Publication “Basic figures on the EU” Spring 2012
The latest statistical data on the EU have been published by Eurostat. Eurostat publishes official, harmonised statistics on the European Union (EU) and the euro area which offer an objective portrayal of social and economic trends. These statistics are available for EU Member States, and are sometimes broken down by region. Furthermore, some of the indicators are published for candidate countries and other non-member countries. Eurostat collects data from national statistical institutes; the statistics are harmonised according to Europe-wide methodologies. Data are, therefore, genuinely comparable across the whole of the EU. Website Eurostat’s website: http://ec.europa.eu/eurostat provides free access to EU statistics, and is also available in German and French. See the publication at the following link: http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-GL-12-001/EN/KS-GL-12-001-EN.PDF
Download ()Austria – Market Outlook 2012
The demand for residential properties in Austria does not appear to be diminishing. There are several reasons for investment in properties in Austria. Mainly the fear of a higher inflation and the fear of a struggling Euro are the forces behind the high demand for properties. „People say that they have saving accounts between EUR 100.000 and 500.000 and want to know what kind of property they will get for their money“, says Andreas Wollein from the board of the Austria real estate association OVI describing the situation in his home country.
Prices expected to climb
The prices are expected to climb to an even higher level on the basis of the decreasing offer on the residential market. The minor production of new areas will enforce this trend in light of a growing population in most of the austrian agglomorations, with Vienna at the head, as well as the rise of one-person-household.
Increasing real estate prices create needs for political greed referring to additional tax revenue. This has been articulated in the latest political postulation for a housing taxation. The Övi, however, protests vehemently against additional real estate taxation whatsoever.
Real estate market Vienna – above-average increase of prices for sought after objects in locations in demand
Opposed by a high number of demands is the shortage of supply, which has made the prices for newly built owner-occupied flats not only in Vienna to climb upwards over the past 2 years. You can observe an above-average rise in prices up tp 20% for sought after objects in popular locations. „Something that could have been bought for 2.500€/sqm 2 years ago, nowadays would cost 3.000€/sqm“, Andreas Wollein comments on the current price development. Even in less demanded locations it is almost impossible to find objects for under 2.000€/sqm.
A league of its own
In good locations (excluding the 1. district) purchasing prices between 3.500€ - 5.000€/sqm are realised. Attic conversions even cost 3.500€ - 5.500€/sqm at an average depending on the location. Meanwhile even on the used real property market amazing prices are reached; in moderate locations between 2.000€ - 3.000€/sqm, in good locations even 4.500€/sqm are possible. The 1. district in turn is a league of its own: here the purchasing prices can climb up to 8.000€ - 16.000€/sqm.
The Austrian Real Estate Association OVD has published its latest market outlook for the year 2012. Find the outlook for Austria under the following link:
Market Outlook 2012 of OVI
Picture: www.fotolia.de
Download ()Germany – Real Estate Environment remains Good in 2012
The German real estate business is heading for a good year in 2012 according to IVD forecasts. “Overall economic conditions in Germany can still be considered stable, despite the ongoing monetary turbulences”, says IVD Vice-President Jürgen Michael Schick. “As things stand we expect the domestic economy to continue growing in 2012.” The general positive trend promises a high demand for residential real estate, in his view. “Low interest rates and an altogether moderate price climate make German residential properties attractive and affordable for many buyers”, Schick describes the present constellation.
Interest rates
Interest on ten-year loans rose to just above four percent in the first quarter of 2011, but then dipped again significantly to around 3.2 percent. “With the ECB’s last cut in key lending rates only just behind us interest is very unlikely to rise beyond recent levels during the coming year”, says Schick. “This should allow German residential real estate to remain affordable.” Other major determinants of buying interest such as employment figures or income trends are difficult to predict for the coming months, but are expected to remain stable from today’s viewpoint, according to Schick.Price uptrend
He expects the price uptrend of the past year to be sustained by the strong demand, but adds that German real estate prices are still quite low compared with other European countries. “An 80 square metre flat in Berlin costs slightly less than half the price of one in Brussels”, says Schick. “In Stockholm it takes an average 496,000 euros to buy a flat, whereas in Berlin the average is 112,000 euros”, he continues, illustrating his view that German residential real estate is anything but overpriced.Rental Levels
The coming year will also see in many regions a continuation of the uptrend in rental levels, according to the IVD. For 2011 the IVD reports increases between 2.1 (housing built 1949 or later) and 2.9 percent (older housing), at an average inflation rate of 2.4 percent. In the urban centres it has even found rates to have increased in the range from 3.8 (housing built 1949 or later) to 5.8 percent (housing built up to 1948). “There will be no trend reversal in rental levels in the coming year”, Schick predicts. Especially in the larger cities tenants will have to adjust to rising rents”. Real estate supply in the cities is barely keeping pace with the growth in demand, and the low housing completion figures of the past years has led to a substantial and widespread demand backlog, as he explains.Residential Construction
“Despite the revival of residential construction it will take some time before this balances the demand”, says Schick. For the first half of 2011 the Federal Statistical Office reported building permits for 95,000 residential units, which is equivalent to a year-to-year increase by 28.9 percent or 21,300 units. The IVD sees the strong increase in building permits over the previous year as a sign that the turnaround in housing construction has now been ultimately achieved. In 2010 the number of residential units approved was 6.8 percent higher than it was in 2009.Demand still growing
“With construction activity only picking up slowly and demand still growing, investment in residential real estate will continue to be a good asset management option in 2012 as well,” says Schick. “German housing was also a welcome harbour for both private and institutional investors in the two preceding years. This has invigorated the market for rented private flats and multi-family houses.” This trend is expected to continue through the coming year. IVD members who cooperate with capital investors report continued brisk demand well into the new year. Source: website of german Real Estate Association IVD, http://www.ivd.net Download ()UK property market will see ‘gradual’ recovery in 2012
The National Association of Estate Agents (NAEA) has revealed its predictions for the UK property market over the next 12 months. NAEA chief executive Peter Bolton King said 2012 will see a 'gradual' recovery for the UK property market, as it continues to bounce along the bottom - with no "great upturn" to mark a change from the previous 12 months.
Similar level than in 2011
Mr Bolton King said: "I don't believe that we will see a significant fall in house prices over the next 12 months as some have feared. But equally, it is unlikely we will see any great upturn to help the market back to full capacity. It is likely that property transactions will remain at a similar level to that in 2011." However, a lack of available finance will remain the biggest barrier to would-be home buyers in 2012 warns Mr Bolton King, with first time buyers in particular struggling to access mortgage finance from many major lenders.Stamp duty holiday until third quarter 2012
He said: "Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies. Clearly, when the Stamp Duty holiday disappears in the second quarter of 2012 it will become even more difficult for first time buyers to access the market." Commenting on regional variations, he said: "What we will see in 2012 is a continued increase in 'micro-markets' across the country. Demand for property in some areas fuels a healthy market while other, less desirable areas, are in danger of being left behind. Even within the same town we see some types of property proving more popular than others. "Pressure for housing will increase in London and the South East throughout 2012. The top end of this market will also remain very resilient, and we believe that purchases from overseas investors will continue apace."Housing prices with little change
Overall Mr Bolton King believes that house prices, on average, will see little change. "Confidence in 2012 will be a key factor and this, to some extent, will be driven by the media." Source: website of NAEA, England: http://www.naea.co.uk Download ()- 1
