Hello,
The summer holidays are over, at the end of the week we will celebrate Rosh Hashanah (the Jewish New Year), and as every month we are happy to bring you the hottest international real estate news from around the world.
This month we would like to draw your attention to:
A. A new electronic system for registering property transfers in Greece is about to start operating.
B. Deloitte published a report comparing apartment prices in 27 European countries, including Israel.
C. Rising apartment prices and rents - is this an opportunity for investors?
Happy New Year and enjoy the read,
Adv. Ilan Leibovitch and the office team
From November 1, real estate transfers will be carried out electronically only
On November 1 the pilot stage will end and the electronic registration system through which real estate transfers will be carried out will go into operation. The basic goal is for a property transfer to take between 2 and 3 days.
Through the new digital application, the notary will be able to receive all the documents required for the property being transferred. In particular, he will receive all the necessary supporting documents as well as the property's documents from all the agencies involved (AADE, the land registry, the Technical Chamber, EFKA).
Near the Steaua stadium: Hagag Europe bought land in Bucharest for NIS 32 million
Hagag Europe Development, controlled by Yitzhak Hagag, bought land of about 3.19 dunams (roughly 0.32 hectares) in southwest Bucharest, north of the stadium of the Steaua football club, for 8 million euros (about NIS 32 million), according to its announcement to the stock exchange. In parallel, a partnership agreement was signed under which the company will hold 51% of the project company and of the land, and the partner will be responsible for obtaining the building permit. A residential and commercial project of two buildings is planned on the land, with a built area of about 12,800 sqm, including about 80 apartments and retail space.
Source: Merkaz Hanadlan (Real Estate Center), Dror Nir Kastel, 23.07.23
Deloitte Property Index 2023 - comparing apartment prices in 27 European countries
Deloitte compares prices of new apartments, rents and other trends in residential markets in 27 European countries, including the Czech Republic. Key findings? Apart from Slovakia and the Czech Republic, home ownership is least affordable in Serbia or Estonia. By contrast, the cheapest home ownership in Europe in 2022 was recorded in Belgium and Norway, where residents need the equivalent of less than five gross annual salaries to buy a standard new home. They are followed by Denmark and Slovenia.
The top three capitals where it is most expensive to own a home are once again Amsterdam (15.8 average salaries), followed by Bratislava (14.5), which swapped places with Prague (14.2), now in third place compared with the previous year.
Israel tops the ranking of countries with the most expensive new real estate, with an average price of 5,701 euros per sqm for new construction. In second place is Austria (4,925 euros per sqm), followed by Germany (4,800 euros per sqm) and France (4,639 euros per sqm), and Norway (4,204 euros per sqm) closes out the top five. On the other hand, the cheapest new apartments are in Bosnia and Herzegovina (1,237 euros per sqm), Greece (1,330 euros per sqm) and Romania (1,417 euros per sqm).
The most intense price increase was recorded in Lithuania, where the average transaction value of new apartments jumped by 31.9%. Bosnia and Herzegovina came second with 27%, followed by Croatia with growth of 20%. The average price also grew in the Czech Republic, where it jumped by more than 12%, from 3,342 euros in 2021 to 3,753 euros per sqm. By contrast, the average price of new apartments fell in only three countries: England (-18.8%), Denmark (-9.7%) and, in part, France (-0.2%).
From London to Greece: the dream of owning an apartment is shelved, but rents are soaring too
The article describes how high interest rates and more expensive mortgages are pushing many Europeans, especially young people, back into the rental market, while rents in cities such as London, Paris and Berlin have reached record levels amid a shortage of supply. According to economists and researchers quoted in the article, the central problem is housing supply, and government attempts to regulate rents, for example in Lisbon and Berlin, may backfire. It also describes how young people up to age 29 are more likely to live crowded together with their families and to leave the parental home later, and that Romania has the highest rate of home ownership in Europe, following the purchase of apartments by their occupants after the fall of communism.
Source: Financial Times, Akila Quinio, 27.08.23
Accurate as of the issue date. Laws, tax rates and procedures change; check the current position before any decision.
Translated from the Hebrew original. עברית