first nine months of 2020, average house prices in Belgium were €274,400, up to 4.7% from 2019. Although prices rose in all three regions, the smallest increase was in Brussels, where the average cost of residential property rose by 3.9% to €497,460. In Flanders, the average price exceeded the €300,000 mark for the first time in history, while in Wallonia it was still 25% lower than the national average.

The average apartment price also increased to €243,820, which is 6.7% more than in the corresponding period of 2019. This is the most significant increase since 2011, as the FEDNOT report says.

Check out available properties in Belgium:

637 000 €

Villa in Bruges, Belgium

257 sq.m

Belgium Bruges Beautiful villa with winter garden Living area of the villa: 257 m2 Total area 684 m2: large bright dining room, fully equipped kitchen, 3 bedrooms, winter garden, attic, English garden with gazebo, laundry room, utility room, basement, garage for 2 cars. Double glazing, parquet. Heating type: gas Price: 637,000€

INDOM

1 630 000 €

Villa in Bruges, Belgium

325 sq.m

Belgium Bruges Villa with a beautiful huge garden Living area of the villa: 325 m2 The total area of 6650 m2: dining room, kitchen, living room. office, game room. 3 bedrooms, dressing room, 2 bathrooms, basement, wine cellar, utility room, sauna, garage for 2 cars, shed, beautiful well-kept garden. Cadastral valuation: 762€ Price : on request

INDOM

1 300 000 €

Villa in Gent, Belgium

2500 sq.m

Belgium Ghent Cozy villa with swimming pool and Jacuzzi Total area of 2500 m2: 3 bedrooms, 2 bathrooms, summer veranda, swimming pool, Jacuzzi, fireplace, summer veranda, garage for 2 cars, telephone, beautiful garden. Parquet floor. Type of heating:gas Near school, Playground, shops, restaurants. Price: 1,300,000€

INDOM

160 000 €

Apartment in Gent, Belgium

70 sq.m 2

Belgium Ghent Apartments 20 km from Ghent Location: the old town of Aalste (Aalst), between the cities of Brussels and Ghent Apartment size : from 70 m2 to 100 m2 Number of rooms: 2,3, and 4 Year of construction of the house: 1997 It is possible to purchase a garage for an additional fee. Price of apartments: 160 000-220 000€

INDOM

379 000 €

House in Bruges, Belgium

598 sq.m

Belgium Bruges House with fireplace from Bruges The location of the house is very good: nearby there are shops, a vegetable market, a new shopping center, a school 50 m from the house, a public transport stop 800 m from the house. Year of construction: 1970 Living area of the house:202 m2 The total area of the house is 598 m2:living room...

INDOM

299 000 €

House in Bruges, Belgium

832 sq.m

Belgium Bruges One-storey house with a terrace in Bruges Year of construction:1966 Living area of the house: 155 m2 The total area of the house is 832 m2:large living room, fully equipped kitchen, 4 bedrooms, sun terrace, garden, garage for 2 cars. Price:299 000 €

INDOM

345 000 €

House in Bruges, Belgium

114 sq.m

Belgium Bruges New house with attic in Bruges Year of construction: 2004 Distance: to the public transport stop 100m, the school is 200 m away The total area of the house is 114 m2: 3 bedrooms, a terrace of 20m2, a laundry room. Type of heating:gas Cadastral valuation: 810 € Price: 345,000€

INDOM

429 000 €

House in Bruges, Belgium

596 sq.m

Belgium Bruges Cozy house with fireplace in Bruges Living area of the house : 193 m2 The total area of the house is 596 m2: large living room, dining room, kitchen, 3 bedrooms, garage, terrace. Heating type: gas Double glazing Cadastral valuation: 969€ Price: 429 000€

INDOM

390 000 €

Apartment in Bruxelles, Belgium

122 sq.m 3

Belgium City of Brussels Apartment near Jourdan Square Location: city center between Leopold Park and Fiftieth Anniversary Park, near Jourdan Square and all the necessary infrastructure facilities of this prestigious area - shops, restaurants, metro station, etc. The area of the apartment is 122m2: large living room, 2 bedrooms, fully...

INDOM

415 000 €

Apartment in Bruxelles, Belgium

140 sq.m 4

Belgium City of Brussels The apartment is next to St. Peter's Square.Catherine The apartment has a very good location: in the city center near St. Catherine Square and the shops, restaurants, boutiques, cafes and other necessary infrastructure facilities and public transport stops located here. The area of the apartment is 140m2:...

INDOM

445 000 €

Apartment in Bruxelles, Belgium

93 sq.m 3

Belgium City of Brussels Apartment in the Ixel district The apartment is after excellent repair, with a beautiful view from the balcony, located in the famous Ixel district. The area of the apartment is 93m2: living/dining room with fireplace and high ceilings, 1 bedroom, kitchen, bathroom, terrace. Price: 445,000€

INDOM

470 000 €

Apartment in Bruxelles, Belgium

181 sq.m 4

Belgium City of Brussels Large apartment in Ukkel district Location: the first high floor of a 6-storey building built in 1965, a good area of Ukkel near Winston Churchill Avenue, close to all necessary infrastructure facilities. The house is renovated. The apartment is located on the sunny side. The area of the apartment is 181m2:...

INDOM

490 000 €

Apartment in Bruxelles, Belgium

110 sq.m 3

Belgium City of Brussels Apartment opposite Jardin Du Roy Ixel district, apartment with a large terrace, in a house with a concierge and an indoor pool. The area of the apartment is 110m2: entrance hall, living room with fireplace, dining room, bedroom, fully equipped kitchen, bathroom with shower and toilet. Design finishing and...

INDOM

1 510 000 €

Apartment in Belgium

604 sq.m 8

Belgium Maaseik, Limburg province, eastern Flanders Prestigious penthouse with a covered terrace Penthouse suite in a modern residential low-rise building in the elite suburb of Maaseika, 30 km from Maastricht. The living area of the penthouse is 398m2: an entrance hall with a dressing room, a large living room with a fireplace, an...

INDOM

505 000 €

Apartment in Bruxelles, Belgium

137 sq.m

Belgium City of Brussels Apartment on Avenue Louise Location: the most beautiful part of the street, near the Chatelaine district. Year of construction of the house: 2010 3rd floor of a 4-storey building. View of the well-kept courtyard. The apartment is new, with an area of 137m2: living room, fully equipped kitchen, 3 bedrooms,...

INDOM

449 500 €

Apartment in Bruxelles, Belgium

130 sq.m 4

Belgium City of Brussels Apartment in a kindergarten in the city center The apartment has a unique location: in the very center of the city, just 2 minutes away. walking distance from the most beautiful square in Europe - the Grand Place. Within walking distance there are shops, restaurants, metro station, railway station. Year of...

INDOM

250 000 €

Apartment in Gent, Belgium

74 sq.m 2

Belgium Ghent Apartments in a renovated house near the railway station The location is excellent: near the railway station and with all the necessary infrastructure - shops, cafes, restaurants, schools and public transport stops. The house is after a high-quality restoration. Gas heating, double glazing, telephone. Each apartment has a...

INDOM

640 000 €

Apartment in Gent, Belgium

180 sq.m

Belgium Ghent Exclusive apartment in the historical center Apartment in a renovated building in the historical center of the city. Nearby there are all necessary infrastructure facilities: shops, cafes, restaurants. Heating type: gas Characteristic:fireplace, double glazing, parquet, Internet, telephone. Living area: 180 m2 Terrace of 8 m2...

INDOM

237 250 €

Apartment in Gent, Belgium

105 sq.m

Belgium Ghent Modern apartments in Ghent Location: Eeklo station area Nearby there are all necessary infrastructure facilities: public transport stops, shops, restaurants, etc. Living area: 105 m2 Terrace of 8 m2 Heating type: gas Additional information:double glazing, telephone Price: 237 250€

INDOM

169 000 €

Apartment in Gent, Belgium

73 sq.m

Belgium Ghent Apartments in the historical part of the city Location: the center of Ghent, next to the square. All necessary infrastructure facilities are located nearby. Cozy apartment in the historical part of Ghent. Living area : 73 m2 Type of heating:gas Price: 169 000€

INDOM

See more 21 similar properties

Photos: pixabay.com

Quoting conditions of Prian.info materials