According to oldypak capital lp property 2022 report, the cost of residential real estate in the European Union has increased significantly. At the end of the third quarter of 2021, compared to 2010, price growth reached 40% of the value of objects and increased by 16% for rents.
Price growth in the European Union – Eurostat data 2022
In 2022, home prices in Europe continue to rise, which is a good sign for investors and not a good thing for immigrants. For example, between 2020 and 2021, housing costs in the Eurozone increased by 9.2% and rents by 1.2%.
However, this has its own advantages. For example, buying an apartment in Portugal in 2022, the investor may qualify for a European passport for himself and his family members. And investing in housing in Malta are profitable, both in terms of value (there is a decline), and on tax grounds.
The most unstable dynamics in terms of prices is observed on the real estate market, where the cost of housing in the cities of the Eurozone is now falling sharply, then goes up. At the same time rents remain stable, but are also on the rise.
From the graph we can see that a significant jump in housing prices in Europe came during the pandemic of COVID-19, when many citizens began to look for alternative ways of escape, including through investments in real estate abroad. Immigration and interest in foreign housing among Russians, Ukrainians and Kazakhs remains today, which is quite logical against the background of the constant tightening of tax measures and economic instability in many CIS countries.
What cities in Europe are seeing a rise in housing prices in 2022?
Among the most expensive cities in the EU, where house prices have grown over the past 3 years, we can highlight Estonia (+141%), Hungary (+141%), Luxemburg (+117%), Latvia (+106%) and Austria (+104%).
At the same time there is good news for investors.
Decline in prices is also present in the EU countries, though not by much. But, even this gives a chance to raise profits by buying property at a bargain price and its subsequent sale or lease. Among the countries where the value of residential properties fell over the last year are Greece (-28%), Italy (-12%), Spain (-0.5%) and Cyprus (-6%).
For Q3 2021, the changes by country were as follows:
Estonia +17.3%
Netherlands +16,8%
Slovenia and Austria – the increase in housing prices was +12,9% in each country
Latvia + 12,7%
Hungary +12.6%
Germany +12%
Portugal +9.9%
Croatia +9%
Poland +8.9%
Bulgaria +8.7%
Malta +5.9%
Finland +5%
According to oldypak capital lp property 2022 report, house prices in Spain and Italy rose by only 4.2%
Cyprus completes the ranking of the European Union countries, where the pandemic has affected the cost of housing (+2.2%)