european housing report - re/max€¦ · estonia – rising salaries, more private investment, and...

2016

European HousingReport

EuropeanSummary

Source: Survey of European RE/MAX independently owned and operated regional sub-franchises.

+44%AVERAGE DIFFERENCE IN m2 SALES PRICE FOR HOUSES URBAN VS. RURAL AREA IN 2016

PAGE 02Source: RE/MAX pan-European consumer survey, January 2016. www.at-home-in-europe.eu

61%OF EUROPEANS OWN THE HOME THEY LIVE IN

+64%AVERAGE DIFFERENCE IN m2 SALES PRICE FOR APARTMENTS URBAN VS. RURAL AREA IN 2016

RURAL URBAN

RURAL URBAN

Good loan conditions and incentives — especially for first-time buyers — high demand, and growing prices will shape the European real estate market in upcoming months.

We’re seeing low interest rates, and therefore cheap loans,

in almost all European countries currently. Favourable eco-

nomic conditions are leading to active real estate markets.

New properties are being built, for example, in Slovakia and

Estonia, while in Malta, the rental market is getting stronger

thanks to a growing number of foreign employees living on

the island. Markets like Portugal, Greece, and Scotland are

recovering well, showing clear signs of improved stability

and increased transactions in the future.

In general, sales and rental prices increased between 2015

and 2016, especially for properties in cities, where square

meter prices rose dramatically. In some cities in Lithuania,

Germany, and Luxemburg, for example, the increase of

sales prices for apartments was as high as 13 %. Further

increase is expected, except for France, Greece, and Swit-

The RE/MAX Europe Housing Report functions as a brief overview of the European real estate market and its current

and future price developments for residential sales and rental properties. All numbers are average and approximate

figures sourced from internal RE/MAX data and general market data for each respective participating country.

zerland where prices should remain steady in 2017. Sales

prices for houses in the countryside have grown as well,

and are expected to further increase in 2017 by about 4 %

in Austria and Estonia. Rental prices also rose in 2016, by

10 % for urban apartments in the Netherlands, Romania, and

Spain, and by as much as 16% in Malta. For most countries,

property rental prices are forecasted to increase further or

hold steady next year.

Location is still one of the most important criteria for price

differences; average sales prices for apartments differ by

as much as 64 % between properties in urban areas or the

countryside. For houses, the difference is as high as 44 %.

While mixed areas are expanding in countries like Germany,

in Italy, young people prefer the central areas of major

cities to reduce their commuting time.

Austria – Low interest and high demand has made a boom market in Austria, with urban apartments expected to have the largest sales price increase in the country.

In 2016, the sales price for apartments averaged 207,998 Euros in urban areas and 182,823 Euros in the countryside. House prices in cities averaged 463,248 Euros, with distinctly cheaper prices found when buying in the countryside. The increase from 2015 is especially high for houses (up 9.1 % in urban

areas per square meter). With sales prices forecasted to rise by 5.9 % in 2017, urban apartments are expected to have the highest price increase in the Austrian real estate market.

Rental prices for apartments in cities are expected to increase by 4.1 % in 2017, as opposed to those in rural areas where prices are estimated to drop by 2 %. The rental market for houses is insignificant in Austria, both in cities and in the countryside.

PAGE 03Source: Survey of European RE/MAX independently owned and operated regional sub-franchises.

AUSTRIA

Euro/m2

2016

2015

2017(forecast)

3,503

Houses Apartments

Capital/Urban Region Countryside

3,822

2016

2015

2017(forecast)

2,345

2,190


3,442

3,384

2,906

2,774

10.50

10.30

7.30

7.20

9.50

9.30

7.50

7.50

AVERAGE SALES PRICE

AVERAGE RENTAL PRICE

SALES PRICES AND RENTAL PRICES

2.0%

2.0%

4.1%

2.5%

5.9%

4.1%

-1.3%

-2.0%

Austria

Source: Population and value of real estate activities vs. GDP: Eurostat, February 2017. http://ec.europa.eu/eurostat, Average mean wage: www.wikipedia.org

AUSTRIA

POPULATION

8,700,471

REAL ESTATE VS. GDP 2015

9.0%

AVERAGE NET MONTHLY WAGE

€ 2,009

€ 3,550,000 MOST EXPENSIVE RESIDENTIAL PROPERTY

SOLD BY RE/MAX IN 2016 VIENNA 1130

Shorter supply Demand for properties continues to be very good Generally increasing

prices A positive market environment thanks to low interest rates and lack of alternative

investment opportunities

FUTURE TRENDS

PAGE 04Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn‘t convey absolute search volume. Source: Google Trends (Category real property listings), March 2017. www.google.com/trends

100

75

50

25

0

Land

House

Apartment

According to Google Trends, in Austria the relative popularity of the search term “Haus” (house) is on average 60 % higher than of the term “Wohnung” (apartment). Over the past five years both terms had the same seasonal va-riation with search volume reaching highs during the summer periods, while searches for “Grundstück” (land) remain relatively low throughout the year.

GOOGLE SEARCH INTEREST

2012 2016201520142013 2017

The Czech Republic

PAGE 06PAGE 05



Euro/m2

2016

2015

2017(forecast)

1,481

Houses Apartments


1,525

2016

2015

2017(forecast)

503

494


2,218

2,112

788

750

6.00

6.00

4.00

4.00

6.34

6.25

4.18

4.15

AVERAGE SALES PRICE



3.0% 2.0% 5.0% 5.0%

The Czech Republic – A growing market with increa-sing sales prices leads to 8 % RE/MAX market share.

In 2016, sales prices for apartments in urban areas reached an average of 2,218 Euros per square meter, but only 788 Euros in rural areas, a huge price gap of 181 %. This is a 5 % increase over 2015 and both price levels are expected to rise an additional 5 % in 2017. Sales prices for houses will also increase, but not as strongly.

The rental market is more stable. Urban apartments could be rented in 2016 for around 444 Euros per month and 295 Euros in the countryside. Rental prices for houses are typically more expensive; renting a house in the city in 2016 cost an average 1,050 Euros per month, while the average rural price was 793 Euros. Rental prices are expected to remain stable in 2017.

THE CZECH

REPUBLIC

POPULATION

10,553,843


7.6%

€ 2,666,666 MOST EXPENSIVE PROPERTY

SOLD BY RE/MAX IN 2016 PRAGUE − COMMERCIAL

Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn‘t convey absolute search volume. Source: Google Trends (Category real property listings), March 2017. www.google.com/trends

100

75

50

25

0

Land

House

Apartment

In the Czech Republik, the search term “byt” (apartment) is more popular than the search term “dům” (house), while the relative search volume for “pozemek” (land) is rather low. Searches for all three real estate terms sometimes overlap, though, and are extremely volatile.


2012 2016201520142013 2017

Reduced number of properties for sale Growing market Rising sales prices

FUTURE TRENDS


€ 824

Estonia

PAGE 08PAGE 07


Estonia – Rising salaries, more private investment, and good loan conditions have boosted sales prices in a favourable market for both buyers and sellers.

IIn 2016, a semi-detached house was sold for 160,000 Euros in urban areas, a strong increase over 2015. An urban apartment with 50-60 square meters could be bought for 88,000 Euros. Sales prices for apartments

and houses are expected to increase by as much as 6 % in 2017.

The rental market is more stable. In 2016, an apartment cost about 500 Euros per month in the city and 200 Euros in the countryside, with no change from 2015. Rental prices will rise at a lower rate for apartments and remain steady for houses.

ESTONIA

POPULATION

1,315,944


8.7%

Euro/m2

2016

2015

2017(forecast)

1,200

Houses Apartments


1,300

2016

2015

2017(forecast)

440

400


1,519

1,437

590

560

10.00

10.00

3.00

3.00

10.00

10.00

3.00

3.00

AVERAGE SALES PRICE



3-5% 4-6% 3-5%

1-2%

4-6%

2-3%


SOLD BY RE/MAX IN 2016 TALLINN − LAND PLOT FOR DEVELOPING

APARTMENT BUILDING

New apartment development in urban areas.

More transactions with new apartments.

Growing number of private investors purchasing rental apartments.

Good loan conditions (low interest rates, increasing turnover of new loans).

Favorable conditions for home buyers thanks to rising salaries and a low

unemployment rate.

Population increase in the capital Tallinn, but decrease in other regions.

FUTURE TRENDS

Source: Survey of European RE/MAX independently owned and operated regional sub-franchises. No Google Trends available due to lack of data.


€ 945

PAGE 09


Finland – Economic confidence means even more market growth on par with last year’s price increases.

In 2016, one had to pay an average of 240,000 Euros for apartments in the cities, compared to 110,826 Euros in the countryside, reflecting a moderate increase of 2.6 % and 2 % over 2015, respectively. Sales prices for apart-

ments in Finland are expected to increase in 2017 by 3 %, whereas sales prices for houses will only increase by 1 %.

Rental prices for apartments in urban areas are expec-ted to increase as much as 2 %, while prices should remain steady for all other types of properties regardless of location or size.

FINLANDFinland

POPULATION

5,487,308


10.9%


SOLD BY RE/MAX IN 2016 HELSINKI − BUILDING WITH SEVERAL

APARTMENTS

Strong consumer confidence in Finland’s economy.

Rising expectations of personal financial circumstances.

Optimistic assessment of unemployment solutions.

Significant growth expected in the real estate industry.

FUTURE TRENDS

Euro/m2

2016

2015

2017(forecast)

3,138

Houses Apartments


3,196

2016

2015

2017(forecast)

1,472

1,463


4,205

4,097

1,960

1,922

13.50

12.50

11.00

10.00

17.93

17.00

11.55

11.34

AVERAGE SALES PRICE



1.0% 1.0% 3.0% 3.0%

2.0%



€ 2,509

PAGE 11


France – Prices hold steady amid political and economic uncertainty.

In 2016, urban apartments sold for an average price of 5,440 Euros per square meter, a 2.6 % increase over 2015. All other sales prices have remained nearly flat in France and are expected to remain so in 2017.

Between 2015 and 2016, the average urban apartment rental price declined slightly from 22 to 21 Euros per square meter — a 4.5 % decrease — but remained stable at 7 Euros in the countryside. In general, rental prices are expected to remain steady in 2017.

FRANCEFrance

POPULATION

66,661,621


11.4%


SOLD BY RE/MAX IN 2016 PARIS (7TH DISTRICT)

According to Google Trends, in France people search three times more often for “maison” (house) than for “apartement” (apartment). Most searches take place in August, with expected dropoff in December. The relative popularity for “terrain” (land) remains low and static throughout the year.

GOOGLE SEARCH INTERESTEuro/m2

2016

2015

2017(forecast)

3,095

Houses Apartments


3,130

2016

2015

2017(forecast)

2,050

2,010


5,440

5,300

2,020

2,160

15.00

16.00

8.00

8.00

21.00

22.00

7.00

7.00

AVERAGE SALES PRICE



Source: Survey of European RE/MAX independently owned and operated regional sub-franchises.Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn‘t convey absolute search volume. Source: Google Trends (Category real property listings), March 2017. www.google.com/trends

100

75

50

25

0Land

House

2012 2016201520142013 2017

Apartment

Slight growth of real estate market expected Tax-related uncertainties due

to presidential election Increase of loan rates

FUTURE TRENDS


€ 2,157

PAGE 13


Germany – A large influx of relocations to the city makes for stunning growth in the rural rental market as the housing bubble grows.

On average, an apartment in a German city could be bought for 300,000 Euros in 2016, an increase of 11 % over 2015. Apartments in the countryside have sold for around half that price. Urban houses and apartments are expected to show rising prices of about 5 % in

2017, while sales prices of properties in rural areas will grow by just 2 %.

The high increase of rural square meter rents between 2015 and 2016 in Germany is remarkable: over 16.7 % for apartments and 6.7 % for houses. These are expected to increase slowly in 2017, but rents for urban houses could rise by as much as 4 %.

GERMANYGermany

POPULATION

82,162,000


9.8%


SOLD BY RE/MAX IN 2016 SYLT − VACATION HOUSE

Google Trends data shows the relative popularity of the search terms “Haus” (house) and “Wohnung” (apartment) constantly increasing over time, while searches for “Grundstück” (land) remain low and stable in comparison. There are slightly more searches for houses than for apartments, but both search terms follow the same seasonality, reaching their peaks in August.


2016

2015

2017(forecast)

4,000

Houses Apartments


4,200

2016

2015

2017(forecast)

1,850

1,700


3,700

3,300

1,700

1,500

14.00

12.00

8.00

7.50

10.00

9.50

7.00

6.00

AVERAGE SALES PRICE



5.0%

4.0%

2.0% 5.0% 2.0%

1.0%2.0%


100

75

50

25

0

Land

House

Apartment

2012 2016201520142013 2017

Low interest rates In Large Cities: Low supply but high demand for properties, Mixed

rural/urban regions continue to expand, Housing bubble grows In the Countryside:

Exodus from the countryside to the urban regions, Uncertain working conditions require higher

flexibility of housing choice

FUTURE TRENDS


€ 2,265

PAGE 15


Greece – After a lengthy contraction, the real estate market starts to bounce back with a stability in sales prices and a modest increase in rents, with more steadiness in the forecast.

In 2016, an apartment could be bought for average 92,200 Euros in the city and average 67,000 Euros in the countryside — a decline from 2015 of 1.9 % for urban apartments and an increase of 3.0 % for apartments in

the countryside. The forecast for 2017 is more positive, with hope for steady sales prices for apartments as well as houses.

Rental prices are growing, however, reaching between 530 and 450 Euros a month in 2016, depending on the location, for a price increase between 0.9 % and 2.3 %. Rental prices are expected to remain steady in 2017.

GREECEGreece

POPULATION

10,783,748


15.8%

Real estate prices are stabilizing after a long period of contraction, while the

number of transactions has been increasing since 2014.

Overall positive outlook, as risk of further market decline is marginal.

Investors from abroad are attracted by the relatively low prices and the

Golden Visa program.

Real Estate is still regarded as a good investment alternative, in combination

with attractive prices.

Banks are willing to offer loans, under strict preconditions of lending.

The Greek economy seems to be stabilizing with a positive outlook.

FUTURE TRENDS


Euro/m2

2016

2015

2017(forecast)

940

Real estate properties


922

2016

2015

2017(forecast)

670

650

AVERAGE SALES PRICE


5.30

5.25

4.50

4.40

No separate data per property type (house vs.

apartment) available.



€ 947

PAGE 17


Italy – While overall transactions have increased and rental prices grow, an uncertain political environ-ment has kept sales prices in decline.

During 2016 there was a slight decline in prices compa-red to 2015; house prices in the capital were an average of 204,990 Euros in 2016, compared to 212,025 in 2015. In this time period, and regardless of their location, sales prices of apartments and houses declined between

1.9 % and 3.3 %. Real estate experts hope for a recovery in 2017, with rising prices in urban areas and steady prices in the countryside.

The rental market, on the other hand, is showing price increases by as much as 1.3 % for apartments and 2.4 % for houses. In 2017, apartment rents are expected to increase further, but remain stable for houses.

ITALYItaly

POPULATION

60,665,551


12.5%


SOLD BY RE/MAX IN 2016 ROME − VILLA WITH SWIMMING POOL

AND PANORAMIC VIEW IN AN EXCLUSIVE RESIDENTIAL AREA

In Italy, the relative search popularity of the three property types is quite similar to France; people search on average for “casa” (house) more than three times as often as for “appartamento” (apartment). While searches for “terreno” (land) are low, relative search volume for houses and apartments show a typical low in December and has increased slightly over the past two years.


2016

2015

2017(forecast)

1,414

Houses Apartments


1,367

2016

2015

2017(forecast)

798

825


2,117

2,158

1,236

1,260

7.27

7.10

4.58

4.47

9.14

9.02

5.76

5.69

AVERAGE SALES PRICE



0-1.0% 0-2.0%

0-1.0%0-1.0%


100

75

50

25

0

Land

House

Apartment

2012 2016201520142013 2017

Italians start to see real estate as a valid safe-haven investment asset Convenient

mortgage loans with low interest 14 % increase in property transactions but prices still tend to

decrease Skepticism and lack of confidence in current government Young people again consider living in the central areas of major

cities to reduce commuting time

FUTURE TRENDS


€ 1,762

PAGE 19


Lithuania – A robust market with the highest prices since 2008 keeps booming in 2017, buoyed by higher salaries and low interest rates.

The Lithuanian real estate market is characterized by sharply rising prices for both sales and rentals. In 2016, an urban apartment had a square meter sales price of 1,325 Euros, nearly 14 % percent higher than 2015. In the countryside, prices increased more slowly but were still remarkable, with an average increase of

5 -9 %. Sales prices are expected to increase further in 2017, but only at 4 -5 %.

The monthly rental price for a rural house was about 310 Euros in 2016, and twice as much for a house in an urban area. At the same time, rents for apartments in the countryside went up by 14.8 %, but only by 9.1 % in cities. Rental prices are forecasted to remain steady in 2017.

LITHUANIALithuania

POPULATION

2,888,588


6.0%

€ 770,000 MOST EXPENSIVE RESIDENTIAL PROPERTY

SOLD BY RE/MAX IN 2016 VILNIUS − HOUSE IN VILNIUS OLDTOWN

Active real estate market with price growth.

Rising salaries, good consumer expectations, cheap loans.

Increased market demand.

50 % of property purchases are facilitated by cheap loans.

Property prices are 30 % lower than the highest pre-crisis level in 2008.

FUTURE TRENDS

Euro/m2

2016

2015

2017(forecast)

785

Houses Apartments


900

2016

2015

2017(forecast)

492

466


1,325

1,163

615

562

4.70

4.40

2.40

2.20

6.00

5.50

3.10

2.70

AVERAGE SALES PRICE



5.0% 5.0% 5.0% 4.0%



€ 637

PAGE 21


Luxembourg – Low supply and rising demand is pushing prices by as much as 22 % in all locations and property types.

Prices for sales and rental properties in Luxembourg have been increasing strongly over the past year and are expected to keep going up. While the average sales price for urban apartments was 7,091 Euros per square meter in 2015, it is now at 7,975 Euros, an increase of

more than 12 %. Apartments are cheaper in the countryside, but prices still rose more than 9 % per square meter. Sales prices for houses in urban areas increased by a sharp 22 % per square meter.

The situation is similar with rental properties, where prices increased for both apartments and houses in urban and rural areas. Further price increases between 5 % and 10 % are expected in 2017.

Luxembourg LUXEMBOURG

POPULATION

576,249


7.3%


SOLD BY RE/MAX IN 2016 MONDORF-LES-BAINS

Low supply vs. high demand.

Rising prices across all property types and areas.

Loans are not as easy to get as before.

FUTURE TRENDS

Euro/m2

2016

2015

2017(forecast)

5,251

Houses Apartments


6,383

2016

2015

2017(forecast)

4,160

3,884


7,975

7,091

5,626

5,156

19.14

17.83

14.64

13.35

24.12

22.81

20.38

19.46

AVERAGE SALES PRICE



10.0%

10.0%

7.0%

7.0%

5.0% 7.0%

3.0%5.0%



€ 3,009

PAGE 23


Malta – Limited stock, 93 % of ownership, and high demand from local and foreign investment are super- charging the market in Malta as it continues its evo-lution as a leading business hub in Europe.

Sales prices for apartments and houses in both urban and rural areas saw an average increase of 10% in 2016, compared to 2015. A restructuring of building laws to approve the construction of several multi-use high-rise

Malta MALTA

POPULATION

434,403


4.8%

€ 18,000,000 MOST EXPENSIVE COMMERCIAL PROPERTY

SOLD BY RE/MAX IN 2016 KAPPARA − HOTEL WITH PERMITS

FOR DEVELOPMENT

Property sales and rentals to increase due to government Global Residence and Citizenship by Investment programmes.

Rental market to grow through 2017 and beyond due to an increase in foreign employees.

New high-rise buildings to start development in towns of Sliema and St. Julian’s.

Rental investment to continue in both commercial and residential real estate.

First-time buyers to increase due to special subsidy on stamp duties throughout 2017.

FUTURE TRENDS

Euro/m2

2016

2015

2017(forecast)

1,999

Houses Apartments


2,201

2016

2015

2017(forecast)

1,350

1,200


2,101

1,900

1,337

1,200

6.20

5.57

4.80

4.50

7.50

6.50

5.20

4.50

AVERAGE SALES PRICE



3.5%

6.0%

3.5%

2.9%

3-6.0% 5.0%

6.0%6.0%



€ 1,021


SOLD BY RE/MAX IN 2016 PENTHOUSE IN ST. JULIAN’S

buildings, condominium complexes, and 5-6 star hotels to accommodate high demand will positively impact both property sales and rental prices in Malta.

Tax efficiency for companies, high net-worth individuals, residence holders, and highly qualified persons has attri-buted to an influx of foreign investment which creating a buoyant rental market.

PAGE 25


The Netherlands – After years of flat stability, the market is on the rise again across all market seg-ments, with high demand spurring more growth this year.

The real estate market in the Netherlands is fairly con- sistent between urban and rural areas. Prices for apart-ments in cities and the countryside rose more than 6 % since 2015 and are now at 2,296 Euros per square

meter. For houses, the average sales price is currently at 1,969 Euros. Prices are expected to go up further in 2017.

People in the Netherlands pay 22 Euros per square meter for rental apartments in urban areas and 13 Euros for those in the countryside. Compared to 2015, this was a price increase of about 10 %. The numbers are very similar for house rentals, which will increase again in 2017 by about 7 %.

The Netherlands THE

NETHERLANDS

POPULATION

16,979,120


5.3%


SOLD IN 2016 AMSTERDAM − LUXURY APARTMENT,

CITY CENTER OF AMSTERDAM, 1,250 m2

Google Trends show a tremendous gap between the relative search volume for “huis” (house) and “appartement” (apartment): the first term is nearly ten times more popular than the latter and shows continued growth over the past five years. The relative search volume for “bouwkavel” (land) is insignificant.


2016

2015

2017(forecast)

1,846

Houses Apartments


1,969

2016

2015

2017(forecast)

1,969

1,846


2,296

2,160

2,296

2,160

22.00

20.00

13.14

11.95

22.00

20.00

13.14

11.95

AVERAGE SALES PRICE



4.0%

7.0%

6.0%

2.0%

6.0% 5.0%

2.0%7.0%


100

75

50

25

0

Land

House

2012 2016201520142013 2017

Apartment

The Dutch market is picking up and developing positively High demand on rentals Government will lower the amount of social housing, which will

further fuel the rental market

FUTURE TRENDS



€ 2,263

PAGE 27


Portugal – Available loans and foreign investments are helping the market rebound after the country’s economic reorganization, with prices across seg-ments flat or rising.

The average sales price for an urban apartment was 193,861 Euros, with an average price per square meter of 1,330 Euros. This was an increase of more than 4 %

over 2015. In rural areas the 2016 average square meter price was 14 % lower, and both are expected to increase by another 3-4 % in 2017. Sales prices of houses are steady in the countryside and increasing in cities.

Renting a house costs about 6.50 Euros per square meter in urban areas and 4.50 Euros in rural areas. Prices are expected to remain stable this year.

Portugal PORTUGAL

POPULATION

10,341,330


10.6%


SOLD BY RE/MAX IN 2016 LISBON − BUILDING WITH

SEVERAL OFFICES

Compared to most other European countries, relative search volume for “moradia” (house) and “apartamento” (apartment) only differs by 17 %, with the latter being more popular. Search interest in “terreno” (land) is also relatively high. All three search graphs are very volatile and show steady growth since the beginning of 2015.



Euro/m2

2016

2015

2017(forecast)

1,050

Houses Apartments


1,100

2016

2015

2017(forecast)

1,026

976


1,330

1,272

1,143

1,095

6.46

6.22

4.52

4.49

6.45

5.95

5.25

4.90

AVERAGE SALES PRICE



3- 4.0% 3- 4.0% 3-4.0%


100

75

50

25

0

Land

House

2012 2016201520142013 2017

Apartment

Market is growing again after economic reorganization of the country Foreign investments are on the rise due to the government’s Golden Visa

Program to encourage foreign investment

FUTURE TRENDS


€ 984

PAGE 29


Romania – Regulations attract first-time buyers and fuel demand across all market segments, with prices expected to keep rising for years.

Home owners in Romania should invest quickly since prices are rising in both rural and urban areas. The aver-age sales price for an urban apartment was 1,150 Euros per square meter in 2016 and 1,080 Euros in 2015. A further increase of 8 - 10 % is expected. Rural apart-ment prices are cheaper at just 550 Euros per square

meter and an average sales price of 40,000 Euros. Sales prices for houses will rise in all areas by 8 - 10 %.

The rental market is growing across all property types and regions and prices will continue increasing over the next few years. The average rental price for an apart-ment was 440 Euros in cities and 200 Euros in the countryside. In 2016, the house rental price per square meter was a little higher than 5 Euros in urban areas and 3 Euros in rural areas.

Romania ROMANIA

POPULATION

19,759,968


8.5%


SOLD BY RE/MAX IN 2016 CLUJ-NAPOCA

In Romania, Google Trends show the relative search popularity of “casa” (house) is 3.5 times higher than that of “apartament” (apartment) or “teren” (land). While searches for houses have consistently increased over the past five years, the relative search volume for the two other terms has remained stable over time.



Euro/m2

2016

2015

2017(forecast)

800

Houses Apartments


850

2016

2015

2017(forecast)

550

500


1,150

1,080

550

550

5.50

5.00

3.00

3.00

5.50

5.00

3.00

3.00

AVERAGE SALES PRICE



8-10.0%

5.0%

5.0% 8-10.0% 5.0%

7-10.0%


100

75

50

25

0

Land

House

2012 2016201520142013 2017

“First House” government programme supports young people VAT changes expected

in coming months Risk of instability from turbulence in the new government

FUTURE TRENDS

Apartment


€ 505

PAGE 31

Source: Population: NRS, 2015. www.nrscotland.gov.uk, Value of real estate activities vs. GDP, Average and mean wage: Government of Scotland. www.gov.scot

Scotland – After a year of a 1.9 % decline in sales prices, the market is bouncing back for moderate improvements in 2017 with rental availability and pricing remaining strong.

In the past year, sales prices in Scotland have decrea-sed for apartments in both rural and urban areas. The average apartment sold for 153,598 Euros in cities and 167,302 Euros in the countryside, a roughly 2 % decrease per square meter. The sales prices for houses

are also on the decline, but a little less. While buyers had to pay 2,106 Euros per square meter in cities in 2015, it was 2,083 Euros in 2016. Prices are expected to increase by 3 – 4 % in 2017.

In the rental market the situation was different; prices on both apartments and houses have increased and are still going up. The average square meter price for a house in the countryside was 7 % higher than it was in 2015.

Scotland SCOTLAND

POPULATION

5,373,000


9.0%


Euro/m2

2016

2015

2017(forecast)

2,106 (£ 1,800)

Houses Apartments


2,083 (£ 1,780)

2016

2015

2017(forecast)

2,913 (£ 2,490)

2,948 (£ 2,520)


1,536 (£ 1,313)

1,570 (£ 1,342)

1,673 (£ 1,430)

1,696 (£ 1,450)

9.94 (£ 8.50)

9.36 (£ 8.00) 8.19 (£ 7.00)

8.77 (£ 7.50)

8.35 (£ 7.14)

7.10 (£ 6.07)

6.68 (£ 5.71)

AVERAGE SALES PRICE



3- 4.0%

5.0%

3- 4.0%

5.0%

3- 4.0% 3- 4.0%

5.0%5.0%

No Google Trends available due to lack of data.

The market is expected to show an increase in both home prices

and sales volumes for 2017.

Strong regional differences.

FUTURE TRENDS


€ 2,001

8.77 (£ 7.50)

€ 611,463,46(£ 525,000)

MOST EXPENSIVE RESIDENTIAL PROPERTY SOLD BY RE/MAX IN 2016

PEEBLES − SINGLE DETACHED FAMILY HOME

PAGE 33


Slovakia – Cheap mortgages lead to higher demand and prices for apartments, with house prices holding steady in all regions.

In 2016 the average sales price for an urban apartment was 157,500 Euros, but only 60,000 Euros for a rural apartment. Prices are expected to increase in 2017. For houses, sales prices are steady, with the average price per square meter holding at 1,520 Euros in cities and 510 Euros in the countryside.

Rental property prices have been increasing and will continue to grow by as much as 3 % for urban apart-ments, where the average monthly rent costs 750 Euros. Rentals remain steady, with prices for urban houses and apartments around 10 Euros per square meter and around 5 Euros for houses and apartments in the coun-tryside. There has been no major change since 2015.

Slovakia SLOVAKIA

POPULATION

5,426,252


5.9%


SOLD BY RE/MAX IN 2016 BRATISLAVA − LUXURY HOUSE

Cheap mortgages will increase demand and prices.

Real estate development is booming.

FUTURE TRENDS


Euro/m2

2016

2015

2017(forecast)

1,500

Houses Apartments


1,520

2016

2015

2017(forecast)

510

500


2,100

2,050

800

750

10.80

10.60

5.53

5.33

10.00

9.60

5.06

5.60

AVERAGE SALES PRICE



5.0% 5.0%

3.0%

No Google Trends available due to lack of data.


€ 755

PAGE 35


Spain – Prices for houses and apartments across the country show a steady market with potential growth from rising incomes, accessible financing, and the shifting political landscape in Europe.

Since 2015, sales prices for both houses and apartments have been increasing by about 4.6 % in urban areas, where the average price per square meter went up from

1,651 Euros to 1,727 Euros. Another increase of 1.8 % is expected for 2017. In the countryside, prices have increa-sed by only 1 %.

In the rental market the picture is different; prices per square meter went up by 9.8 % in cities and 7.7 % in the countryside. The average monthly rent was 880 Euros and 600 Euros, respectively.

Spain SPAIN

POPULATION

46,438,422


10.2%

According to Google Trends, in Spain the relative search popularity for “apartamento” (apartment) and “terreno” (land) is extremely low in comparison to “casa” (house); people search for houses nearly seven times more often.



Euro/m2

2016

2015

2017(forecast)

1,651

Real estate properties


1,727

2016

2015

2017(forecast)

1,174

1,160

AVERAGE SALES PRICE


1.8% 1.8%

8.80

8.01

6.00

5.57

1.8% 1.8%

No separate data per property type (house vs.

apartment) available.

Easy access to financing Positive evolution of household incomes BREXIT: positive effect as British citizens are largest number of foreign buyers

FUTURE TRENDS


100

75

50

25

0

House

Apartment

2012 2016201520142013 2017

Land


€ 1,718

PAGE 37

Source: Population: http://ec.europa.eu/eurostat, Average mean wage: www.wikipedia.org

Switzerland – With a mix of flat prices and declines, and limited access to financing, the overall real estate market is developing in unpredictable ways.

An average apartment in or around a Swiss city sold for 867,163 Euros in 2016, with almost no difference in square meter prices between 2015 and 2016. One had to pay 734,517 Euros for apartments in rural areas, 18 %

cheaper on average compared to urban areas. For houses, the price per square meter in urban areas was 29 % higher than in rural areas.

Over 50 % of Swiss residents rent their homes, mostly apartments, and rental prices are expected to remain steady or decrease in 2017. Only prestige properties in urban areas are expected to see increasing prices.

SWITZERLANDSwitzerland

POPULATION

8,325,194

€ 5,810,781(6,200,000 CHF)

MOST EXPENSIVE RESIDENTIAL PROPERTY SOLD BY RE/MAX IN 2016

BRIONE SOPRA MINUSIO (TI) − VILLA, 363 m2

In Switzerland, the vast majority of real estate searches on Google are in German or French. While relative search volume in German shows more interest in the term “Wohnung” (apartment) than in “Haus” (house), the French-speaking population seems to be looking for houses (“maison”) more often than apart-ments (“appartement”).


2016

2015

2017(forecast)

8,714 (9,298 CHF)

Houses Apartments


8,663 (9,243 CHF)

2016

2015

2017(forecast)

6,720 (7,170 CHF)

6,726 (7,177 CHF)


7,541 (8,046 CHF)

7,508 (8,011 CHF)

6,387 (6,815 CHF)

6,384 (6,812 CHF)

17.80 (19.00 CHF)

17.80 (19.00 CHF)

15.00 (16.00 CHF)

14.00 (15.00 CHF)

AVERAGE SALES PRICE



No data available for house rental prices.

Unpredictable market development With fewer loans, more self-capitalized resources are needed Stagnant population growth due to

legislative limitation on immigration

FUTURE TRENDS


100

75

50

25

0

Apartment (DE)

2012 2016201520142013 2017

Apartment (FR)

House (DE)

House (FR)


€ 4,775

RE/MAXEurope

36+COUNTRIES

18,000+AGENTS

1,700+OFFICES

About RE/MAX Europe

PAGE 39

18,000+

1,700+

2016 saw record-breaking sales and massive growth in

the number of real estate agents working for RE/MAX.

Now, with more than 18,000 agents in 1,700 offices

across the continent, the RE/MAX network continues

to be Europe’s largest real estate network. With a total

commission of more than 400 million Euros, the net-

work’s income has grown by 75 percent over the last

four years.

Michael Polzler, Managing Director of RE/MAX Europe,

forecasts continuing growth in 2017: “We see that our

clients’ requirements and needs are getting more spe-

cific and more numerous. To fulfill these and maintain

our high-quality standards, the year ahead is fully de-

voted to further growth.” Polzler’s goal – 22,000 agents

by the end of 2017 – will not only secure RE/MAX’s

leadership position in Europe, but will create even more

opportunities for a career in real estate.

36

PMSCS Real Estate Franchising Inc.Alpenstr.15, 6304 ZugSwitzerland

[email protected]

ImprintPhotos: alamy, dreamstime, Gap Interiors, House of Pictures, iStock, living4media, Living Inside, RBA Images, shutterstock, 123RF:Brando Cimarosti (3), Andreas von Einsiedel (2), Olivier Hallot, José-Luis Hausmann, Marina Kaplan, Juta Kübarsepp, Bertrand Limbour (2), Christophe Madamour, Laura Rizzi, Anne-Catherine Scoffoni

european housing report - re/max€¦ · estonia – rising salaries, more private investment, and...

Documents