Real estate and immigration: the most significant events of the week

The continuing rise in housing prices in many European countries does not reduce the interest of foreign investors, among whom there are many Russians. True, unlike in previous years, the list of their preferences is topped by Turkey, where last August they bought more than 1,230 apartments and houses. Thus, they again turned out to be the most active buyers, far ahead of the citizens of Iran, Iraq, Kazakhstan and Ukraine.

The share of foreigners in the Turkish residential real estate market is about 4.5%, and in total they purchased almost 44,600 properties from January to August. These facilities are mainly located in Antalya, Istanbul, Alanya, Izmir and Mersin. Due to the growing interest of citizens of other countries in housing in Turkey, the country’s authorities plan to support the indigenous population with low incomes by building 500 thousand houses in the most popular locations. In Antalya, construction volumes have already increased – by a third more than last year, but this is not enough to satisfy the demand for housing.

In France, where, in general, prices for residential real estate are gradually beginning to stabilize, country houses are becoming more expensive. The undisputed leader in this regard is the department of Calvados, where in three years they have increased by a third. This is largely due to its favorable location, warm climate and the presence of comfortable beaches. It is no coincidence that the main buyers here are residents of Paris, as well as Le Havre and Caen.

Country houses are also rising in price in Bulgaria, where there is a tendency for young families to move from large cities closer to nature. The cost of such objects varies between 40-100 thousand euros, most of them are located near Sofia, Veliko Tarnovo and Stara Zagora. In the case of Sofia, the main buyers are Bulgarian citizens, and the settlements located next to the other two cities are preferred by Germans, Dutch, Danes and Poles.

One of the few countries where apartment price growth has slowed sharply is Germany, which could be seen as another sign of a slowdown in the local housing market. In the second quarter of this year, they grew by 2.2% year on year, which is the smallest increase since 2018. At the same time, there is a decline in demand and volumes of housing construction.

In the foreseeable future, prices for residential real estate in Finland are expected to decline, the preconditions for which were noticeable last summer. Until the end of 2022, they will still grow, but next year the reverse process will begin, and as a result, housing prices may fall by 1-3%. Demand for apartments and houses in Finland will decrease. if the country’s authorities decide to close it to Russians who own real estate here. In the summer, Russian citizens were among the most active investors, buying residential properties even at clearly inflated prices, and their withdrawal from the market is unlikely to go unnoticed.

Along with the rise in real estate prices, 2022 will be remembered for the increase in the minimum threshold for participation in programs for granting residence permits and citizenship in several countries at once. This first happened in Portugal, which was known in advance, although the local program continues to be popular with foreigners, and by September it brought in almost 400 million euros to the treasury, up 34% on the previous year. They did not lose interest in Turkey, where the lower limit was raised from 250 to 400 thousand US dollars.

However, in Greece everything may turn out to be completely different, since before this it offered the most profitable and accessible program in the EU, and now it will be inferior to its competitors. The fact is that Spain and Portugal provide the opportunity to obtain citizenship faster, and the Greeks, in addition to raising the minimum threshold to 500 thousand euros, are also considering the possibility of introducing a ban on the acquisition of two or more real estate properties for the same amount.

The price of a residence permit in Andorra, which is issued to investors in the local economy (including real estate), has also risen in price exactly twice – up to 800 thousand euros. In addition, the requirements for the financial solvency of candidates have become more stringent: they will now have to demonstrate a permanent income of 50 thousand euros instead of the previous 15 thousand.

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