Looking for a place in the sun… but where?
This is certainly the question that those who have a capital to invest or that are simply thinking of moving overseas after retirement ask themselves especially in the present turmoil that hit Europe and the entire western world.
According to the scenario outlined in the European Outlook 2014, during these seven years of crisis, the turnover of the Eurozone market has shrunk dramatically, only Germany has grown along with the majority of the northern countries. But the double crisis, the economic one and that of real estate market, is coming to an end with a timetable differing from one area to another. Anyway most euro countries are still facing declines, such as the damaged Spanish housing market, which saw prices collapse by 6.4 per cent in 2013 with a slow increase by 0.8% in the third trimester. Italian prices fell 5.3% and this number is set to increase. France has continued to decline in value, down by 1.4%. However Eurostat, the statistical office of the European Union, registered in the second and third trimester of 2013 a rise in prices by 1.2% in France.
So what Southern European area represents the best bargain for potential buyers? At this time only in Italy, along with Malta, Cyprus, Slovenia and Finland, prices continue to lower.
In Greece the housing market appears to be dead for the moment. The property tax burden is one of the main responsible for its crisis. You only have to think that in 2013 Greeks paid the equivalent of five Italian IMU (the property tax that in Italy was abolished for first home owners, unless they possess a luxury home).
Spain has also recorded a substantial fall of its market from any point of view, and especially with regard to the property market. As a matter of fact, not only prices fell drastically with respect to some years ago, but if that is not enough, its property heritage consists for a great part of brand new buildings (about 700,000 houses) that were realized indiscriminately along its western coast especially and that are not attractive at all for overseas potential buyers.
On the contrary, even though Italy’s real estate market has experienced the same abrupt halt over the past few years as Spain, Greece and also France, overseas purchasers’ tendency is largely turning positive bit-by-bit, as shown by the data collected by Gate-Away.com from January to September 2013. It has found out that there are evident signs of a growing demand and interest in Italian properties, as in this lapse the portal received +51% of inquiries from worldwide investors with respect to 2012.
This is because the Italian market still represents a safe, happy and rewarding purchase due to its appealing living conditions, such as its long tradition and history, gourmet cuisine and culture, but also its different landscapes and typical homes to choose from.
