The pandemic that hit us has caused consequences in every field, also affecting the real estate market, all over the globe. Consequences have mainly affected people's behaviour and their way of reacting to the economic crisis.
The real estate market has suffered greatly throughout the world, hitting on the one hand those countries that already had a precarious situation by completely eliminating it, on the other countries have resisted. So, looking at property for sale abroad is still worthwhile?
Research carried out by experts shows that it is still interesting to think of a foreign real estate investment. It is right to think about buying a house outside your country if the city taken into consideration meets our needs, it may be worthwhile to buy an apartment in the coming years for various reasons: to make an income or for children who intend to move abroad or even to spend the holidays there.
The epidemic has stopped some segments in the real estate market, but for this very reason they could offer great opportunities
Europeans prefer to buy a house abroad for second homes
Statistical analyzes show us that in the last twenty years Europeans prefer to buy houses abroad and not in their native countries. Why this trend? Basically, different reasons:
• The taxation on the first house is among the cheapest on the market, but on the second and third houses it is more expensive than in other countries;
• Buying a house in Europe means facing long bureaucratic processes that risk losing the desire to invest in real estate;
• The foreign market offers more possibilities, precisely because it is bigger;
• for work or for studies;
• It is possible to think of a real estate rent, that is, to rent it, to have an extra income;
• Retirement after working life.
The last reason is the one that finds the most success among Europeans. Buying a house abroad implies accessing a permissive property tax regime compared to others, which since 2008, after the world economic crisis, has firm taxation at very high rates, with no hint of reducing.
Buying a house abroad: where is it worth investing?
There are many places beyond your own country where it is convenient to buy a second home. There is no precise and unique motivation for everyone: it starts from those in which there is a thriving real estate market, to those looking for countries with a strong economic drive and growth to those that have a lower cost of living compared to that Italian.
Research done by experts, state that 2021 is obviously an anomalous year with purchases blocked by Covid-19. Many countries where folks normally used to buy (such as the United States and South America) are closed. Others such as France, Spain and Greece have severe travel restrictions. Our estimate for the end of the year is far fewer purchases than the previous two years.
If you are willing to buy a house abroad, go to Spain. The data see Spain on the podium, which in recent years has been increasingly growing in interest. In fact, its share has undergone great growth in the real estate market which started from 15% in 2010, the year in which Spain saw a reduction in apartment prices to thirty per cent, up to 60% in 2020. A country that it is also in first place for the convenience of mortgages with an average fixed rate of 1.5 per cent, which has undoubtedly helped the increase in prices.
The cities with the most demand are undoubtedly the metropolises such as Barcelona and Madrid, which in addition to being tourist destinations are those in which transfers for studies are most concentrated. Andalusia is seeing particular financial growth.
If we then talk about the islands, on the podium for convenience we find Gran Canaria between the Canary Islands, Mallorca and Menorca.
We point out that if you intend to buy a house abroad in Spain, the Spanish government gives you the possibility of having a permanent residence permit if you buy properties from 500,000 euros upwards.
According to experts, one of the highest rates of purchases for foreign homes is concentrated on the Greek islands. Probably given the slow recovery of the country recovering from the heavy economic crisis that hit it, seeing over 30% of the reduction in real estate costs.
The investment destinations are:
• Cyclades archipelago: Mykonos, Santorini, Ios
• Ionian Islands: Corfu and Kefalonia
There is no need to be enchanted by the spectacular Athens, which has very high mortgage rates of up to 5.5%, despite the fact that apartment prices are significantly reduced.
Eastern Europe: Romania, Bulgaria, Poland
These nations have a very low cost of living, which allows great opportunities to buy a house, taking advantage of the favourable exchange rates in our favour.
In Poland, many bargains can be found in the capital in Warsaw, Krakow or Czestochowa. In Romania in Bucharest, Constanta or Iasi. In Bulgaria, you can find business in the capital Sofia, in Burgas or in the city considered to be the oldest in Europe, Plovdiv.
A nation with good economic and political stability. Despite the fires and fires that hit it in 2019 and early 2020, it remains among the most popular destinations for overseas home purchases.
Metropolises such as Sydney or Canberra are the most chosen because the growth of the entire country is more concentrated. It is a nation on which a lot is focused above all to live and invest, given that the growth prospects in real estate are quoted at ten per cent by 2022.
Since 2000 it has experienced economic growth linked to tourism. Overlooking the Caribbean Sea, it has also opened the market to foreign real estate purchases.
The destinations: the capital Santo Domingo, Santiago de los Caballeros and San Cristobal. Cities where, for example, it is possible to invest in villas on the sea for 40,000 euros, figures equivalent to the cost of living.