Uncertainty has become the ongoing theme in this pandemic. COVID restrictions are constantly changing due to the Omicron variant that impedes the recovery of some industries in the world. However, some countries prove to be attractive for investors in real estate, mainly Europe.
Europe is gaining momentum in the real estate industry. In 2021 alone, Berlin, Paris, London, and Frankfurt are ranked as the highest real estate prospects since their market performance and quality is improving. From a country perspective, the UK, Sweden, and Germany are ranked highest in commercial property investments.
Added by the PwC Emerging Trends in Real Estate Europe Report, investors believe that Europe’s core cities, especially German cities, offer the most liquidity and stability. Hence, Germany’s big four – Hamburg, Berlin, Munich, Frankfurt, Central London, and Paris attract the most investors.
Because of Germany’s stability and liquidity in this pandemic, its real estate value increased by about 8.1% in 2020-2021 alone. Much of the increased value has to do with the country’s low-interest rates that increase the demand for commercial spaces.
Thus, the real estate of this country is stable because of the government rules, legal framework, and reasonable policies even in this pandemic. It is even predicted that the real estate value will even soar high in the years to come.
Another country stealing the spot is the United Kingdom. From 1992 to 2021, its average real estate rate is 4.4%. The reason is also due to the low-interest rates in mortgages in the country. Along with the high average income among the citizens, the demand for commercial spaces increased. Thus, the UK is an attractive location for investors and entrepreneurs for investments.
Hence, property investments in Europe are sound because they are focused on the office and housing real estate market. In addition, Europe has an average monthly rent of 1,500 euros for a fully-furnished one-bedroom apartment. While family and offices are most common for investors, alternative ones such as student housing, senior housing, and data centers are gaining popularity in 2021 alone. In fact, data centers are considered as the top property investment prospect in Europe.
European real estate is going at a stable rate since it is working its future role in improving the economy while facing the challenges and uncertainties of the pandemic.
Consequently, office spaces are the largest investment turnover in the world. While affordability remains to be an issue when it comes to buying office spaces, the demand is still going stronger. Nevertheless, the stable return that real estate generates remains the key attraction point for investors and entrepreneurs.
Aside from the real estate industry, COVID-19 boosted other industries, most especially the IT industry, logistics, and digital marketing. However, due to the changing government regulations, such as ongoing lockdowns and support to employees and businesses, it remains challenging to maintain a sound economy in the long term.
This is also true for real estate, where it should be attracting investors to help the country prosper in the long term. In fact, the upturn in this industry proves to be attracting investors. However, Europe’s property sector is facing long-term structural changes in assets.
Regardless, the real estate industry is an industry that generates acceptable returns with low-interest rates.
In fact, recent survey predicted that 55% of the investors are expected to put their money on real estate in Europe in 2021. This means that there will be more potential investors for the European, real estate market in 2022 and the upcoming years.
Besides some caveats that come with investing in a real estate industry, it still generates returns favorable to investors and entrepreneurs. While they should be looking at the current challenges driven by the pandemic, it’s still ideal to invest, especially in real estate in Europe.
One company thriving in the real estate market amidst the pandemic is Vivion S.à.r.l. It is a real estate company with operations across Europe, especially Germany, Netherlands, and UK. The market value of Vivion amounts to over 3 Billion Euros. Investors and entrepreneurs would undoubtedly want to consider Vivion.
The success behind Vivion S.a.r.l is due to Amir Dayan’s expertise in the real estate industry. Amir Dayan came from Tel Aviv, Israel, and currently lives in Amsterdam, Netherlands. A businessman, real estate professional, investor, and shareholder, Amir Dayan proves that Vivion is simply one of his successful investments. He is also owns Lianeo Real Estate, Ouram S.a.rl, and Golden Capital.
