European Housing Report

Transcription

1 European Housing Report

2 European Summary Good loan conditions and incentives especially for first-time buyers high demand, and growing prices will shape the European real estate market in upcoming months. We re seeing low interest rates, and therefore cheap loans, in almost all European countries currently. Favourable economic conditions are leading to active real estate markets. New properties are being built, for example, in Slovakia and Estonia, while in Malta, the rental market is getting stronger thanks to a growing number of foreign employees living on the island. Markets like Portugal, Greece, and Scotland are recovering well, showing clear signs of improved stability and increased transactions in the future. In general, sales and rental prices increased between and, especially for properties in cities, where square meter prices rose dramatically. In some cities in Lithuania, Germany, and Luxemburg, for example, the increase of sales prices for apartments was as high as 13 %. Further increase is expected, except for France, Greece, and Swit- zerland where prices should remain steady in. Sales prices for houses in the countryside have grown as well, and are expected to further increase in by about 4 % in Austria and Estonia. Rental prices also rose in, by 10 % for urban apartments in the Netherlands, Romania, and Spain, and by as much as 16% in Malta. For most countries, property rental prices are forecasted to increase further or hold steady next year. Location is still one of the most important criteria for price differences; average sales prices for apartments differ by as much as 64 % between properties in urban areas or the countryside. For houses, the difference is as high as 44 %. While mixed areas are expanding in countries like Germany, in Italy, young people prefer the central areas of major cities to reduce their commuting time. The RE/MAX Europe Housing Report functions as a brief overview of the European real estate market and its current and future price developments for residential sales and rental properties. All numbers are average and approximate figures sourced from internal RE/MAX data and general market data for each respective participating country. RURAL URBAN +44% DIFFERENCE IN m 2 FOR HOUSES URBAN VS. RURAL AREA IN RURAL URBAN +64% DIFFERENCE IN m 2 FOR APARTMENTS URBAN VS. RURAL AREA IN 61% OF EUROPEANS OWN THE HOME THEY LIVE IN Source: Survey of European RE/MAX independently owned and operated regional sub-franchises. Source: RE/MAX pan-european consumer survey, January. PAGE 02

3 Austria 8,700, % 2,009 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Austria Low interest and high demand has made a boom market in Austria, with urban apartments expected to have the largest sales price increase in the country. areas per square meter). With sales prices forecasted to rise by 5.9 % in, urban apartments are expected to have the highest price increase in the Austrian real estate market. In, the sales price for apartments averaged 207,998 Euros in urban areas and 182,823 Euros in the countryside. House prices in cities averaged 463,248 Euros, with distinctly cheaper prices found when buying in the countryside. The increase from is especially high for houses (up 9.1 % in urban Rental prices for apartments in cities are expected to increase by 4.1 % in, as opposed to those in rural areas where prices are estimated to drop by 2 %. The rental market for houses is insignificant in Austria, both in cities and in the countryside. S AND S 2.0% 4.1% 5.9% -1.3% 3,822 2,345 3,442 2,906 3,503 2,190 3,384 2, % 2.5% 4.1% -2.0% PAGE 03 3,550,000 SOLD BY RE/MAX IN VIENNA 1130 Shorter supply Demand for properties continues to be very good Generally increasing prices A positive market environment thanks to low interest rates and lack of alternative investment opportunities GOOGLE SEARCH INTEREST According to Google Trends, in Austria the relative popularity of the search term Haus (house) is on average 60 % higher than of the term Wohnung (apartment). Over the past five years both terms had the same seasonal variation with search volume reaching highs during the summer periods, while searches for Grundstück (land) remain relatively low throughout the year. 100 House Apartment 25 Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 04 AUSTRIA

4 The Czech Republic 10,553, % 824 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: The Czech Republic A growing market with increasing sales prices leads to 8 % RE/MAX market share. In, sales prices for apartments in urban areas reached an average of 2,218 Euros per square meter, but only 788 Euros in rural areas, a huge price gap of 181 %. This is a 5 % increase over and both price levels are expected to rise an additional 5 % in. Sales prices for houses will also increase, but not as strongly. The rental market is more stable. Urban apartments could be rented in for around 444 Euros per month and 295 Euros in the countryside. Rental prices for houses are typically more expensive; renting a house in the city in cost an average 1,050 Euros per month, while the average rural price was 793 Euros. Rental prices are expected to remain stable in. S AND S 3.0% 2.0% 5.0% 5.0% 1, , , , PAGE 05 2,666,666 MOST EXPENSIVE PROPERTY SOLD BY RE/MAX IN PRAGUE COMMERCIAL Reduced number of properties for sale Growing market Rising sales prices GOOGLE SEARCH INTEREST In the Czech Republik, the search term byt (apartment) is more popular than the search term dům (house), while the relative search volume for pozemek (land) is rather low. Searches for all three real estate terms sometimes overlap, though, and are extremely volatile House 25 Apartment Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 06 THE CZECH REPUBLIC

5 ESTONIA Estonia 1,315, % 945 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Estonia Rising salaries, more private investment, and good loan conditions have boosted sales prices in a favourable market for both buyers and sellers. IIn, a semi-detached house was sold for 160,000 Euros in urban areas, a strong increase over. An urban apartment with square meters could be bought for 88,000 Euros. Sales prices for apartments and houses are expected to increase by as much as 6 % in. The rental market is more stable. In, an apartment cost about 500 Euros per month in the city and 200 Euros in the countryside, with no change from. Rental prices will rise at a lower rate for apartments and remain steady for houses. 1,500,000 SOLD BY RE/MAX IN TALLINN LAND PLOT FOR DEVELOPING APARTMENT BUILDING S AND S 3-5% 4-6% 3-5% 4-6% 1, , , , % 2-3% PAGE 07 No Google Trends available due to lack of data. New apartment development in urban areas. More transactions with new apartments. Growing number of private investors purchasing rental apartments. Good loan conditions (low interest rates, increasing turnover of new loans). Favorable conditions for home buyers thanks to rising salaries and a low unemployment rate. Population increase in the capital Tallinn, but decrease in other regions. PAGE 08

6 FINLAND Finland 5,487, % 2,509 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Finland Economic confidence means even more market growth on par with last year s price increases. In, one had to pay an average of 240,000 Euros for apartments in the cities, compared to 110,826 Euros in the countryside, reflecting a moderate increase of 2.6 % and 2 % over, respectively. Sales prices for apartments in Finland are expected to increase in by 3 %, whereas sales prices for houses will only increase by 1 %. Rental prices for apartments in urban areas are expected to increase as much as 2 %, while prices should remain steady for all other types of properties regardless of location or size. 4,300,000 SOLD BY RE/MAX IN HELSINKI BUILDING WITH SEVERAL APARTMENTS S AND S 1.0% 1.0% 3.0% 3.0% 3,196 1,472 4,205 1,960 3,138 1,463 4,097 1, % PAGE 09 No Google Trends available due to lack of data. Strong consumer confidence in Finland s economy. Rising expectations of personal financial circumstances. Optimistic assessment of unemployment solutions. Significant growth expected in the real estate industry. PAGE 10

7 France 66,661, % 2,157 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: France Prices hold steady amid political and economic uncertainty. In, urban apartments sold for an average price of 5,440 Euros per square meter, a 2.6 % increase over. All other sales prices have remained nearly flat in France and are expected to remain so in. Between and, the average urban apartment rental price declined slightly from 22 to 21 Euros per square meter a 4.5 % decrease but remained stable at 7 Euros in the countryside. In general, rental prices are expected to remain steady in. S AND S 3,130 2,050 5,440 2,020 3,095 2,010 5,300 2, PAGE 11 1,525,000 SOLD BY RE/MAX IN PARIS (7TH DISTRICT) Slight growth of real estate market expected Tax-related uncertainties due to presidential election Increase of loan rates GOOGLE SEARCH INTEREST According to Google Trends, in France people search three times more often for maison (house) than for apartement (apartment). Most searches take place in August, with expected dropoff in December. The relative popularity for terrain (land) remains low and static throughout the year House Apartment Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 12 FRANCE

8 Germany 82,162, % 2,265 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Germany A large influx of relocations to the city makes for stunning growth in the rural rental market as the housing bubble grows. On average, an apartment in a German city could be bought for 300,000 Euros in, an increase of 11 % over. Apartments in the countryside have sold for around half that price. Urban houses and apartments are expected to show rising prices of about 5 % in, while sales prices of properties in rural areas will grow by just 2 %. The high increase of rural square meter rents between and in Germany is remarkable: over 16.7 % for apartments and 6.7 % for houses. These are expected to increase slowly in, but rents for urban houses could rise by as much as 4 %. S AND S 5.0% 2.0% 5.0% 2.0% 4,200 1,850 3,700 1,700 4,000 1,700 3,300 1, % 2.0% 1.0% PAGE 13 3,000,000 SOLD BY RE/MAX IN SYLT VACATION HOUSE Low interest rates In Large Cities: Low supply but high demand for properties, Mixed rural/urban regions continue to expand, Housing bubble grows In the Countryside: Exodus from the countryside to the urban regions, Uncertain working conditions require higher flexibility of housing choice GOOGLE SEARCH INTEREST Google Trends data shows the relative popularity of the search terms Haus (house) and Wohnung (apartment) constantly increasing over time, while searches for Grundstück (land) remain low and stable in comparison. There are slightly more searches for houses than for apartments, but both search terms follow the same seasonality, reaching their peaks in August House 50 Apartment 25 Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 14 GERMANY

9 GREECE Greece 10,783, % 947 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Greece After a lengthy contraction, the real estate market starts to bounce back with a stability in sales prices and a modest increase in rents, with more steadiness in the forecast. In, an apartment could be bought for average 92,200 Euros in the city and average 67,000 Euros in the countryside a decline from of 1.9 % for urban apartments and an increase of 3.0 % for apartments in the countryside. The forecast for is more positive, with hope for steady sales prices for apartments as well as houses. Rental prices are growing, however, reaching between 530 and 450 Euros a month in, depending on the location, for a price increase between 0.9 % and 2.3 %. Rental prices are expected to remain steady in. S AND S Real estate properties No separate data per property type (house vs. apartment) available PAGE 15 No Google Trends available due to lack of data. Real estate prices are stabilizing after a long period of contraction, while the number of transactions has been increasing since Overall positive outlook, as risk of further market decline is marginal. Investors from abroad are attracted by the relatively low prices and the Golden Visa program. Real Estate is still regarded as a good investment alternative, in combination with attractive prices. Banks are willing to offer loans, under strict preconditions of lending. The Greek economy seems to be stabilizing with a positive outlook. PAGE 16

10 Italy 60,665, % 1,762 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Italy While overall transactions have increased and rental prices grow, an uncertain political environment has kept sales prices in decline. 1.9 % and 3.3 %. Real estate experts hope for a recovery in, with rising prices in urban areas and steady prices in the countryside. During there was a slight decline in prices compared to ; house prices in the capital were an average of 204,990 Euros in, compared to 212,025 in. In this time period, and regardless of their location, sales prices of apartments and houses declined between The rental market, on the other hand, is showing price increases by as much as 1.3 % for apartments and 2.4 % for houses. In, apartment rents are expected to increase further, but remain stable for houses. S AND S 0-1.0% 0-2.0% 1, ,117 1,236 1, ,158 1, % 0-1.0% PAGE 17 2,500,000 SOLD BY RE/MAX IN ROME VILLA WITH SWIMMING POOL AND PANORAMIC VIEW IN AN EXCLUSIVE RESIDENTIAL AREA Italians start to see real estate as a valid safe-haven investment asset Convenient mortgage loans with low interest 14 % increase in property transactions but prices still tend to decrease Skepticism and lack of confidence in current government Young people again consider living in the central areas of major cities to reduce commuting time GOOGLE SEARCH INTEREST In Italy, the relative search popularity of the three property types is quite similar to France; people search on average for casa (house) more than three times as often as for appartamento (apartment). While searches for terreno (land) are low, relative search volume for houses and apartments show a typical low in December and has increased slightly over the past two years House Apartment Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 18 ITALY

11 LITHUANIA Lithuania 2,888, % 637 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Lithuania A robust market with the highest prices since 2008 keeps booming in, buoyed by higher salaries and low interest rates. The Lithuanian real estate market is characterized by sharply rising prices for both sales and rentals. In, an urban apartment had a square meter sales price of 1,325 Euros, nearly 14 % percent higher than. In the countryside, prices increased more slowly but were still remarkable, with an average increase of 5-9 %. Sales prices are expected to increase further in, but only at 4-5 %. The monthly rental price for a rural house was about 310 Euros in, and twice as much for a house in an urban area. At the same time, rents for apartments in the countryside went up by 14.8 %, but only by 9.1 % in cities. Rental prices are forecasted to remain steady in. 770,000 SOLD BY RE/MAX IN VILNIUS HOUSE IN VILNIUS OLDTOWN S AND S 5.0% 5.0% 5.0% 4.0% , , PAGE 19 No Google Trends available due to lack of data. Active real estate market with price growth. Rising salaries, good consumer expectations, cheap loans. Increased market demand. 50 % of property purchases are facilitated by cheap loans. Property prices are 30 % lower than the highest pre-crisis level in PAGE 20

12 LUXEMBOURG Luxembourg 576, % 3,009 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Luxembourg Low supply and rising demand is pushing prices by as much as 22 % in all locations and property types. Prices for sales and rental properties in Luxembourg have been increasing strongly over the past year and are expected to keep going up. While the average sales price for urban apartments was 7,091 Euros per square meter in, it is now at 7,975 Euros, an increase of more than 12 %. Apartments are cheaper in the countryside, but prices still rose more than 9 % per square meter. Sales prices for houses in urban areas increased by a sharp 22 % per square meter. The situation is similar with rental properties, where prices increased for both apartments and houses in urban and rural areas. Further price increases between 5 % and 10 % are expected in. 2,900,000 SOLD BY RE/MAX IN MONDORF-LES-BAINS S AND S 10.0% 7.0% 5.0% 7.0% 6,383 4,160 7,975 5,626 5,251 3,884 7,091 5, % 7.0% 5.0% 3.0% PAGE 21 No Google Trends available due to lack of data. Low supply vs. high demand. Rising prices across all property types and areas. Loans are not as easy to get as before. PAGE 22

13 Malta 434, % 1,021 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Malta Limited stock, 93 % of ownership, and high demand from local and foreign investment are supercharging the market in Malta as it continues its evolution as a leading business hub in Europe. Sales prices for apartments and houses in both urban and rural areas saw an average increase of 10% in, compared to. A restructuring of building laws to approve the construction of several multi-use high-rise buildings, condominium complexes, and 5-6 star hotels to accommodate high demand will positively impact both property sales and rental prices in Malta. Tax efficiency for companies, high net-worth individuals, residence holders, and highly qualified persons has attributed to an influx of foreign investment which creating a buoyant rental market. 18,000,000 MOST EXPENSIVE COMMERCIAL PROPERTY SOLD BY RE/MAX IN KAPPARA HOTEL WITH PERMITS FOR DEVELOPMENT S AND S 4,500,000 SOLD BY RE/MAX IN PENTHOUSE IN ST. JULIAN S 3.5% 3.5% 3-6.0% 5.0% 2,201 1,350 2,101 1,337 1,999 1,200 1,900 1, % 2.9% 6.0% 6.0% PAGE 23 No Google Trends available due to lack of data. Property sales and rentals to increase due to government Global Residence and Citizenship by Investment programmes. Rental market to grow through and beyond due to an increase in foreign employees. New high-rise buildings to start development in towns of Sliema and St. Julian s. Rental investment to continue in both commercial and residential real estate. First-time buyers to increase due to special subsidy on stamp duties throughout. MALTA PAGE 24

14 The Netherlands 16,979, % 2,263 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: The Netherlands After years of flat stability, the market is on the rise again across all market segments, with high demand spurring more growth this year. The real estate market in the Netherlands is fairly consistent between urban and rural areas. Prices for apartments in cities and the countryside rose more than 6 % since and are now at 2,296 Euros per square meter. For houses, the average sales price is currently at 1,969 Euros. Prices are expected to go up further in. People in the Netherlands pay 22 Euros per square meter for rental apartments in urban areas and 13 Euros for those in the countryside. Compared to, this was a price increase of about 10 %. The numbers are very similar for house rentals, which will increase again in by about 7 %. S AND S 4.0% 6.0% 6.0% 5.0% 1,969 1,969 2,296 2,296 1,846 1,846 2,160 2, % 2.0% 7.0% 2.0% PAGE 25 24,500,000 SOLD IN AMSTERDAM LUXURY APARTMENT, CITY CENTER OF AMSTERDAM, 1,250 m 2 The Dutch market is picking up and developing positively High demand on rentals Government will lower the amount of social housing, which will further fuel the rental market GOOGLE SEARCH INTEREST Google Trends show a tremendous gap between the relative search volume for huis (house) and appartement (apartment): the first term is nearly ten times more popular than the latter and shows continued growth over the past five years. The relative search volume for bouwkavel (land) is insignificant. 100 House Apartment Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 26 THE NETHERLANDS

15 Portugal 10,341, % 984 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Portugal Available loans and foreign investments are helping the market rebound after the country s economic reorganization, with prices across segments flat or rising. over. In rural areas the average square meter price was 14 % lower, and both are expected to increase by another 3-4 % in. Sales prices of houses are steady in the countryside and increasing in cities. The average sales price for an urban apartment was 193,861 Euros, with an average price per square meter of 1,330 Euros. This was an increase of more than 4 % Renting a house costs about 6.50 Euros per square meter in urban areas and 4.50 Euros in rural areas. Prices are expected to remain stable this year. S AND S 3-4.0% 3-4.0% 3-4.0% 1,100 1,026 1,330 1,143 1, ,272 1, PAGE 27 5,000,000 SOLD BY RE/MAX IN LISBON BUILDING WITH SEVERAL OFFICES Market is growing again after economic reorganization of the country Foreign investments are on the rise due to the government s Golden Visa Program to encourage foreign investment GOOGLE SEARCH INTEREST Compared to most other European countries, relative search volume for moradia (house) and apartamento (apartment) only differs by 17 %, with the latter being more popular. Search interest in terreno (land) is also relatively high. All three search graphs are very volatile and show steady growth since the beginning of Apartment 50 House 25 Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 28 PORTUGAL

16 Romania 19,759, % 505 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Romania Regulations attract first-time buyers and fuel demand across all market segments, with prices expected to keep rising for years. Home owners in Romania should invest quickly since prices are rising in both rural and urban areas. The average sales price for an urban apartment was 1,150 Euros per square meter in and 1,080 Euros in. A further increase of 8-10 % is expected. Rural apartment prices are cheaper at just 550 Euros per square meter and an average sales price of 40,000 Euros. Sales prices for houses will rise in all areas by 8-10 %. The rental market is growing across all property types and regions and prices will continue increasing over the next few years. The average rental price for an apartment was 440 Euros in cities and 200 Euros in the countryside. In, the house rental price per square meter was a little higher than 5 Euros in urban areas and 3 Euros in rural areas. S AND S % 5.0% % 5.0% , , % % PAGE ,000 SOLD BY RE/MAX IN CLUJ-NAPOCA First House government programme supports young people VAT changes expected in coming months Risk of instability from turbulence in the new government GOOGLE SEARCH INTEREST In Romania, Google Trends show the relative search popularity of casa (house) is 3.5 times higher than that of apartament (apartment) or teren (land). While searches for houses have consistently increased over the past five years, the relative search volume for the two other terms has remained stable over time. 100 House Apartment Land Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 30 ROMANIA

17 SCOTLAND Scotland 5,373, % 2,001 NET MONTHLY WAGE Source: Population: NRS,. Value of real estate activities vs. GDP, Average and mean wage: Government of Scotland. Scotland After a year of a 1.9 % decline in sales prices, the market is bouncing back for moderate improvements in with rental availability and pricing remaining strong. are also on the decline, but a little less. While buyers had to pay 2,106 Euros per square meter in cities in, it was 2,083 Euros in. Prices are expected to increase by 3 4 % in. In the past year, sales prices in Scotland have decreased for apartments in both rural and urban areas. The average apartment sold for 153,598 Euros in cities and 167,302 Euros in the countryside, a roughly 2 % decrease per square meter. The sales prices for houses In the rental market the situation was different; prices on both apartments and houses have increased and are still going up. The average square meter price for a house in the countryside was 7 % higher than it was in. S AND S 3-4.0% 3-4.0% 3-4.0% 3-4.0% 2,083 ( 1,780) 2,913 ( 2,490) 1,536 ( 1,313) 1,673 ( 1,430) 2,106 ( 1,800) 2,948 ( 2,520) 1,570 ( 1,342) 1,696 ( 1,450) 5.0% 5.0% 5.0% 5.0% 9.94 ( 8.50) 8.77 ( 7.50) 8.77 ( 7.50) 7.10 ( 6.07) 9.36 ( 8.00) 8.19 ( 7.00) 8.35 ( 7.14) 6.68 ( 5.71) PAGE ,463,46 ( 525,000) SOLD BY RE/MAX IN PEEBLES SINGLE DETACHED FAMILY HOME No Google Trends available due to lack of data. The market is expected to show an increase in both home prices and sales volumes for. Strong regional differences. PAGE 32

18 SLOVAKIA Slovakia 5,426, % 755 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Slovakia Cheap mortgages lead to higher demand and prices for apartments, with house prices holding steady in all regions. In the average sales price for an urban apartment was 157,500 Euros, but only 60,000 Euros for a rural apartment. Prices are expected to increase in. For houses, sales prices are steady, with the average price per square meter holding at 1,520 Euros in cities and 510 Euros in the countryside. Rental property prices have been increasing and will continue to grow by as much as 3 % for urban apartments, where the average monthly rent costs 750 Euros. Rentals remain steady, with prices for urban houses and apartments around 10 Euros per square meter and around 5 Euros for houses and apartments in the countryside. There has been no major change since. S AND S 5.0% 5.0% 1, , , , % PAGE ,000 SOLD BY RE/MAX IN BRATISLAVA LUXURY HOUSE No Google Trends available due to lack of data. Cheap mortgages will increase demand and prices. Real estate development is booming. PAGE 34

19 Spain 46,438, % 1,718 NET MONTHLY WAGE Source: Population and value of real estate activities vs. GDP: Eurostat, February. Average mean wage: Spain Prices for houses and apartments across the country show a steady market with potential growth from rising incomes, accessible financing, and the shifting political landscape in Europe. Since, sales prices for both houses and apartments have been increasing by about 4.6 % in urban areas, where the average price per square meter went up from 1,651 Euros to 1,727 Euros. Another increase of 1.8 % is expected for. In the countryside, prices have increased by only 1 %. In the rental market the picture is different; prices per square meter went up by 9.8 % in cities and 7.7 % in the countryside. The average monthly rent was 880 Euros and 600 Euros, respectively. S AND S Real estate properties No separate data per property type (house vs. apartment) available. 1.8% 1.8% 1,727 1,174 1,651 1, % 1.8% PAGE 35 Easy access to financing Positive evolution of household incomes BREXIT: positive effect as British citizens are largest number of foreign buyers GOOGLE SEARCH INTEREST According to Google Trends, in Spain the relative search popularity for apartamento (apartment) and terreno (land) is extremely low in comparison to casa (house); people search for houses nearly seven times more often House Land Apartment Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 36 SPAIN

20 Switzerland 8,325,194 4,775 NET MONTHLY WAGE Source: Population: Average mean wage: Switzerland With a mix of flat prices and declines, and limited access to financing, the overall real estate market is developing in unpredictable ways. cheaper on average compared to urban areas. For houses, the price per square meter in urban areas was 29 % higher than in rural areas. An average apartment in or around a Swiss city sold for 867,163 Euros in, with almost no difference in square meter prices between and. One had to pay 734,517 Euros for apartments in rural areas, 18 % Over 50 % of Swiss residents rent their homes, mostly apartments, and rental prices are expected to remain steady or decrease in. Only prestige properties in urban areas are expected to see increasing prices. S AND S 8,663 (9,243 CHF) 6,720 (7,170 CHF) 7,541 (8,046 CHF) 6,387 (6,815 CHF) 8,714 (9,298 CHF) 6,726 (7,177 CHF) 7,508 (8,011 CHF) 6,384 (6,812 CHF) No data available for house rental prices (19.00 CHF) (16.00 CHF) (19.00 CHF) (15.00 CHF) PAGE 37 5,810,781 (6,200,000 CHF) SOLD BY RE/MAX IN BRIONE SOPRA MINUSIO (TI) VILLA, 363 m 2 Unpredictable market development With fewer loans, more self-capitalized resources are needed Stagnant population growth due to legislative limitation on immigration GOOGLE SEARCH INTEREST In Switzerland, the vast majority of real estate searches on Google are in German or French. While relative search volume in German shows more interest in the term Wohnung (apartment) than in Haus (house), the French-speaking population seems to be looking for houses ( maison ) more often than apartments ( appartement ) Apartment (DE) House (FR) 50 House (DE) 25 Apartment (FR) Numbers represent search interest relative to the highest point on the chart. The trends graph is designed to show you whether popularity is increasing or decreasing and search terms are relative to each other. This doesn t convey absolute search volume. Source: Google Trends (Category real property listings), March. PAGE 38 SWITZERLAND

21 About RE/MAX Europe saw record-breaking sales and massive growth in the number of real estate agents working for RE/MAX. Now, with more than 18,000 agents in 1,700 offices across the continent, the RE/MAX network continues to be Europe s largest real estate network. With a total commission of more than 400 million Euros, the network s income has grown by 75 percent over the last four years. Michael Polzler, Managing Director of RE/MAX Europe, forecasts continuing growth in : We see that our clients requirements and needs are getting more specific and more numerous. To fulfill these and maintain our high-quality standards, the year ahead is fully devoted to further growth. Polzler s goal 22,000 agents by the end of will not only secure RE/MAX s leadership position in Europe, but will create even more opportunities for a career in real estate. 18,000+ 1, PAGE 39

22 Imprint Photos: alamy, dreamstime, Gap Interiors, House of Pictures, istock, living4media, Living Inside, RBA Images, shutterstock, 123RF: Brando Cimarosti (3), Andreas von Einsiedel (2), Olivier Hallot, José-Luis Hausmann, Marina Kaplan, Juta Kübarsepp, Bertrand Limbour (2), Christophe Madamour, Laura Rizzi, Anne-Catherine Scoffoni PMSCS Real Estate Franchising Inc. Alpenstr.15, 6304 Zug Switzerland remax.eu