Housing in the U.S. and in markets abroad is categorically intertwined, with conditions globally mirroring those happening at home: climbing prices, dwindling stock, and an outpouring of demand.
A series of reports recently released by Engel & Völkers highlight those similarities, as well as unique dynamics, of five international housing markets:
“Even though the level of construction has gone up, demand still significantly exceeds the availability of homes.”
– Oriol Canal, Managing Director
Engel & Völkers Market Center Barcelona
Homebuyers the world over are investing in Barcelona, with special attention paid to properties in sought-after Zona Alta—or “high area”—where price-per-square meter can reach up to 12,000 euros (approx. $13,680). Foreign buyers are also interested in Diagonal Mar, where prices can parallel those in Zona Alta, and Exiample, where prices are slightly less. International buyers in Barcelona originate from all corners of the globe, including Argentina, Bulgaria, China, France, the Middle East and Russia.
“Whilst the prime locations saw the most dynamic growth…the average locations are now catching up. We see this development as a positive sign that the residential property market in Madrid is now in a period of recovery.”
– Paloma Pérez Bravo, Managing Director
Engel & Völkers Market Center Madrid
Spain is also experiencing an influx of residents to Madrid, where the majority of homebuyers are searching in Centro, Chamartín, Chamberí, Hortaleza, Retiro and Salamanca. Chamartín boasts the highest price-per-square meter at up to 15,000 euros (approx. $17,100), specifically in the El Viso neighborhood, while other areas range from 8,000 euros (approx. $9,120) to 12,800 euros (approx. $14,595) per square meter. Foreign buyers in Madrid tend to be from Spanish-speaking countries, like Colombia and Venezuela, or from France, Switzerland or the UK.
“Compared to the previous year we have seen an increase of 25 percent in the average sale price in the southwest [of Majorca]. We are also seeing a rise in demand for properties over 20 million euros, including from new source markets such as the U.S. and Scandinavia.”
– Hans Lenz, Manging Director
Engel & Völkers Majorca Southwest
Home prices on Majorca rocketed in the last year, from 1.68 million euros (approx. $2 million) to 2.11 million euros (approx. $2.4 million). Properties with Mediterranean Sea views are most in-demand, especially those in Bendinat, Portals, Puerto de Andratx and Santa Ponsa. Foreign buyer interest generally extends from Great Britain, Germany and Switzerland.
“The political situation in Greece has improved significantly; we are therefore expecting property prices to rise further in the long term. We are optimistic that foreign buyers and investors will continue in the future to invest in holiday properties of intrinsic value on the island.”
– Georg Petras, Managing Partner
Engel & Völkers on Rhodes
The housing market on Rhodes is on the upswing, with homebuyer inquiries for oceanside vacation properties soaring 57 percent in the past year. Lindos, Pefkos and Vlicha are the most popular areas for buyers, with a 7,000-euro (approx. $7,980) price-per-square meter. Central Europeans, namely from Germany, are taking to the island, as well as buyers and investors from France and the UK.
“The majority of buyers are looking for a second home in Venice, or an investment property for short-term rental to tourists. Availability of premium properties in good and very good locations will remain extremely limited, meaning that there is no easing of the market in sight.”
– Mauro Lozza, Managing Director
Engel & Völkers Venice
International homebuyers comprise the majority of activity in Venice, where properties on the Grand Canal—in desirable areas such as Dorsoduro, San Marco and San Polo—can command a premium: up to 20,000 euros (approx. $22,800). Prices in Dorsoduro, also attractive to locals, and San Polo more often vary between 5,500 euros (approx. $6,270) and 7,000 euros, while prices in San Marco—a tourist hot spot—can go from 4,500 euros (approx. $5,130) to 10,000 euros (approx. $11,400) per square meter. Buyers in Venice typically hail from Austria, Great Britain, France, Germany and the U.S.
Image Credit: Engel & Völkers
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Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at firstname.lastname@example.org.
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