Reforms Mean Greater Opportunities in the Eastern European Property Market
Eastern Europe has been named as the top region worldwide for real estate investors over the last year, according to an article published in The Independent. The countries of Eastern Europe have left behind many of the problems that once would have put off potential investors, and now offer secure and exciting investment opportunities.
Today’s Independent article points to a Knight Frank quarterly index that ranks Latvia, Bulgaria, Lithuania and Estonia in the top 10 for property price growth worldwide. Knight Frank’s head of residential research, Liam Bailey, says: “The price rises are part of a longer term process affecting countries in the old Eastern bloc”.
Among the countries mentioned for their investment potential is Poland, which was ranked number one by the Royal Institution of Chartered Surveyors’ annual European housing market survey, with price growth of 33% in 2006. Poland is an example of an Eastern European country with a fast growing economy and rising foreign investment.
Many of the concerns about purchasing in Eastern Europe that once deterred potential buyers no longer apply. Outdated banking practices and confusion over land ownership are no longer a concern for most countries. The performance of some countries is still affected by issues resulting from the early stages of their modernisation. Hungary, for example, was ranked 28th in the Knight Frank price growth index. However, this is partly due to the large supply of older, poor quality properties in the market alongside the newer properties of better quality, the resulting competition driving down prices in both sectors. Such problems are short-term issues and should not deter investors. The area as a whole has left behind the more integral problems of the past, such as prohibiting foreigners from buying property and the frequent lack of transparency in the purchase process, and is enjoying success as an investment destination as a result.
Today’s Independent article points to a Knight Frank quarterly index that ranks Latvia, Bulgaria, Lithuania and Estonia in the top 10 for property price growth worldwide. Knight Frank’s head of residential research, Liam Bailey, says: “The price rises are part of a longer term process affecting countries in the old Eastern bloc”.
Among the countries mentioned for their investment potential is Poland, which was ranked number one by the Royal Institution of Chartered Surveyors’ annual European housing market survey, with price growth of 33% in 2006. Poland is an example of an Eastern European country with a fast growing economy and rising foreign investment.
Many of the concerns about purchasing in Eastern Europe that once deterred potential buyers no longer apply. Outdated banking practices and confusion over land ownership are no longer a concern for most countries. The performance of some countries is still affected by issues resulting from the early stages of their modernisation. Hungary, for example, was ranked 28th in the Knight Frank price growth index. However, this is partly due to the large supply of older, poor quality properties in the market alongside the newer properties of better quality, the resulting competition driving down prices in both sectors. Such problems are short-term issues and should not deter investors. The area as a whole has left behind the more integral problems of the past, such as prohibiting foreigners from buying property and the frequent lack of transparency in the purchase process, and is enjoying success as an investment destination as a result.
posted by Obelisk International at 6:00 pm
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