Real Estate in Europe will grow slowly and steadily in 2021, Opines Globally Famous Astro-Strategist, Hirav Shah.
Low interest rates and a future of working from home, or at least more flexible office arrangements, caused many Europeans to relocate to suburban areas with lower costs and a higher quality of life.
The pandemic-driven shifts ignited a residential housing boom and novel financial technology played a huge role in the surging market, Opines Shah.
Real Estate Scenario in Europe
Just a few years ago, everyone was predicting the end of Europe, especially the end of continental Europe. But the world has still seen ever-increasing property prices as investors flock to the markets; Berlin, Lisbon, Dublin, Rotterdam, and Zagreb are among the European cities experiencing high levels of growth.
Real estate markets in Europe, however, whether commercial or residential, are actually very expensive. Considering that crises are high and property assets are trading at incredibly low property yields; this makes the underlying value of properties very high.
So how is it possible that a continent experiencing modest economic growth with still-low inflation – though improving, albeit slowly – continues to attract global investors?
The answer is simple: it’s all linked to the monetary policy of the European Central Bank (ECB), and hence it’s wonderful news amidst the pandemic today. The ECB has a loose monetary policy of keeping interest rates artificially low; it decided to keep them unchanged at 0.00%, 0.25% and -0.40% for as long as necessary.
Investors, therefore, don’t see any other possibility than investing in real estate. Buying stocks can be too risky as they are volatile, and bonds are expensive considering yields are still hovering around very low levels.
Europe Real Estate Future
The lifting of lockdown and travel restrictions in Europe will revive real estate assets, improve income visibility and attract cross-border investments in 2021, Says Real Estate Astrologer, Hirav Shah.
Now, Hirav Shah outlines the important points below.
1.Life Sciences in Europe
Investors have been drawn into European real estate dedicated to life sciences, which spans sectors such as biomedical devices and pharmaceuticals, by an ageing population and strong academic research in the region.
But the COVID-19 pandemic has fast-forwarded the script.Life sciences have never been more under the spotlight because of what we’ve all had to endure.
Investors say there is demand in both urban centres and out-of-town science parks in Britain and other parts of Europe to accommodate an industry which tends to be recession-proof.
2.New Avenues in Europe
Real estate money is looking for new avenues as retail property and offices face the challenge of people increasingly shopping and working from home, analysts and investors say.
Commercial real estate investment volumes in Europe totalled 277 billion euros ($333 billion) in 2021, up 17% from a year earlier.
3.Housing Market Recovery in Europe
The European housing, or residential real estate, market has recently shown clear signs of recovery, with an increasing house price being the main trend.
In 2021, the residential property price development showed the biggest increase in Portugal (an increase of 12.5 percent within 2017) and Ireland (11.8 percent), followed by the Netherlands (8.2 percent) and Sweden (eight percent). France and the United Kingdom had the biggest average price of residential property in Europe as of July 2021.
More than one and half year after the pandemic crisis, it seems the majority of property markets in Europe have gained momentum with only a few still on the mend or lagging behind.
4. Demand in Europe
The demand for larger homes has risen since the pandemic hit Europe. The situation necessitated a large enough home to support activities such as office work, study area, and entertainment.
Now, people want to live, exercise, and enjoy new ways. Consumer demand is getting modified due to these factors, leading to a rise in demand for larger homes.
5.Boost In Buyer Sentiment
Furthermore, nuclear families are considering not their immediate requirements but those that will arise in the coming years; so, they are looking for larger and spacious units. Even those on the fence have begun to buy and seek larger homes than previously considered due to budget constraints. Also, the contribution of low home loan interest regime cannot be denied in boosting the buyer sentiment.
Best Places To Invest
Main European capitals such as London and Paris are considered a safe haven for real estate. The UK, France, and Germany, for example, took the bulk of investment volume accounting for more than 70% of transactions prior to 2020 and remain the firm favorites for investors.
Certain neighboring countries in southern Europe, as well as some countries in the north and in central Europe, had more volatile markets earlier in the decade but are now experiencing growth, in this year.
If 2020 was the year that changed everything, 2021 may be the year where change becomes the ‘new normal’ and adapting to this ‘new normal’ will require imagination, innovation, digital transformation and “Astro-Strategy”.
Today Hirav Shah’s Astro-Strategy is hailed by the business world for being a catalyst in transforming many businesses, including real estate.