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European Residential Markets

International residential markets, with diversed risk profiles, categorised by continent which we list as key destinations for residential investment and for which we periodically assess for risk and opportunity.

Italy

Residential Market Facts
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  • Price (sqm):€ 8,439

  • Rental Yield:2.37%

  • Rent/month:€ 1,999

  • Income Tax:17.25%

  • Round trip Cost:16.13%

  • Cap. Gains Tax:0.00%

  • Landlord and Tenant Law:

  • Rating is based on a detailed study of each country’s law and practice.

  • Pro-Tenant


Venice has the country's most expensive houses with an average price of around €4,380 (US$ 5,426) per sqm., followed by

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  • Florence with €3,519 (US$ 4,359) per sqm,

  • Bolzano-Bozen with €3,446 (US$ 4,269) per sqm,

  • Milan with €3,365 (US$ 4,169) per sqm,

  • Rome with €3,176 (US$ 3,934) per sqm and

  • Naples with €2,723 (US$ 3,373) per sqm.

Residential assets in Italy represent a culture that is one of the oldest, most enduring and once of the most pervasive, reaching all aspects of western civilization from the arts, architecture, food, wine, furniture, auto manufacturing, fashion and coffee.

 

The lifestyle opportunity delivered by Italy remains unmatched. 

4 bedroom apartment, Citta Alta, Bergamot.

Mansion apartment in Bergamo, Italy. Principal living spaces total 240 sqm over two floors, with adjoining terraces adding an additional 120sqm. 

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The property is arranged with a large living room, kitchen, 4 bedrooms, 4 bathrooms, laundry room, cellar, service apartment and wide double garage. 

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Price 3.2m Euros. 

Germany

Residential Market Facts

 

  • Price (sqm):€ 5,907

  • Rental Yield:2.95%

  • Rent/month:€ 1,305

  • Income Tax:2.71%

  • Round trip Cost:12.71%

  • Cap. Gains Tax:0.00%

  • Landlord and Tenant Law:Pro-Tenant

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Frankfurt apartment prices; €3,167 (US$3,694) per sq. m.  Munich, apartment prices €5,839 (US$6,811) per sq. m. North-East Germany: Berlin apartment median price; €3,593 (US$4,191) per square metre (sq. m.).

Spain

Residential Market Facts

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  • Price (sqm): € 4,382

  • Rental Yield: 4.70%

  • Rent/month: €2,060

  • Income Tax: 19.00%

  • Roundtrip Cost: 11.09%

  • Cap. Gains Tax: 19.00%

  • Landlord and Tenant Law: Strongly Pro-Tenant

 

House sales in Spain are expected to rise by between 10% and 15% to reach about 550,000 transactions in 2018 -2019, according to TINSA. Nationwide house prices have experienced years of consecutive growth, according to the Instituto de Práctica Empresarial (IPE). Madrid registering the highest increase of 10.8%, followed by Castilla y León (8%) and the Canaries (7.7%). Catalonia's house price growth will slow to 4.9%, mainly due to political tensions.

France

Residential Market Facts

 

  • Price (sqm.): € 12,796

  • Rental Yield: 2.79%

  • Rent/month: € 3,564

  • Income Tax: 10.00%

  • Round trip Cost: 18.45%

  • Cap. Gains Tax: 33.30%

  • Landlord and Tenant Law: Strongly Pro-Tenant

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The French housing market is expected to strengthen further  with strong demand buoyed by low interest rates, coupled with improving economic conditions; house prices are likely to rise by 3% to 5%. France's GDP  is experience minor growth at lower digit figures of around 1.5 - 2.0%. 

Monaco

Residential Market Facts
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  • Price (sqm):€ 44,522

  • Rental Yield: n/a.

  • Rent/month: n/a.

  • Income Tax: 1.00%

  • Roundtrip Cost: 17.57%

  • Cap. Gains Tax:0.00%

  • Landlord and Tenant Law: Pro-Landlord

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Since the beginning of 2006, prices have risen by an average of 51% during the 30 months to June 2008. Monaco's property prices had risen by over 10% a year during the previous decade. Rents have stayed static during this period. The result is that Monaco's rental yields, which were already the lowest in Europe, are now down to about 1.50%. They are expected to remain at  levels of  1.3% to 1.75% return on investment per annum.

 

Apartments in Monte Carlo cost on average EUR 35,000 to EUR 51,000 per square metre (sqm.), or EUR 3,252 to EUR 4,767 per square foot, tending to be more expensive per metre at the larger end of the scale. A 50 sqm. apartment (430 sq. ft.) costs around EUR 1,740,000 to buy. A lot of money for a shoebox! A bigger apartment of 120 sqm. (1,291 sq. ft.) costs about EUR 5,340,000 to buy.

Malta

Residential Market Facts
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  • Price (sqm):€ 4,576

  • Rental Yield:3.37%

  • Rent/month:€ 1,540

  • Income Tax:23.33%

  • Roundtrip Cost:18.56%

  • Cap. Gains Tax:12.00%

  • Landlord and Tenant Law:Pro-Landlord

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House price rises were experienced by all property types in the last few years: Apartments; 15.86%.  Terrace houses; 13.33% , Maisonettes experienced the highest price surge, rising by 20.42%. "Other houses", consisting of townhouses, houses of character and villas, however, had a relatively low growth of around 1.96%. All figures relative to the period up to Q4 2016.


Maltese property has been on the upswing for the past three years. These latest price rises were attributed by the central bank above all to the Individual Investor Programme (IIP) and to the stamp duty exemption for first-time buyers. One of the major causes of house price rises, the Individual Investor Programme, was introduced in the government's November 2013 budget, and targets high net worth individuals.

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Middle Eastern Residential Markets

International residential markets, with diversed risk profiles, categorised by continent which we list as key destinations for residential investment and for which we periodically assess for risk and opportunity.

UAE

Residential Market Facts

 

  • Price (sqm): $5,918

  • Rental Yield: 5.19%

  • Rent/month: $3,070

  • Income Tax: 5.00%

  • Roundtrip Cost: 6.01%

  • Cap. Gains Tax: 0.00%

  • Landlord and Tenant Law: Pro-Tenant

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Dubai house prices  fell 6.4%, apartment sales prices fell by 3.82% during the year to Dec 2017; Villa sales prices dropped by 3.83%. In Abu Dhabi, the all-residential property price index has fallen even further, posting a 9.02% decline in Dec 2017. Apartment sales prices suffered a sharp price decline of about 10.23% in 2017. In contrast, villa sales prices increased by 3.24% (0.5% inflation-adjusted).

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Foreign nationals are now allowed to buy freehold properties in designated areas in Dubai. Gulf Cooperation Council (GCC) nationals are allowed freehold ownership anywhere in the Emirates. Abu Dhabi's government introduced new regulations in 2014 allowing foreigners to own property in designated investment zones on a freehold basis. 

Lebanon, Beirut

Residential Market Facts

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  • Price (sqm): $ 3,693

  • Rental Yield: 4.51%

  • Rent/month: $ 2,082

  • Income Tax: 3.03%

  • Roundtrip Cost: 5.90%

  • Cap. Gains Tax:10.00%

  • Landlord and Tenant Law: ----

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In 2017 the number of sales was up by 14.5%, and the total value of sales was up 18.5%. (Directorate of Real Estate and Cadastre). In Beirut, which has the most expensive housing in Lebanon, declined: 5.6%. In Metn, growth: 3.9% In Kesserwan, growth: 11.3%. In Baabda, Decline: 10%. The rather weak performance in terms of prices can be attributed to developers offering price discounts averaging around 20%. Return expectations are around 4.5%; larger properties will yields less, at 3.5%. Central Beirut apartments are now, in 2013, priced at around US$3,700 to US$4,700 per square metre. Foreign ownership of real estate property is allowed in Lebanon. Foreigners can acquire up to 3,000 square meters (sq. m) of land. 

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Tax: Rental Income: Net rental tax 15%. Capital Gains: Capital gains tax 10%. Inheritance: Inheritance progressive rates from 3% to 45%.

Jordan

Residential Market Facts
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  • Price (sqm):$ 1,455

  • Rental Yield:8.82%

  • Rent/month:$ 1,605

  • Income Tax:15.00%

  • Roundtrip Cost:10.94%

  • Cap. Gains Tax:0.00%

  • Landlord and Tenant Law: Pro-Landlord

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In Amman's major districts: In Abdoun, the capital city's most affluent area, apartment prices rose by 2% y-o-y in 2016, to an average of JOD1,375 (US$1,938) per square metre (sq. m), according to Asteco. In 4th Circle, the average apartment price increased 1% y-o-y to JOD1,325 (US$1,867) per sq. m. last year. In Sweifieh, the average apartment price was unchanged in 2016 from a year earlier, at JOD1,188 (US$1,674) per sqm. In Um-Othainah, the average apartment was unchanged in 2016 from a year earlier, at JOD1,250 (US$1,762) per sqm. In Al-Rabiah, apartment prices were also stable at an average of JOD 1,100 (US $1,550) per sqm. In Der Ghabar, the average apartment price was also unchanged at JOD1,200 (US$1,691) per sq. m.


Property demand remains weak. In 2017, real estate transactions were down 6% from the same period last year.  Approx 1600  properties were purchased by foreign investors in 2017, far lower than the 3600 transactions recorded in the previous year. Apartment sales represented about 76% of the total transactions while the remaining 24% were for land sales.  Iraqis accounted for most investments, at JOD 31.7 million (US $44.7 billion), followed by Saudis (JOD 30.5 million or US $43 million), Lebanese (JOD 5.7 million or US$8 million) and Syrians (JOD 5.2 million or US$7.3 million).

To stimulate the housing market, the government has recently introduced tax saving measures.

Asia, Australsia

Hong Kong

Residential Market Facts

 

  • Price (sqm): $28,570

  • Rental Yield: 2.35%

  • Rent/month: $7,267

  • Income Tax: 11.40%

  • Roundtrip Cost: 34.11%

  • Cap. Gains Tax: 0.00%

  • Landlord and Tenant Law: Pro-Landlord

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Hong Kong's property market continues to rise, as house prices and residential construction activity increases. boom. Demand is surging. House price rises are accelerating. Residential construction activity is rising sharply.  

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  • Apartments smaller than 40 sqm: HK$170,159 (US$21,702) per sqm.

  • 40-69sqm apartments:  HK$170,853 (US$21,791) per sqm. 

  • 70-99.9 sqm Apts: HK$205,418 (US$26,199) per sqm.

  • 100-159.9 sqm Apts:  HK227,861 (US$29,061) per sqm.

  • Apartments larger than 160 sqm: HK$294,342 (US$37,540) per sqm.

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House prices have tripled from 2003 to 2015; during 2017, the total number of property transactions increased 12.6% to 61,591 units.  From 2008 to 2013, house prices skyrocketed by 134% (95.7% inflation-adjusted), driven by a flood of money in the wake of the global financial crisis.

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New Zealand 

Residential Market Facts

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  • Price (sqm): $ 3,438

  • Rental Yield: 5.48%

  • Rent/month: $1,885

  • Income Tax: 0.94%

  • Roundtrip Cost: 4.52%

  • Cap. Gains Tax: 0.00%

  • Landlord and Tenant Law: Neutral

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New Zealand saw spectacular house price rises of about 114% (82.6% inflation-adjusted) from 2001 to 2007, then another five  years of double digit growth between 2012-2016.  

 

Rental Income: Rental income is taxed in New Zealand at progressive rates, from 10.5% to 33%.  Capital Gains: Not normally taxed in New Zealand. Inheritance: There is no estate duty payable.  Residents: Taxed on their worldwide income at progressive rates, from 10.5% to 33%.

Australia

Residential Market Facts

 

  • Price (sqm): $10,711

  • Rental Yield: 2.52%

  • Rent/month: $ 2,701

  • Income Tax: 24.38%

  • Roundtrip Cost: 12.46%

  • Cap. Gains Tax: 45.00%

  • Landlord and Tenant Law: Neutral

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Australia is one of the most attractive places to live, judging by all indices of income, human development, healthcare and civil rights but the IMF slashed its economic growth forecast for Australia to 2.2%, significantly less than the 3% forecast six months ago.  Rental returns on apartments in Sydney are low, at 2.8% to 3.7%

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Taxes: Rental income: For nonresidents landlords is taxed at progressive rates, range from 32.50% to 45%. An owner may also be required to pay a land tax annually, depending on his property classification for tax purposes and property location. Capital Gains: Individuals are subject to a 50% reduction of the taxable gain if the asset is held for at least 12 months. Capital gains follow the individual income tax rates, at rates from 32.50% to 45% for non residents. Inheritance: There are no direct taxes.  Residents: Taxed at a progressive rate on their annual income, from 0% to 45%, and are required to pay a 1.5% Medicare levy.

Singapore 

Residential Market Facts

 

  • Price (sqm): $13,748

  • Rental Yield: 2.54%

  • Rent/month: $3,498

  • Income Tax: 15.13%

  • Roundtrip Cost: 23.95%

  • Cap. Gains Tax: 0.00%

  • Landlord and Tenant Law: Pro-Landlord

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Singapore's housing market's success has correlated with strong economic growth spanning decades; it's thus regarded as a safe haven, a liquid market, where faith in it's institutions is trusted across Asia.  

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Rental Income: Net rental income earned by non-residents is taxed at 22%. Property Tax: Property tax is levied at a flat rate of 10% for rental properties. Foreigners pay a 10% surcharge. Capital Gains: There is no capital gains tax. Inheritance: There is no estate duty as of 15 February 2008. Residents: Residents are taxed on their income at progressive rates, ranging from 2% to 22%.

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