Real Estate Market in Paris, London and Berlin

20.10.2011 00:45
Articles about real estate | Real Estate Market in Paris, London and Berlin Capital real estate in France, Britain and Germany have traditionally attracted the usual buyers and investors from around the world a stable political and economic environment, architectural beauty and comfort of life in general.

However, the Russians, who dream to move permanently to Europe, can afford to purchase real estate not in all capitals.

Related article: What, where and how much you can buy in Bulgaria?

Dream city Paris

Buy real estate in the French capital - is not this the dream of all who love this city? But in fact afford to purchase apartments in Paris can only he who stands firm has good financial huge. Housing prices in this city - one of the highest not only in Europe but worldwide.

The high cost per square meter is determined by several factors. First - this is, of course, the global popularity of the city as the most romantic, most fashionable, most of the cultural ... in general, very, very on all fronts. Secondly, France has a leading position and political authority in the European Union, which attracts to the Paris market residential and commercial real estate account a huge number of multinational corporations. And, thirdly, the lack of banal objects - the city center closely built up, so new buildings are built mainly on the outskirts of the metropolis. In addition, the Parisians themselves consider the most profitable investment in real estate.

Traditionally, the most expensive items are placed in the center, namely, in the 1st district, which is located on the Ile de la CitÉ. Here, price per square meter can range from 9000 euros to 14 $ 4,000. The most popular among buyers of the options available in 6, 7, 8, and 15th districts. This prestigious areas, where many historic buildings are concentrated. However, here the prices are much lower.

Golden Triangle (Le Triangle d'Or), the most prestigious quarter of the 8th arrondissement of Paris, is replete with proposals for the sale of real estate, here are comfortable apartments for 2 to 6 million euros.

When buying apartments in historic buildings, of which there are many, should closely look at the quality of communications. Many may require significant investment in repairs. Of particular alert if the proposed facility is located in a prestigious area, and its value is clearly lower than in the neighboring house.

More affordable options are located on the outskirts, but there will have to look good. Here you can find other buildings in that city center is a large deficit. Quality housing, built with current technology and trends to sell more or less adequate prices (6-8 thousand euro per square meter. M). In the inner suburbs of Paris, at a distance of 15-20 km, the apartments are sold on the secondary market at prices close to Moscow (4 thousand euro per square meter. M).

Today, real estate prices in Paris took to the pre-crisis levels. The average price of two-bedroom apartment ranges from 400-500 thousand euros. At the same time for the money as you can find apartments of 50-70 square meters. m, and a modest flat area of ​​27-33 square meters. m.

Brilliance and poverty in London

London - the capital of another world, house prices in a prohibitively high. The most popular among large foreign investors here enjoy elite real estate. Moreover, the demand for it every year is growing, and the proposal is collapsing.

Of course, luxury apartments, townhouses and taunhasy in the UK capital can only afford a certain group of people, including many of our countrymen, shining on different lines rating Forbes.

Housing is the average price category sometimes can not even afford to indigenous people. And this is despite the fact that mortgage rates is quite adequate, and the wages of Londoners even small rates, but growing.

Local commercial and residential real estate attracts investors from all over the world. Attract economic stability of the country (the British pound is one of the most stable currencies in the world) as well as tax incentives, which apply to non-residents.

On the real estate market in London for more than half of transactions performed with foreign buyers. Moreover, there has been following pattern: the higher the demand, the less real proposals, which in turn provokes a rise in the prices of luxury housing.

The most popular and prestigious areas are Chelsea, Kensington, Belgravia, Knightsbridge, Mayfair.

In the central part is sold mainly secondary real estate. Buildings there are very few. The government strictly monitors the preservation of the historical appearance of the city.

Is also interesting that, the fact that if a capital stable housing becomes more expensive, while in other regions of the country, experts note a gradual decline in prices. On average, in London for the year prices are rising by 10-20% and sometimes inaccessible for local people.

If the elite segment of the market there is a shortage of proposals, the other extreme is the fact that more and more residents of the city remain without a roof over your head. Over the last year growth of homelessness has increased across the UK at 10%, and in London itself at 8%. According to official statistics authorities on the streets of London while away the night at least 3,600 people.

State program for the reduction of social grants now operating in the country, may lead to the fact that with a lack of homeless in the future may face the current members of the middle class.

To prevent such unfortunate developments, it is necessary to maintain low interest rates on bank loans at the same level, as well as reduce the budget deficit.

The government plans to complete construction in 2015 80 000 units of affordable housing.

Another reason for the rise in price of real estate in London became the Olympic Games, which begin in August 2012. After 2005 it became known that British capital will host world-class sporting events, prices soared rapidly in areas near the sites of the competition. Analysts say the market price increases to 28%, while in other quarters of growth in cost per square meter more moderate.

In this regard, has been steadily increasing and the cost of the lease. Some apartment owners by renting housing in the long-term lease, even include in the contract item on its termination at the Olympic Games period. Thus, owners are planning to earn extra income from tourists, who at that time flooded the streets of London.

To date, London is the first in the ranking of most expensive housing in the world. Price per square meter is up to 16 400 euros. In spite of this, as in any city, there is a range of prices for items, depending on region and type of accommodation. Can be found for 155 000 euros a small flat area about 30 sq. km. m, but is located in the central part. Apartments larger area - about 50 square meters. m - may be worth some 500 000 euros. Luxury spacious accommodation (120 square meters. M) with a smart repair offer for 1.5 million euros, and this is not the upper price bracket.

Democratic Berlin

In Berlin, the cost per square meter, so to speak, obscenely low. Apartments here several times cheaper than in many European capitals and even in other cities with million-Germany. But first things first.

The cost of housing in Berlin, is calculated not only according to the state house and its location, but also from year of construction. The highest prices for apartments in houses built in 1880 - 1900, respectively. A square meter is available for 1700 - 2000 Euro (agree, the price is really more than adequate). Even lower cost apartments in buildings 1940 - 1960 years of construction, the prices here can truly be called penny - an average of 1050 euros per square meter. m. Traditionally, housing in prime locations (Kreuzberg, Pankow, Charlottenburg) is also much higher.

The average cost of housing in Berlin is 1,400 euros per square meter. m. Of course, as everywhere, there are exceptions: in the central regions has been fixed the maximum price per square meter, equal to 12 000 euros.

But, as in many cities and countries, the objects on the ground floor are cheaper (by about 15%). A renovated apartment in a good neighborhood is worth 20% more expensive.

In general, in other cities across the country property prices are much higher. For example, in Frankfurt-am-Main, which is the unofficial financial center of Germany, accommodation in new costs on average 3300 euros per square meter. m, the secondary market - 2339 euros. The most expensive real estate in Munich, here in new homes cost per square meter close to Moscow - about 4450 euro. Secondary housing is sold for 3370 euros.

Berlin is not included even in the twenty most expensive cities in the cost of housing.

In addition to the above advantages of this city, there is another important advantage: in the German capital in cleaner air than in other cities in Europe. In the atmosphere of Berlin, experts have found the least soot and other pollutants than in the other seventeen cities participated in the study.

The fact that the capital of Germany, many ride bicycles, bicycle infrastructure, the government is developing for the past 10 years. Due to this only in the period from 2007 to 2010, the amount of soot in the air decreased by 52%.

But Berlin would not be in the coming years to avoid the typical metropolitan problems - lack of housing. According to statistics, only the 2010 population increase of $ 18 000, the percentage is 0.5%. At the same time, the gap between demand for housing a growing population and the number of constructed facilities is substantial.

Despite the seemingly idyllic picture of the local real estate market, only 16% of Berliners own their own residential meters. The remaining 84% for many years, renting an apartment. The cost of rent in the capital are also quite reasonable, even though the permanent growth, it is four times lower than in Paris and London.

Summarizing, we can conclude that not all the capitals of real estate sold at exorbitant prices. There are pleasant exceptions, such as Berlin, where housing is affordable. Despite the fact that three of the above are very different, they share common problems, such as lack of new construction and general excess of demand over supply.
Julia Eliseev, specifically for the portal JJC.RU
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