Where it pays to invest in Europe

Where it pays to invest in Europe

Berlin, London and Paris are always a safe haven for investors

The real estate market of European capitals has been severely affected by the financial crisis that has discouraged investments, but there are some cities that still offer value-for-money opportunities and have succeeded in attracting the interest of potential buyers.

Berlin – the young, modern and eclectic German capital city – remains the most appealing investment spot for those looking for an apartment in Europe, thanks to the availability of attractive high-quality buildings and positive economic variables, such as the low unemployment rate and the rising incomes. In the neighbourhood of Charlottenburg – where the real estate market is booming – the price of high-level homes is comprised between 2800 and 4700 euros per square metre. Wedding has also a great development potential as Tegel airport is scheduled to be closed in October 2013, when all operations will be transferred to the new Berlin Brandenburg Airport.

The positive outlook of the German real estate market is due to the wise measures taken by the government to avoid the burst of speculative bubbles: the building activity has been carefully controlled. Prices are rising and the balance between incomes and real estate values will guarantee the stability of the housing market. The number of purchases is expected to increase and by the end of the year they’re expected to rise by 13%.

Some countries – England for example – have issued some ad-hoc laws to boost the recovery of the residential market. The English government has allocated £ 250 million to help first-time buyers get their foot on the property ladder and buy a brand new property with the assistance of an equity loan (whose value is a maximum of 20% of the full price of the home). Italian buyers are No. 1 investors in London. Despite the high prices, the demand for real estate properties in the English capital has not decreased, even if it is declining in the rest of the country. Notting Hill and Battersea are the most sought-after neighbourhoods. London attracts both long-term and speculative investments. Furthermore, social housing and high-level residences are perfectly integrated in the same complex.

Paris is always a very longed-for city – as it still grants good returns on investment – even if the recovery of prices that started in 2011 has now stopped. Mini apartments in the Marais neighbourhood are the most demanded property type. Prices, here, range from 8100 euros to 13 thousand euros. In the French capital, it is possible to buy 10-sq.m. flats that can be used as hotel rooms or holiday accommodation facilities.

Spain might be an interesting investment destination but the number of purchases is falling also in the most popular places such as the Balearic Islands – Majorca and Menorca – because the prices of real estate properties are still very high and call the attention of only a few high-budgeted families.

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