In the EU, real estate is considered one of the most profitable investments
According to Bloomberg, European investors are actively buying property.
The publication notes that last year, housing prices in the Eurozone rose by an average of 4.6%, which is the highest figure since the onset of the financial crisis. The growth in property prices was not affected even by a slowdown in economic growth.
The authors of an article in Bloomberg consider such an increased interest in European real estate an uncontrolled boom.
Real estate economists and consultants predict that for another one to two years, the housing market will continue to grow, generating revenues of about 4%, while Eurozone government debt is struggling to grow by more than 1%.
Economist Alejandro Inurrieta stresses that real estate is one of the few investments that still brings decent income. Fixed income, in his opinion, looks disastrous for large investors, such as pension funds, and even for small investors.
Peter Jun, co-founder of Arminius Group Real Estate Advisor in Jersey, adds that German pension funds prefer to own residential or commercial property for 10–20 years in order to receive a current annual return of 4%.
In general, an analysis of Bloomberg Economics showed that the cost of housing around the world remains high for a number of indicators.
Aug. 2, 2019