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Emerging Trends in the European Market for Real Estate Investors

‌According to Grand View Research, the global real estate market is valued at around $3.7 trillion. It is one of the biggest markets in the world and is welcoming new investors every day. Thus, the market keeps growing bigger every day and, with that, welcomes newer trends every day.

The European real estate market, much like the world, also has changing trends. For instance, European governments are currently inflating real estate prices, as reported by Investigate Europe. As a result of that, there’s an escalating housing crisis that the European countries need to prepare for.

The European real estate market provides an excellent overview of how the global version of this sector reacts under different circumstances. From rising prices and interest rates to try to tackle the growing demand for open and green spaces, the European real estate trends help other real estate investors across the world understand what the next big thing in this market will be.

Thus, anyone looking to study and understand real estate should look no further than the European real estate market.

Having said that, let’s look at a few emerging trends in the European market for real estate investors and see how this part of the world is handling this particular market in times of a global pandemic and the war in Ukraine.

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House Prices Will Continue to Climb as the Pandemic Continues to Cool Down

As the pandemic continues to cool down, house and property prices in Europe will start climbing and going back to normal. People will also be eager to purchase and invest in real estate, given that many of them were unable or uneager to do so in the past couple of years despite having the means to afford those purchases.

Studying the Georgian real estate market will give us a good idea regarding this situation.

An interview with David Kezerashvili, a real estate investor and entrepreneur, shed light on some of the Tbilisi real estate market trends after the pandemic. It was seen that the people in Georgia, particularly Tbilisi, were quick to adapt to the pandemic conditions. The real estate market over there, although initially took a sharp dive, was quick to recover as well.

While it’s still in recovery, experts like David Kezerashvili believe that the recovery will be fast, which it has been. The rest of the European real estate market is likely to follow a similar improvement pattern.

The War in Ukraine Will Slow Down the Real Estate Market Growth in Europe

According to CNBC, the war in Ukraine has killed over 6,500 civilians. On top of that, it’s reported that around 13,000 Ukrainian soldiers have been killed so far. This war is having far-reaching consequences, and Europe’s real estate sector is feeling the most heat.

Because of the war, there’s an energy crisis worldwide, including in Europe. The surging energy prices are driving up real estate development costs. At the same time, as the world expects a global recession, occupancies and rents will be falling.

Thus, considering all that’s happening in the world right now, Europe’s real estate market is likely to slow down.

Millennials are Investing  in European Real Estate As Well

Millennials with money and resources are more than eager to ease into a European lifestyle, and the first thing they’re doing in pursuit of this lifestyle is investing in real estate.

These millennials are entrepreneurs or top executives with good purchasing power. They’re working in top positions at various tech firms or overseeing operations of their family-owned business. This particular group of people often sees everything in terms of return on investment (ROI). That means when they invest in something, they expect a return.

As for real estate, these millennials will either use these properties as their personal homes or even as vacation houses.

People are Growing Fond of Larger Homes

The COVID-19 pandemic taught people the importance of coping with monotony at home. Whether you’re staying in and working from home or just enjoying a vacation, having a large house doesn’t hurt. Europeans find such large houses a necessity now.

Whether it’s owning a whole residential property by themselves or staying in residential buildings with a lot of space for a few people, Europeans are buying large properties.

In doing so, they tend to feel a lot less bored at home if they’re asked to isolate or work from home.

As a real estate investor, you should know that Europe has a lot going on in the real estate sector and that it’s difficult to stick to certain trends when investing in this market. However, being aware of the ones mentioned above should be enough for now.

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