Causes of housing price growth: analysis and forecasts

Reasons for the increase in housing prices

The increase in the cost of housing in different countries around the world all last year was a striking trend that was noticed by official statistics. In some countries, such as Turkey, the increase in housing prices without inflation in lira amounted to 190%, and with inflation included - 57%. Other countries also saw impressive house price growth: 24.2% in Estonia, 21.0% in Hungary, 16.6% in the Czech Republic, and 15.6% in Bulgaria. However, the level of inflation, especially in Europe, reduces the significance of this data.

Factors influencing price increases

The data was unsurprising and all leading factors in the increase in home values. One is the shortage of supply that has been in developed markets for years and intensified during the pandemic. Rising prices for building materials also had an impact. An important factor was the introduction of large institutional investors into the residential real estate sector, which made this segment the most resilient during the pandemic. While low mortgage rates also stimulated an increase in demand.

Real estate abroad

After several years of continuous growth, it has become difficult to find affordable housing abroad (up to €50,000). However, affordable options are still available, especially in quality complexes with good locations and rental potential. A residential complex in Batumi, Georgia offers one-bedroom apartments with a sea view (36.3 sq. m) for €35,000. The project is located in a quiet area on the outskirts of Batumi, just a few minutes' walk from the sea and the botanical garden. It is not far from the city center and the airport.

The complex provides for:swimming pool, fitness center, parking, restaurants, and shops,It also ensures the security of the area. With a low price, installment payments of up to one and a half years are possible. The average cost of housing in Georgia is about €900 per square meter.

Real estate in Bulgaria

In a specialized Telegram channel dedicated to real estate, immigration, and investments, there are numerous unique offers. For example, in Primorsko, Bulgaria, you can purchase a fully furnished two-bedroom apartment with an area of 50 square meters for just €50,000. This residential complex is located 300 meters from the sea and only 45 kilometers from Burgas Airport. It includes an underground parking lot, summer and winter swimming pools, a spa, a gym, a restaurant, and a children's playground. Nearby, there are a grocery market, supermarkets, a bank, a hospital, and a school. Additionally, the apartment is on the first floor, with access to a cozy little garden. Various payment options are available for buyers, with the possibility of installment plans for up to three years. There is a guaranteed opportunity to rent out the apartment, making it attractive for both personal use and investment in a country with affordable housing prices.

Real estate in Turkey

If you are interested in real estate in Turkey, you should pay attention to Tarsus, a suburb of Mersin. In 2022, the conditions for obtaining

Investments in foreignreal estate for Russian investors

One option for purchasing real estate abroad is apartments in Thailand. Many properties in this country are sold through leasing, but this option is registered under foreign ownership (freehold), which makes the purchase easier.

Apartments in Pattaya, Thailand

Located just a few minutes' walk from the beach, these apartments are an excellent choice. The average property price here is lower than in the more popular Phuket, making this offer particularly attractive. The option to pay in rubles simplifies the purchasing process and eliminates issues with currency exchange.

Investments in the Montenegrin coast

In the town of Sutomore you can buy a small studio with sea view for €30 thousand. This apartment is equipped with everything you need for a comfortable stay, including fresh renovation and air conditioning.

Obtaining a residence permit in Montenegro

One of the important factors when buying real estate abroad is the possibility of obtaining temporary or permanent residency for foreigners (residence permit). Any property in Montenegro can serve as a basis for obtaining a residence permit, including an apartment in Sutomore. Additionally, purchasing real estate in Montenegro opens up opportunities for earning income through rental.

Buying an apartment in Ikaalinen, Finland

In Ikalinen, it is possible to purchase an apartment without the need for personal presence through a power of attorney. The property is located on a quiet street with a view of the forest. Even in the context of a remote transaction, buying this apartment could be a profitable investment in the future.

Conclusion

Each of these options has its own advantages and disadvantages, and the choice depends on the individual needs and capabilities of the buyer. However, all of them represent worthy options for investing in foreignreal estate.

We present to you some interesting real estate options

Available for purchase through remote assistance, without your presence. Let's start with a cozy one-bedroom apartment in Pieksämäki, Finland, built in 1985. This property has a total area of 38.5 square meters and is located on the second floor of a three-story building. It includes a living room, kitchen, sleeping nook, bathroom, and even a sauna. The apartment is currently rented out, and its price is 27,319.64 euros.

Another attractive option is the apartments in the modern complex Magnolia Residence in Sunny Beach, Bulgaria.

Located just 500 meters from the sea, this five-storey apartment building offers studios and one-bedroom apartments. All accommodation is ready for living, with a swimming pool and beautiful green areas for a comfortable vacation. The price of such apartments is 41,000 euros.

If you need more space, you might consider a two-room apartment in Kemi, Finland, built in 1975.

This apartment, with a total area of 57 square meters, is also located on the second floor of a three-story building. It features a living room, a fully equipped kitchen, a separate bedroom, a bathroom, and a balcony. The price of this property is 12,560 euros.

In addition to residential real estate, we have an offer for a plot of land measuring 3090 square meters in the village of Berislavci, Montenegro.

Just 15 kilometers from Podgorica. The plot is located in a non-urbanized area, close to the road and with an electric pole nearby, making it ideal for building a private home or a country cottage. The price for this plot is 46,500 euros.

Finally, another option is an apartment in Harjavalta, Finland, built in 1974

The total area of this two-room apartment is 59 square meters, located on the second floor of a three-story building.

Luxury housing in Finland and Bulgaria: Real Estate Investments

VIPCon LKV offers unique sea-view apartments in the resort town of Elenite, Bulgaria. This stylish and fully furnished studio, covering 38 square meters, is located on the fourth floor of a gated complex. It's an excellent choice for those looking for the perfect summer getaway with the potential for additional rental income.

Three-room apartment in Finland from Alternativa Properties Ltd.

Imoti OOD offers a three-room apartment in Heinola, Finland. The total area of the apartment is 75 square meters, making it a great option for both comfortable living and investment. The apartment features a living room, a spacious kitchen, a cozy bedroom, a stylish bathroom, and a pleasant balcony, providing a full set of amenities for life.

Apartments in Sunny Beach, Bulgaria

• VIPCon LKV:Exclusive apartments priced at €42,300, with an area of 39 square meters and one bedroom. Includes a terrace, Act 16, and a flexible payment scheme.
• Oazis Realty:A 35 square meter studio on the fifth floor for 35,000 euros. A magnificent view of the pool and a parking space are included in the price.

Townhouse in Kemi, Finland

Alternative Imoti OOD offers a spacious townhouse with a total area of 67 square meters with three rooms in Kemi, Finland. It is ideal for those looking for a cozy and stylish accommodation with renovated kitchen, trendy bathroom and a large fenced yard.

Additional options in Sunny Beach, Bulgaria

VIPCon LKV also offers an apartment with an area of 42 square meters on the fourth floor. This accommodation provides comfortable living with a stunning view of the city, as well as a well-maintained area that adds extra comfort and coziness.

Two-room apartment in Rauma, Finland

Alternative Imoti OOD offers a one bedroom apartment built in 1975 in Rauma, Finland. It is a property with history that can be purchased remotely by power of attorney, providing convenience and reliability in every detail.

Reasons for the rise in real estate prices

Almost the entire previous year, official statistics from many countries around the world were filled with data on rising housing prices. In some places, the figures were staggering. In Turkey, according to data for the third quarter, the increase was 190% without accounting for inflation in lira, and 57% when adjusted for inflation. In other places, the increases were simply impressive. For example, in Estonia, housing prices rose by 24.2%. In the Czech Republic, the increase was 16.6%, and in Bulgaria, it was 15.6%. However, if we adjust these figures for the level of inflation (which reached 10% in Europe), the growth doesn't seem as significant.

Reasons for the rise in housing prices

• Supply shortages that have been building in developed markets for years and have only gotten worse during the pandemic
• The rise in prices for construction materials; in some categories, it has increased several times.
• Strong demand for real estate: against the backdrop of the coronavirus, many locals have decided to improve their living conditions.
• The influx of immigrants, which exacerbates the shortage of supply in the market.
• The arrival of large institutional investors in the residential real estate sector – this segment proved to be the most resilient during the pandemic. Private investors were also actively investing in real estate.
• Low mortgage rates (they didn't start rising until 2022, which, by the way, has already triggered a slowdown in price growth)
• After several years of continuous growth, it has become more difficult to find affordable real estate abroad (up to €50,000). However, there are still available options, particularly in quality complexes with good locations and the potential for rental income.

Some options for real estate abroad

Sea view apartments in a new building in Batumi, Georgia

A one-bedroom apartment (36.3 sq. m) in a modern residential complex under construction at the famous Georgian resort can be purchased for €35,000. The project is located in a quiet area on the outskirts of Batumi. The sea is within walking distance, just a five-minute walk to the botanical garden. The complex itself will be landscaped with subtropical plants. It takes 15 minutes to drive to the center of Batumi and even less to the airport.

Fully furnished sea front apartment in Primorsko, Bulgaria

A fully furnished and equipped euro-style one-bedroom apartment (50 sq. m) in Primorsko is for sale for €50,000. It is located 300 meters from the sea. The residential complex offers extensive infrastructure: individual underground parking, three summer pools and one winter pool, a spa, saunas, a gym, a restaurant, and a children's playground. Nearby, there is a grocery market, supermarkets, a bank, a hospital, and a school. By the way, the apartment is located on the first floor, so it comes with a small private garden. There are various payment options and the possibility of installment payments from one to three years. Additionally, a rental guarantee is provided. Therefore, the apartment is suitable for personal use (even for permanent residence) as well as for investment purposes.

Apartments in Tarsus, Turkey

A new complex in Tarsus (a suburb of Mersin) is suitable for obtaining a residence permit. Apartments here can be purchased starting from $46,000. The project is located in the city center and is aimed at permanent living. The beach is 10 km away. The complex includes a swimming pool, open and closed parking, children's playgrounds, gazebos, a landscaped park, a basketball court, a fitness center, as well as numerous cafes, restaurants, and shops. Installment payments are available for up to one year.

Freehold apartment in Pattaya, Thailand

A fully furnished two-room apartment (52 sq. m) is for sale for €43,000, located just ten minutes from the city center. The beach is within walking distance. The complex offers essential amenities for comfortable living: a fitness center, a swimming pool, and covered parking. The area is a secure, gated community.