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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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US Exchanges Trading Negatively

Today US stock indexes are showing a decline. Statistical data from Europe, Japan, and South Korea have proved to be weak, which is rather disappointing for investors. Dow Jones Industrial Average index has lost 0.30, having dropped to 13068.39 points. Standard & Poor’s 500 has amounted to 1406.36 points, having lost 0.29 percent. Nasdaq Composite index has lost 0.49 percent, having dropped to 3066.10 points.

Publication date: 31 August 01:12 AM

Futures for US Indexes Decline

Today US stock indexes are showing a decline. This has been caused by weak statistical data from Japan and South Korea.

 
Since the start of the trading session Dow Jones Industrial Average index has dropped by 0.30 percent, having amounted to 13068.39 points. Standard & Poor’s 500 has lost 0.29 percent, having amounted to 1406.36 points. Nasdaq Composite has decreased by 0.49 percent – to 3066.10 points.
Publication date: 31 August 12:40 AM

European Exchanges Trading Negative

European stock exchanges are trading in minus. Indexes are declining for the third trading session in a row. Weak statistical data from Japan and South Korea has proved that economic growth will generally decline.

Independent index of the region’s largest enterprises Stoxx Europe 600 has lost 0.4 percent, giving amounted to 266.04 points. The index of eurozone largest enterprises Dow Jones Euro Stoxx 50 has dropped by 0.34 percent – to 2426 points. British index FTSE 100 has lost 0.3 percent, having amounted to 5726.4 points. French index CAC 40 has decreased by 0.26 percent – to 3404.97 points. German DAX has lost 0.63 percent, amounting to 6966.29 points.

Publication date: 30 August 10:04 PM

European Exchanges Close Differently

European trading session is over without any dynamics. Results of the meeting between German Chancellor Angela Merkel and Italian Prime Minister Mario Monti have disappointed investors. The politicians have not reached the common ground concerning the issue of providing a banking license to European mechanism of stability.

Publication date: 30 August 12:00 PM

USA Still Outpaces Russia And China In Terms Of GDP. Why?

 

 

As you know, Gross domestic product (GDP) is the main economic indicator.  The USA has been the world’s richest country (in terms of GDP) over the last 70 years. China, India and Russia occupies the 2nd, 3rd, and 6th place correspondingly (the US GDP is 1,5 , 3,4 and 7 as big as the GDPs of these countries).
 
Are the Americans more hardworking than Chinese (who work 12-16 hours a day) or smarter than the Russians (who learn the multiplication table in the 2nd grade while most US pupils have difficulty learning it even in the 5th grade)?  What are the real reasons?
 
Masterforex-V Academy will help us to find out the truth.
Publication date: 30 August 11:12 AM

US Exchanges Slightly Positive

American stock exchanges are open in a plus, although the indexes have slightly increased. “Green” trading session is favoured higher expectations of economic growth made by US government.

Publication date: 30 August 10:29 AM

APX Trading Within “Red” Zone

Today Asian stock exchange has chosen the “red colour”. Major indexes are falling because of weak statistical data from Japan and South Korea. Independent stock index of the region MSCI Asia Pacific has lost 1 percent, amounting to 118.16 points. Japanese Nikkei 225 has lost 1.11 percent, Hong Kong Hang Seng – 1.33 percent, South Korean Kospi has decreased by 1.29 percent, Australian index S&P/ASX has lost 1.3 percent.

Publication date: 30 August 10:01 AM

European Indexes Decline

Today European stock exchanges have opened with a minus. Investors are motionless in the expectation of statistical data from the USA and Friday speech of the Head of Federal Reserve System (FRS) Ben Bernanke. Independent index of largest European enterprises Stoxx Europe 600 has lost 0.3 percent, having dropped to 266.64 points. The index of largest enterprises in eurozone Euro Stoxx 50 has lost 0.54 percent, having amounted to 2428.88 points.

Publication date: 29 August 03:06 AM

Asian Exchanges Close with No Dynamics

Asian stock exchanges failed to find common dynamics during Tuesday trading session. Information about target economic growth in Japan, which has proved worse than expected, has had a negative impact on stock exchange.

Publication date: 28 August 06:50 AM

US Exchanges Fail to Find Common Dynamics

American stock exchanges have started the week without common dynamics. Monday trading session started with a minor rise. This day Dow Jones Industrial Average index has dropped by 0.26 percent – to 13123.48 points, Standard & Poor’s 500 has lost 0.09 percent, amounting to 1409.9 points, and Nasdaq Composite has risen by 0.05 percent – to 3071.22 points.

Publication date: 28 August 04:57 AM