OFFSHORE loans for house purchases were 18% of total loans granted to households. Foreigners from countries which grant reciprocal rights can buy residential property in Macedonia, subject to approval from the Ministry of Justice, but landed property is somewhat more complicated. The gross rental yield in the city centre is 3.46% and outside the city centre it’s 3.78%.
Istanbul, Turkey 2011 and 2012 saw Turkey’s property prices increase on average 11.5%, astounding when you consider that one of Turkey’s near neighbours, Greece has been undergoing the Great Greek Depression. After the changing of Turkeys rating from BBB- to BB+, their economic situation has become far more stable than a lot of countries and investment money is pouring in. With rapid population growth there is a demand and need for housing which is making the price of property increase but not so high that the property is expensive.
Chisinau, Moldova Moldova is a small country with high rental yields. The capital, Chisinau, has very steady prices and offers up to a huge 13% yield
Chisinau, Moldova
www.reimag.co.za
on small apartments, which is better than any where else in Europe. If Moldova ever becomes an EU members then there is the real possibility of capital growth too in the future. With rental yields of around 11% for medium sized apartments, Moldova offers real investment opportunities. Non-agricultural land can be freely bought and sold by anybody. However foreign citizens, companies, or states cannot buy agricultural and forest land, though they can lease short term (1 – 3 years), or long term (5 – 99 years).
Riga, Latvia The Latvian economy has been on the road to recovery since 2011 and has experienced real GDP growth since 2011. And 3% economic growth is predicted for this year. In Riga suburban yields are between 5% and 6.4%. The rental market and laws are generally prolandlord and residency is dependant on real estate investment, where and what you invest in.
Rome Italy Investing in Rome is a wise decision; it’s one of the most attractive and interesting cities in the world and is a tourist hotspot, boasting culture and historical artefacts, which draw tourists from far and wide. Unlike in most of
Riga, Latvia
Rome, Italy
Europe the house prices in Italy did not boom as high and so are unlikely to bust as bad. Be wary of older property and purchasing until you have a clear idea of ownership as some properties may have several owners. On the positive side capital gains tax in Italy is nil after five years of ownership.
Berlin, Germany Germany is the healthy child in sickly Europe at the moment, and has surpassed the UK in terms of most favourable property market in Europe. Property in Berlin is among the least expensive in Europe. Property is available in the German capital at less than 1,000 euros/m² (around £800/m²) which compares with Paris at 6,000 euros/m² (£4,800/m²). Germany also boasts a healthy and competitive mortgage market, with banks lending between 50 – 60% of the valuation and at lower rates, which can be fixed over a number of years. The favourable conditions in Berlin and Germany have seen private-equity f irms purchasing property in Germany at a high rate.
RESOURCES Global Property Guide
Berlin, Germany
May 2013 SA Real Estate Investor
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