The Residential Real Estate Transactions market in Southern Europe has experienced significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.
Customer preferences: One of the key customer preferences in the Residential Real Estate Transactions market in Southern Europe is the desire for a second home or vacation property. Southern Europe is known for its beautiful beaches, pleasant climate, and rich cultural heritage, making it an attractive destination for tourists and investors alike. Many buyers from Northern Europe and other parts of the world are looking to purchase a property in Southern Europe as a holiday retreat or investment opportunity.
Trends in the market: The market in Southern Europe has seen a surge in demand for residential properties, particularly in popular tourist destinations such as Spain, Italy, and Greece. This trend can be attributed to several factors. Firstly, low interest rates have made it more affordable for buyers to finance their purchases, leading to increased demand. Additionally, the rise of online platforms and real estate agencies has made it easier for buyers to search for and purchase properties remotely, eliminating the need for physical visits. Lastly, the COVID-19 pandemic has also played a role, as many individuals and families are seeking properties in less densely populated areas as a result of the shift towards remote work and the desire for more space.
Local special circumstances: Southern Europe has a unique set of local circumstances that contribute to the growth of the Residential Real Estate Transactions market. For example, countries like Greece and Italy offer attractive investment opportunities through their Golden Visa programs, which grant residency permits to non-EU citizens who invest a certain amount in real estate. This has attracted a significant number of foreign buyers, particularly from China and the Middle East, who are looking to obtain European residency or citizenship.
Underlying macroeconomic factors: Several underlying macroeconomic factors have also contributed to the growth of the Residential Real Estate Transactions market in Southern Europe. Firstly, economic stability and recovery in the region have increased consumer confidence and purchasing power. Additionally, favorable tax policies and incentives, such as reduced property taxes or exemptions for foreign buyers, have made Southern Europe an attractive destination for real estate investment. Lastly, the region's strong tourism industry has created a demand for rental properties, making it an appealing market for buy-to-let investors. In conclusion, the Residential Real Estate Transactions market in Southern Europe has experienced significant growth due to customer preferences for second homes, market trends such as low interest rates and online platforms, local special circumstances like Golden Visa programs, and underlying macroeconomic factors including economic stability and a strong tourism industry. This growth is expected to continue in the coming years, making Southern Europe an attractive market for both domestic and international buyers.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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