Major events in the global real estate market in February. Editor’s choice
February 2023 was quite difficult and unpredictable. And it concerns not only the real estate market but also world events in general: earthquakes, market collapse, rise and fall of housing prices. The editorial team of REALTING has chosen the most.
Main news on the world real estate market
It is possible to buy a house for 1 euro in many regions of Italy. In 2023, another city joined the program — the small Italian town of Sant’Elia a Pianisi, Campobasso province, Molise region. The town has a population of about 1,800 people.
Because of the workforce shortage, Portugal is introducing a new visa that foreigners can apply for. The main difference is that with the new visa, migrants can enter Portugal once and stay there for 6 months (with the possibility of extending it for another 60 days) to find work. At the same time, Portugal has officially closed the program «Golden Visa».
Switzerland has followed the same path. Citizens from countries outside the European Union will now find it easier to get a job in Switzerland. The country has simplified the process of obtaining permits for residence and work for highly qualified foreign specialists.
Thailand is also trying to attract talented professionals to boost its economy. To that end, the country passed a new law on February 3 allowing foreigners to work in (or invest in) 18 sectors of the economy. The emphasis is on attracting highly skilled professionals, investors, and start-ups. But tourists will have to pay to enter the country.
Japan is not far behind in the fight for talent. It will soften the conditions for highly skilled workers from abroad. Now it will be easier for foreigners to obtain a Japanese residence permit.
Spain is also interested in digital nomads. Applying for a digital nomad visa in Spain is officially open. Now, under certain conditions, remote workers will be able to live and work in the country for up to 5 years.
You can read all the information on the Digital Nomad Visa around the world here.
Montenegro is preparing a new model of «Golden Visas» and plans to present it to the European Union. We remind you that 1.5 months ago the country canceled the program «Citizenship for investment» because of the EU recommendations.
But Lithuania imposes additional restrictions on obtaining second citizenship. Moreover, the country will accelerate the procedure for the loss of Lithuanian citizenship by those who acquire the citizenship of another state — the draft of such a law has already been approved.
By the way, dual citizenship and second citizenship are two different concepts. We will tell you what the key differences are, including examples of countries where multiple citizenships are forbidden in principle.
Kazakhstan continues to adjust and complicate the rules for foreigners. Recently we reported that the country introduced new conditions for foreigners to stay without a visa (you can read more here). Now Kazakhstan has changed the rules for obtaining a permanent residence permit.
February 1-4, our Realting team visited Ankara, the capital of Turkey, where the 3rd International Conference on Real Estate Development and Management ICREDM 2023 was held. The conference covered a lot of topics, including those related to construction and real estate, real estate ownership and use, land ownership systems, restriction of property rights and mitigation, etc.
Earthquakes are one of the most powerful and destructive forces on earth. On February 6, Turkey experienced the strongest earthquake in the history of the country, with more than 30,000 victims. If you want to help the victims, you can see all the information here.
The thing is that Turkey is one of the most earthquake-prone countries. And there are quite a few such countries in the world. We have learned where and why earthquakes occur, which countries are on the list of the most earthquake-prone, and what to do if you find yourself in a place where an earthquake is already happening.
Records and anti-records of the global real estate market
Demand for mortgages in Europe has dropped to a record low. The average rate of decline in demand for mortgages throughout the «Eurozone» was minus 74%. Such deterioration has not been seen since 2003, that is, since the beginning of these statistics. The strongest demand for housing loans «fell» in Germany and France: there is a decrease announced by 93% and 90% of banks respectively. By comparison, in Italy, the decline in demand was reported by 45% of banks, and in Spain — 20%.
By the way, in Germany, housing prices have also declined. With high-interest rates on mortgages, people simply can not afford their own property. To afford to buy property in Germany with an area of 90 sq.m., the monthly income of a family of three people must be € 5,000 (before taxes). By the way, a new ban on payments in cash and cryptocurrency when buying real estate came into force in Germany. Such measures are aimed at combating money laundering.
2022 did not end well for the Finnish real estate market either. Investment in the sector fell by 58% in the fourth quarter. Although the year began with the highest figures in history.
The situation is similar in the U.S. real estate market. Investors bought 45.8% fewer houses in America in the fourth quarter of 2022. That’s the biggest year-over-year decline in investor activity since 2000.
An interesting situation is in the Lithuanian real estate market. Here the sales of new buildings fell by 70%, while the price rose by a quarter. As for the secondary market, in Vilnius apartments with furniture in January 2023 were priced on average €135,000 euros, or € 2,600 per sq.m. Last January the price per square meter was 20% lower with an average price of €2,260 per sq.m.
But in Dubai, the real estate market continues to grow. In this case, the biggest buyers of real estate in the UAE in the third quarter of 2022 were Russians. Next in this ranking are buyers from Britain, India, Germany, and France. In an interview with Realting Alexei Slauta, the owner of the Address Property in Dubai, said that no slowdown in the market in the near future should be expected, as well as a drop in prices. However, we shouldn’t relax — the situation can change rapidly, and it is impossible to make accurate predictions.
The real estate market in Monaco is breaking records. Real estate sales in the Principality for the first time exceeded one billion euros. In 2022 there were 88 transactions for the sale of real estate in Monaco, while a year ago there were only 23. While real estate prices in Monaco are quite high if you consider that in dollars they have fallen by 20-25% in 2022.
The records of the Cyprus real estate market are no less impressive. January 2023 was a record month for Cyprus. For the first time since 2007, foreigners have bought more real estate than locals. Moreover, the number of buyers from outside the European Union has increased. By the way, if you want to move to Cyprus or buy an investment property there, you can learn all the details at a free webinar, which will be held on March 9. The main speaker of the webinar is Anastasia Yanni, a co-founder and managing director of Cyprus Sotheby’s International Realty.
Portugal is also surprising. The real estate sector here is under high pressure ─ the supply does not keep up with demand. To illustrate: there are nine sold houses for every one built.
Personal and useful experience
Recently a Belarusian girl Karina told us about her experience of moving to South Korea, you can read the text of this interview here. This time Togzhan, who moved to Seoul from Kazakhstan, shares her moving experience and impressions of life in South Korea with us. The main advantages of South Korea for her were: an eventful life in the city and convenient infrastructure. But Togzhan certainly considered the cost of housing to be a disadvantage.
More than 38 million people live in Canada, and most of the population growth is due to immigrants. For example, in 2022, Canada welcomed more than 437,000 new permanent residents. The country has also set a goal to welcome even more immigrants in 2023-2025. All of this speaks to the relevance of the topic of moving to Canada. Dmitriy, who immigrated to Canada in 2018, told us why he decided to move, what it took to make it happen, and what he has learned about life in Canada over time.
Renting an apartment in Warsaw is now a quest that not everyone can pass without help. The cost of housing is off the scale, the most favorable options «go» just an hour and a half after the ad, and owners require from the tenants almost dancing with tambourines. Realtor shared her personal experience in the Polish rental market and also told about the most unusual cases in practice ( about the woman with seven cats, and about brothels, and rooms of 19 square metres, which are leased as apartments).
How do I get into the Work and Travel USA program? How much does it cost to participate? How to choose a job and state? How is the salary paid? All important information from a person who has participated in the program twice is in our material.
A while ago, no one particularly knew about digital nomads (people who work remotely and constantly travel) but now they have become mega-popular. Realting found three digital nomads, and they told us how they live «out of a suitcase», what the pros and cons of this lifestyle are, and how much it all costs.
There are several countries in the world where you don’t have to (or almost don’t have to) pay taxes. Read this article to learn about tax havens and the benefits you can take advantage of.
Accommodation
A unique residential complex — Kalevi Panorama — is being built in one of the most picturesque areas of Tallinn. These are three high-rise buildings designed according to the latest technology, taking into account the highest requirements for thermal and noise insulation. According to the developer, the apartments here are secluded islands of personal space inside the modern city.
Montenegro began to attract more foreign investors, and in 2022 real estate here has become the leader of preferences. The stable flow of tourists, which only grows from year to year, forms not less stable demand for rent. That is why Montenegro is one of the most profitable countries to buy an apartment for rent. We have found 5 apartments at a price up to € 55,000, which will be very interesting to tenants.
In the real estate market, laconic and stylish houses with simple forms are appearing more and more often. Such cottages, due to their versatility, as a rule, suit any request of the buyer and therefore are in demand. This is the kind of stylish house we found in Georgia for only €125,792.
A while ago, an expert on the Georgian real estate market predicted that the era of low-cost housing will be over by 2025. Apparently, it has already happened before that, and now we see apartments for sale in Tbilisi for only €350,000. It is fair to say that these are really unusual apartments with a unique view of the city.
Real estate in Northern Cyprus has recently become very popular among investors. According to realtors, the era of low-cost housing here is over. However, it is still possible to find bargains, and we have made a selection of apartments in new buildings in Northern Cyprus, costing up to € 51,500.
In Latvia, people are actively buying land for the construction of private houses, but the demand is still there. About half of such transactions take place in the Pririzhie (Latvian: Pierīga), or Pririzhie statistical region. However, in these popular areas, land prices are relatively high: in the territory of Riga the average cost of land is € 80,000, and in the Pririzhie — € 50,000. In Jurmala, land for sale is even more expensive: the average price reaches €140,000. We made a selection of houses in Latvia, which you can buy right now.
Buy an apartment on the coast in the shade of tropical forests, isn’t it a dream? However, in most cases, such housing is really expensive, and not many buyers are ready for such a purchase. However, we found new buildings in Thailand, the cost of which starts from €37,630.
Outlooks for 2023-2024
At the beginning of the year, global market experts try to make some predictions.
Poland’s real estate market in 2022 was one of the most active in the world. However, high inflation, rising mortgage interest rates, and rising prices, in general, have caused the market to freeze by the end of 2022. Realtor and market expert Galina Kharlamova told Realting that now is the best time to bargain. However, we should not expect the prices of apartments in Poland to go down. There is a chance that on July 1, the country will adopt a new bill that will trigger a new «boom» in prices.
What is in store for Bulgaria in 2023? How resilient will this country’s economy be to all global shocks and what to expect from the real estate market in the next two years? The European Union has prepared a macroeconomic forecast for Bulgaria, and it looks like 2023 will not be an easy year.
Constantly rising prices, high inflation, and a decline in GDP growth in most EU countries, all of this directly affects the global real estate market. The European Union has prepared an economic forecast for the beginning of 2023-2024, and the situation appears to be better than expected.
The Realting platform is keeping up with the latest trends, and offered a chatbot developed by OpenAI to also make its forecast for 2023. According to ChatGPT, real estate prices will continue to rise, and housing in the suburbs will become even more popular. In this case, investors will increasingly consider real estate as the best way to preserve and increase their capital. In general, we did not see anything unexpected in the prediction of artificial intelligence.
Keep up to date with the latest news on the global real estate market on REALTING.com
