European Property Market

RICS has launched the 2009 version of the European Housing Review with an event at the National Liberal Club in London. The Review is now in its eleventh year and draws together what is happening in residential property markets across Europe. It paints a gloomy picture of Europe’s housing market in 2008 and key points include:
• House prices are static or falling across Europe
• The chances of core European housing markets escaping marked downturns in 2009 are now slim
• House prices in 2008 fell significantly in 2008 in central and eastern Europe, Ireland, France, the UK and amongst Nordic countries
• Markets are experiencing rapid falling demand due to the impact of the credit crunch and recession in major economies
• New build markets in the major cities of central and Eastern Europe are at a standstill with a rising tide of unsold properties.
What can we do to address these problems? RICS is calling for action from Governments to increase the supply of mortgage lending. There must be more Government guarantees for mortgage backed securities, as recommended by the Crosby Review in the UK. Banks that have been nationalised or have greater levels of state control in the UK, Ireland, Germany and the Netherlands must also be used to provide a sensible increase in access to credit.
Other steps can also be taken including the establishment of Government supported savings schemes for first time buyers where buyers are encouraged to save a deposit which is topped up by a Government contribution. There must also be a greater use of shared equity and rent to buy schemes.

RICS published a 15 point plan in September 2008 outlining key measures we believe will help the residential property market.
Hopefully if action can be taken by Governments across Europe, the 2010 European Housing Review will start to show some signs of recovery.
http://www.rics.org/ASPNetForums/blogs/padefaultaspx/archive/2009/03/05/gloomy-housing-markets-across-europe.aspx

Distressed Sales, Repossessions, Short Sales and Foreclosures

Distressed sales, repossessions, short sales and foreclosures: the credit crunch has introduced a whole new vocabulary into buying property overseas. Thanks to the economic downturn, property markets around the world are being flooded with properties now available that have been priced competitively low in order to achieve a quick sale. Even considering the weak pound, there are great bargain opportunities in Spain and Eastern European cities, Florida and some parts of the Carribean and Dubai - see all the usual websites. If you are in a position to buy comfortably but are new to the overseas investment arena you can sometimes get the best advice and a real feel for the market by looking at the web forum discussions on the issue. But if you want to talk one on one with the seller who is trying to offload before repossesion check out the holiday and house price forums where shouts for help and advice on escaping an investment nightmare are all too common this year.

The Top 10 Countries to Buy Property in 2008

Theres always a new list of top ten property investment destinations. Thuis one is from http://www.rodthomasblog.com/. They are always worth a look whether it is for ideas or confirmation that you did the right thing!

The Top 10 Countries to Buy Property in 2008

Where was the hottest spot to buy property in 2008? As 2008 has just ended, that makes us wonder where the year has taken the property investing world. There have been a great number of ups and downs and 2008 has been financially challenging for many countries. So where have the Brits been buying when buying abroad? Is it worth it to invest in countries that are showing economic hardship?

Could this be an opportunity to take advantage of and get a good market deal? So many questions arise when you begin to talk of such topics. Europe has some great countries for investing and if you’re looking to broaden your portfolio with some new properties, here are 10 countries to consider:

Bulgaria- This country really hit the map in 2007 and since then has continued to grow in popularity for investors. Both foreign and domestic investors alike are joining in the rage of Bulgarian property and now are a great time to get in on the action before it’s too late. This is a great time to buy for short to medium term projected growth.

The Belgravia, Lozenets, Sofia.
Studio Apartments
Price: €73,766



Croatia- Here’s another European country that’s making its way on the map as far as investment properties go. This is a great opportunity for commercial as well as residential properties and it is projected to do well into 2009 also. There is also a strong tourism market in Croatia, adding to the reasons to choose this country when expanding your property portfolio.

Cyprus- This country is on the surge of growing property prices and there is no sign of it dropping anytime soon. This is one reason it’s a hot choice for investors looking to build their properties abroad. You are virtually guaranteed to make your money back and some when you buy in Cyprus.


Czech Republic- There are many cities in this country that offer wonderful opportunities for investors. Whether you’re looking to buy and rent or resell, you will find profits in this country. Property price growth and rental prices have steadily went up in past years and throughout 2008.


Estonia- In and around the capital of Tallinn there are many real estate opportunities for someone looking to grow in 2008. Local demand and prices are rising making 2009 a profitable year for Estonia and those who invest in it.
Hungary- This is a country that’s been steadily growing since the early 2000’s and 2008 looks to also be a profitable year for those who invest in it.

Latvia- The economy of Latvia is one of the fastest growing in Europe making it a hot investment choice for real estate. They are also expected to receive one of the five largest wage increases in the world. This boom in the Latvian economy means more money for people to buy or rent properties.

Poland- Here’s another nice choice for investing in 2008. This country is currently undergoing growth with the help of the European Union and this is a fine time to get in on the profits this growing country has to offer.

Gorczewska Park, Poland, Warsaw.
1 bedroom Apartments, 47sqm
Price: € 132,418



Romania- This is an exciting country with low real estate prices and a great number of exciting, creative properties available. It’s more than worth it to check out properties in Romania.

Bonaire, Bucherest, Romania.
2 Bed Apartment, 108sqm.
Price: € 111,760


Turkey- Prices of Turkey property are going up which is good news for investors who want to get in before ’08 is over and see profitable turnarounds in ’09 and the years to come.

Astrum Towers, Istanbul, Turkey.
1 bedroom apartments 34 sqm.
Price: € 44,438

As sterling struggles, Britons are selling their places abroad to buy cheaply at home in the UK

Zoe Dare Hall for the Daily Mail reports that prices of holiday homes across the Continent have been plummeting as the tap of British buyers was abruptly switched off last autumn.

New- build properties marketed purely for the British and Irish markets are the worst hit, but anyone owning a holiday home that might appeal to local buyers will clean up given the collapse of sterling against the euro .

Foreign exchange specialist Caxton FX reports an 89 per cent increase in the number of British clients repatriating funds in the past three months of last year - mainly from people selling Spanish holiday homes. People are discounting their properties by 20- 25 per cent, as they can recoup the difference when they transfer their funds back to the UK. The falling pound has presented an excellent opportunity for buyers repatriating money.There are also a high number of transactions from British holiday home- owners in France, where property prices have remained more stable than elsewhere in Europe.The Algarve is also seeing high numbers of British homeowners willing to take a hit on their asking price if they are bringing their euro profits home.