The stock markets have been turbulent of late due to the falling price of oil, political sanctions constricting economies and the recent slump in Chinese GDP growth. Because of this, physical assets such as gold and real estate have received attention from cautious buyers of late. I’ve decided to look at this occurrence, particularly in regards to European real estate
Across the continent, the rise in physical investment has helped to strengthen the recovery of the property market. The recovery has varied across the region however, according to Market Oracle.
Areas of growth
The UK capital, London, has seen meteoric growth year-on-year for the last five years. The city’s current position in the real estate market has made it the envy of the globe in regards to growth and development – new developments are established seemingly every day.
With this in consideration an investment in London, while expensive, could be highly beneficial. Residential and office rents are increasing due to high demand, clearly indicating a popular market place. Concurrently, experts at Reit.com note that the UK is pricey, but useful for long-term investment horizons.
Taking a risk
While Western Europe may offer safer, high-quality investments, the Southern regions of the continent offer cheaper real estate with high potential.
Spain, for example, has high-quality assets at a cheaper price than other parts of the continent – particularly in major metropolitan cities seeing a recovery in real estate prices such as Madrid and Barcelona. Market Oracle points out that coastal areas are a good investment as they offer a “quick turnaround” as the price of property sales rises.
As well as Spain, the recovering market in Ireland is an attractive prospect for potential investments in cheap assets for development.
In summary, the continent is recovering well in regards to real estate value – now is the time to consider options and plan ahead.
Nery Alaev is the current director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.