Europe’s booming real estate market is expected to continue increasing in value over the next year, as more Asian investors are attracted to the continent’s cities.
This is according to World Finance, which cited record levels of money being invested in property in global cities like Paris, Milan and London, all of which are particularly attractive for Asian capitalists. The dominance of these historic European cities in the global property market shows no signs of waning and has helped increase the value of the European market as a whole, creating a cycle of fruitful investment.
Although a new generation of outward-looking Asian investors is often credited with spurring on this trend, refinements to the industry have played a significant role. Europe’s real estate market has made significant regulatory improvements while also becoming more transparent. New investment protocols and performance indices have been introduced, and industry associations have been established alongside additional regulatory reforms. These developments have resulted in renewed investor confidence, so that investing in continental property is now regarded as a relatively risk-free option. Where one respected investor adds to their portfolio, others naturally follow.
The high demand for investment properties in these exclusive destinations has led to properties surging in value, with recent figures from Eurostat revealing that, during the first three months of 2015, house prices in the European Union increased by 2.5 per cent. In the euro area itself, prices rose by 0.9 per cent.
Romania experienced the biggest quarterly increase, with property prices in the eastern European nation rising by more than 4 per cent compared to the final three months of 2014. This was closely followed by Sweden, Hungary and Denmark, with recorded hikes of 3.9 per cent, 3.7 per cent and 3.5 per cent respectively. The largest yearly rises, meanwhile, were recorded in Ireland, Sweden, Hungary and Britain.
In separate findings from the Global Property Guide, it was also stated that house prices rose in 25 of the 38 world countries that have released their housing statistics for the first quarter of 2015. Three of the top five countries were European, with Ireland in first place, Estonia in third and Sweden in fourth. All three countries have registered impressive price rises, in some cases beating records set over ten years previously.
The good news for the continent doesn't stop there. A report published by the World Economic Forum found that 75 per cent of the most popular 25 countries for international investors are European, with the United Kingdom, Germany and France ranking among the top ten. The real estate sector has played a crucial role in attracting substantial foreign investment; the top-ranked country in Europe was the United Kingdom, which has repeatedly made headlines thanks to lucrative sales of prime London properties, often to overseas investors.
If you're interested in luxury residential or commercial property in Europe, contact Engel & Völkers. Our experienced agents are perfectly placed to guide you through your search and find the right investment for you.