The main events of 2019 that influenced foreign real estate market

The main events of 2019 that influenced foreign real estate market

01.03.2020 10:00

Stability prevails over the risks

In 2019, the sustainable trend of the buyer’s market was a clear priority of stable investments over high but risky profit. Today, the «invest and not lose» principle prevails on the market. Buyers are more interested in obtaining a residence permit, permanent residency or getting another country’s citizenship, and real estate investment to get passive income.

The growth of economic immigration

More and more countries offer «Golden Visas» for wealthy people. In 2019, the programs of Portugal, Greece and Turkey got the biggest interest, as well as the Middle East. Saudi Arabia introduced «Golden Visas» for investors, the UAE opened unimpeded entry into the country for expats who want to invest a great amount of money into its economy. There are many clients focused on the implementation of development projects abroad or investment property purchase.

Economic migration control

The European Commission has exerted unprecedented pressure on Cyprus, Bulgaria and Malta demanding to adjust the conditions for obtaining the «Golden Visa». A month later, Cyprus stopped resisting and made additions to the rules for getting citizenship for investments.

The rental market is under control

The authorities of popular among tourists countries defend the rights of long-term lessees. In Spain, the government sets a base index of rental prices. Berlin planned to freeze rental rates for 5 years and had made amendments to the legal system by the end of the year. Paris will be the next one.

Mortgage VS deposit rates

Low-interest rates are beneficial for consumers but not banks. As a result, the requirements for mortgage lending are tightened. At the same time, low-interest rates are excellent motivation for European citizens to invest in real estate.

Money withdrawal limit in China

In China, the local authorities have banned the withdrawal of more than $50 thousand a year for one person. This restriction has affected many countries since Chinese investors are quite actively buying real estate all around the world.

Price trends and forecasts

The Global Property Guide company has analysed data for the period of 2018-2019 taking into account inflation figures and presented a rating of countries based on their real estate price growth. The main trends remain: the market is growing in Europe and falling in the East, North America, and Asia-Pacific.

Portugal

Portugal is a leader among European countries in the growth of real estate prices. The country was ranked the 3rd in the annual Global Property Guide rating, second only to Germany among European candidates. In 2019, property prices in Portugal increased by 7.92%.

The real estate market in Portugal is showing a stable uptrend, which is a consequence of the country’s economic growth in general. This trend will continue in the future.

Perhaps, you got interested in a profitable real estate purchase in Portugal? Then choose your house, villa or apartment in Portugal among the best offers of the MENU Portugal company on a popular Russian portal of foreign real estate.

Photo: davidpradoperuchaShunga_Shanga

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