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Monday, 21 August 11:49 (GMT -05:00)



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European Housing Market Outlook 2013


 

Foreign investors have always treated Europe like tourists treat places of interest.  That is why residential property in Europe is especially popular among foreigners (especially among those well-off people from the ex-USSR). They like buying apartments and villas in resort coastal areas of Spain , France, Italy and other EU countries. Moreover, residential property gives foreigners more rights in the Schengen Area.
 
 
Market Leader and Masterforex-V Academy tried to take a look in the near future of the EU housing market. First, let’s overview the market situation in 2012.
 
European Housing Market. 2012
 
The price changes weren’t smooth and unidirectional throughout the year.  Most housing markets in the EU were bearish. In Greece, Spain , Portugal , Netherlands and other eurozone states, the local housing markets are still declining amid uncertainty and instability caused by the continued eurozone crisis. People simply cannot afford to buy residential property. Some of them fail to pay their mortgage loans. The housing markets in Croatia and Latvia are the frontrunners in terms of price decline.
 
According to GlobalPropertyGuide.com, which monitors housing markets around the globe, 14 out of 23 monitored European housing markets are in decline. Only 9 of them are bullish. Moreover, the world’s 9 weakest housing markets also belong to Europe.
 
In particular, Greek residential property depreciated by 12.47% in 2012. Spanish property depreciated by 11,87% during the reporting period. At the same time, the Bulgarian and Turkish housing markets were down by 6,84% and 4,96% correspondingly.
For example:



1.      Spanish residential property. A villa in Costa Blanca North (Moraira), 240 sq. meters, 200 meters away from the sea.  It cost €577 500 in 2011. The current price is €525 000. This is a 10% decline.
 
 
 
2.      An apartment in Costa Blanca South (Punta Prima), 85 sq. meters, 200 meters away from the sea.  It cost €253 000 in 2011. The current price is €230 000.

 

 

 

 

1.       Turkish residential property. A villa in Antalya, 224 sq. meters, 200 meters away from the sea, personal parking lot. It cost €351 500 in 2011. The current price is €325 000.


 

 

 

 

1.      A townhouse in Antalya , 135 sq. meters, 500 meters away from the sea, swimming pool, developed infrastructure.  The current price is €239 000. This is a 9% decline. As compared to 2011.
 
 
 
The situation in Switzerland and the coastal area of France remain relatively stable. The housing prices in those regions are traditionally around the top of the price range. The demand of the residential property there is quite stable. The same can be said about several areas in Italy as well as London and Paris. 
 
Most experts assume that more investors will get interested in hotels in 2013.  
 
 

 

 

 

European Housing Market Outlook 2013
 
Experts anticipate a decline in the following European housing markets:
·         Spain (-40%)
·         Greece (-20%)
·         Italy (-15%)
 
The markets will keep showing weakness because of the crisis phenomena that can be seen in the mentioned economies. Some of them say that the sellers of the most liquid housing assets may wait till the situation improves.



1.      Italian residential property. They say there is a clear tendency that implies higher demand for luxurious residential property like villas, castles, mansions, penthouses.
 
At the same time, the prices on mid-class property are falling.  Moreover, more people start investing in fixed property under construction because the price is much lower than the one that will be set afterwards.
 
As for the north of Italy, which is usually considered to be the more prosperous area, it seems to be suffering from multiple crisis phenomena as well. Housing prices in the area are expected to fall in 2013.
 
The picture above represents a villa in Camaiore. In 2011, it cost €3 780 000. The current price is €3 600 000.
 
2.   Bulgarian residential property. They say the housing market will stabilize in 2013. The market used to show weakness because of undeveloped legislation.
 


 

1.      French residential property. The French housing market is expected to see stagnation in 2013.Even though some housing units located in resort areas may become more expensive, the increase won’t exceed 5-7%. The rest of the market won’t see any major changes.
 
 
The picture above represents an apartment in Nice. In 2011, it cost € 812 500. The current price is € 650 000.
 
 
In general, experts say that the overall tendency in Europe’s housing market will be positive. However, it is reasonable to purchase residential property for personal use only because leasing cannot be const-efficient at the point while it will be impossible to resell the property at a higher price in the near future.
 
 

 

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Trump’s Policies Make USA Lose Their Leading Position in the West

More and more international experts are concerned about Donald Trump’s policies. Some of them are concerned that because of him and his actions, the USA may lose their leading role in the Western world.  

 

 

According to Fareed Zakaria, political expert, CNN host and columnist for The Washington Post, Trump’s recent political decisions have made the European Union so united that Putin could never have dreamed of. Even though he is not going to make the Western world collapse, the USA may still lose the number-one status in the Western world.

Publication date: 31 July 12:09 PM

Does China Oust Russia From Central Asia?

As the situation in Afghanistan is getting worse, this is raising a lot of concerns in the international expert community. The Islamic terrorist threat may spread from there to Russian and China, they say.

 

 
According to a Norwegian observer for Dagbladet, there exist 5 countries in Central Asia that can be seen as potential threats to Russia and China. The thing is, the Islamic terrorism may well spread from those countries to their neighbors. They say that Afghanistan is now the biggest potential threat since the amount of armed conflicts in the country are getting more and more frequent and tough. As Taliban (the local terrorist organization) is said to be sponsored and suppled with arm and ammo, the USA seems to be putting the blame for this on Russia.
Publication date: 29 July 11:53 AM

China Invests Heavily In Africa

You probably know that has been investing in a number of countries of strategical importance. There is a lot of African countries on the list. According to several observers, Chinese banks have given such countries over 77 billion euros since 2000.

 

 
Not so long ago, there was a documentary broadcast on the national TV. The documentary is about a railway line in Kenya built by China Road and Bridge Corporation. It praises Chinese engineers and tells the viewer that the Chinese government is ready to support African countries on their way to economic growth.
Publication date: 24 July 11:46 PM

Chinese Economy Is Way Stronger Than Trump Thinks

The Chinese economy has got much stronger. It can now even be compared to the American one, which is viewed to be the world’s strongest economy. Washington clearly underestimates Beijing when saying that the China has been flourishing in the international markets exclusively at the expense of unfair trade.

 

 
Publication date: 23 July 10:48 AM

British Start Getting Disappointed with Brexit, Soros Says

Last year’s Brexit referendum has become a major challenge for the British government, George Soros says. He says that more and more British citizens start getting disappointed with the Brexit.

 

 
The world-famous financier and CEO of Soros Fund Management assumes that now the economic reality starts revealing the real state of affairs and debunk their delusions related to the happy living outside of the European Union. More than 12 months ago, the advocates of the Brexit scenario were trying to persuade people that this choice won’t affect people’s standards of living. Well, since then, the government has been trying to implement this promise at the expense of increasing the internal debt.
Publication date: 14 July 02:40 AM

Two Reasons Why Russia Keeps Losing Influence Over Post-Soviet States

After the USSR ceased to exist, the Kremlin was counting on retaining their influence in the region. However, the truth is that Russia as the major successor to the USSR has been losing its influence over the remaining post-soviet states. There are 2 reasons for that.

 

 
According to the related report recently published by private American analytic company Stratfor, there is a range of new tendencies making it difficult for Russia to stay influential in the post-soviet region, especially when it comes to Ukraine. The two major reasons for that are believed to be the declining role of the Russian language in the region as well as the existing threats of mass protest inside Russia itself.
Publication date: 06 July 01:42 PM

Business with China: New Reality after Blocking Yandex and VK in Ukraine

Ukrainian President Petr Poroshenko has expanded the list of sanctions against individuals and legal entities from Russia. To be more specific, Ukraine imposed sanctions on several Russian online companies, including Yandex, which is Russia’s biggest IT company, as well as some other popular web services like VK, Odnoklassniki, and Mail.ru Group. According to the presidential decree, Ukrainian Internet providers are forbidden to grant access to those blacklisted websites.

Publication date: 06 July 01:13 AM

China Doesn’t Need Russian Gas and Pipelines

Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

Publication date: 05 July 11:15 AM

Mass Media on Forthcoming Trump-Putin Meeting

For those of you who don’t know, the first official meeting between Donald trump and Vladimir Putin has been confirmed. It’s planned for July 7, during the G20 summit in Hamburg, Germany.

 

 
Some observers say that the White House did the Kremlin a favor by being the first one confirming the official meeting during the G20 summit. This announcement helped the sided to get of the rumors around the situation and helped Moscow to save face in the Russian media space.
Publication date: 05 July 06:24 AM

Putin and Trump Part Ways

According to The Daily Telegraph observer Con Coughlin, even if Donald Trump used to seek ways to improve the relations with Russia, today he is probably going to really abandon this idea. The thing is that not so long ago, the U.S. hit a Syrian fight jet, the one belonging to Bashar Asad’s troop. Since Putin and Asad are allies, this fact is definitely going to affect the process of improving the U.S.-Russia relations, and probably suspend this process for the near future.
 
Publication date: 29 June 11:50 PM