Our compatriots have always actively invested in European real estate. The Western market offers great opportunities: the purchase and lease of elite properties on favorable terms, affordable financing and full legal protection. And even in the current crisis, Europe still holds a strong position.
All pandemics out of spite
In the past 20 years of the 21st century alone, the world has experienced several serious economic downturns. And it is Europe that has been demonstrating enviable resistance to the consequences of crises all this time. Of course, for her "hard times" did not pass without a trace. But compared to Russia, Asian countries, and even the United States, during the period of economic depression, Europe retained and retains:
1) Relatively stable GDP growth. Recall that this is the gross domestic product, which reflects the market value of goods and services. Its performance is directly related to the economic situation in the country, including trends in the real estate market.
2) A low level of inflation - less than 2%, while in our country and in other countries it is at least 4% (and this is even in a good scenario).
3) Evenly developed infrastructure: that is, the main "benefits of civilization", which are in megacities, have a place to be on the periphery.
4) More or less stable labor market: in general, employment in the region is about 80%, and in our country this figure is 20% lower.
5) Favorable rates on residential and commercial mortgages from - 1 to 3% (in Denmark, for example, they are 0% at all).
6) More favorable financial conditions for entrepreneurs when looking for real estate for business. For example, buy retail space in Moscow somewhere in the center sometimes costs more than in a European metropolis.
Market prospects
It is clear that the crisis caused by the pandemic has outplayed a lot in Old Europe as well. Somewhere, the unemployment rate has risen significantly, somewhere inflation has increased and interest rates on loans have increased. But in general, it endured the situation with the coronovirus more easily than many other regions. Here, already in early May, consumer services enterprises, shopping centers and restaurants (of course, with partial restrictions) began to work. Accordingly, by mid-summer, the European economy somehow began to recover. At the same time, experts give at least a year for its full restoration. Nevertheless, significant “post-crisis” shifts have already been outlined in the real estate sector.
City to city does not fall
However, you need to understand that the real estate market operates locally. That is, not only in different regions, but even in different cities of the same country, he experiences the crisis differently. Even such “giants” as London and Paris have shown low GDP figures over the current time. But the following cities in this indicator became leaders:
— Amsterdam
— Vienna
— Stockholm
— Brussels
— Berlin.
In recent months, construction has been actively going on here and the maximum volume of transactions for the purchase and sale of commercial and residential properties has been recorded.
Not all real estate is profitable
However, in the light of the current crisis, selectivity must be shown not only when choosing a region, but also a market segment. Now it is clear to everyone: it makes no sense to invest in retail (retail outlets) and hotels in the near future. In some European cities alone, the total losses of trading companies amounted to $4 billion.And for the hotel business, this whole year has become a "dead season" at all. Russian realtors note: “In 2020, it turned out to be more profitable to rent in rent a room for a machine wash in Moscow than investing in a prestigious hotel.” A similar picture is observed in Europe. And it is difficult even to predict when the situation will improve.
Among the actual options for investing money, experts name: office space, premium warehouse complexes, as well as student dormitories and hostels. The first two segments are still in demand in Europe: due to the demand, they are quickly restored after quarantine downtime. As for hostels and hostels, they also promise good prospects for investors. The latter are a kind of alternative to classic apartments and hotel complexes. They offer affordable temporary accommodation for clients of various categories: from the same students to tourists who save on accommodation while traveling.
However, as analysts themselves emphasize, all these schemes are rather conditional. This information only gives food for thought: which cities and objects should be paid attention to first of all. But there were no exceptions either.Even in the most unprofitable region at the moment, you can find a profitable object for investment. Any good investor knows that every trade requires an individual approach and professional flair.
