When investing in real estate, you want the purchased object to grow in value and eventually bring profit to its owner. That is why for investors especially relevant are the ratings of cities and countries with the highest rates of growth in housing prices. For example, our portal DOM already has such a rating for 2021.
But it is also useful to know in which geographical locations there is minimal or negative price growth. This will be useful not only for investors, but also for those who are going to buy housing for themselves in the near future. Low price is one of the most attractive factors.
So, we have included in our selection of major cities around the world, where real estate is not very expensive (and somewhere - even cheaper). Interestingly, 2021 and 2022 are very different in their data. This is not surprising! The situation in the world has fundamentally changed in the real estate market. Somewhere demand has fallen sharply, and somewhere inflation "ate" positive price growth.
Pattaya, Thailand
Analysts in one voice say that in Thailand is about to begin to rise in real estate prices and that it is most profitable to invest your money now. But this has been going on for 2 years, and nothing has changed in the market. Interestingly, no one can provide accurate statistics yet, but the facts speak for themselves: so far prices are practically standing still.
And the tourist Pattaya is the most stable in this respect. If the capital of the country - Bangkok - shows at least some growth in real estate prices (from 2% to 4.5% according to different data), in Pattaya everything remains at the same level. At the same time, housing here is considered one of the cheapest in the world. The cost of a square meter on average is 1.6 thousand euros on the outskirts and 2.5 thousand euros in the city center. This is quite a favorable offer for those who want to buy an apartment for their own residence, not for investment.
Interestingly, under the laws of Thailand, a foreigner does not have the right to buy a plot of land, and therefore a villa. Therefore, condominiums are very popular - closed residential complexes - new buildings, where there is a common pool and a variety of services for residents.
Nicosia, Cyprus
Inexorable statistics say that over the past 10 years, real estate prices in Cyprus have generally fallen. However, this is only partially true. In the field of luxury new buildings, the situation is different. For example, Limassol and Paphos demonstrate an annual increase in demand for housing (including in the program of accelerated obtaining a permanent residence permit in Cyprus) and, accordingly, prices for it.
The capital Nicosia is more stable in this regard. Despite the impressive number of new buildings in various parts of the city, the price growth here is low and fluctuates within 2.5%. At the same time, the real estate itself remains quite attractive in its value, especially if you compare it with Limassol and Paphos. So, here you can still buy a beautiful apartment in a developed area for 130-150 thousand euros, and a private house in Strovolos or Aglantzia can be found within 200 thousand euros.
Foreign buyers do not often pay attention to Nicosia. This is due to the fact that the city does not have access to the sea, and the climate here is more harsh and dry. Nevertheless, living in the capital city has many advantages, and that is why foreign investors have started to take a closer look at Nicosia. There is a possibility that Nicosia will rise in popularity in the coming years.
Frankfurt, Germany
Germany as a whole is going through the best of times. The global environment in 2022 has severely shaken the economies of many countries. Germany was no exception. The small (relative to many other countries) growth in real estate prices has slowed down a lot, and in some cities there are negative indicators.
In Frankfurt, for example, housing prices fell the most: by more than 5%. If we take into account that for 2021 growth was 5.3%, we can say that the cost per square meter has returned to pre-pandemic indicators (that is, 2020 and 2022 are approximately the same). It is now approximately 6.2 thousand euros.
Cheapest of all will cost the purchase of housing in the north-western district of Frankfurt: there prices do not reach and 5 thousand euros per square meter. In some locations you can find apartments with a cost of less than 3 thousand euros per square meter.
Dublin, Ireland
The capital of Ireland in 2022 showed a fairly stable growth - almost the same as last year. From a global point of view, 4% is not so much, but for the country the figure is impressive. However, all records were broken by properties in rural areas (up to 12% depending on the region) and in Waterfall (almost 10%).
Interestingly, Dublin remains one of the most "profitable" cities in the world. The benefits are felt not so much in investments, but in renting out housing. The annual rate is kept at an average of 8%, which is quite decent. For example, in Cyprus, not every real estate is not able to bring such money.
Also Dublin will suit those who are looking for stability. Increase the funds, maybe not much and will not be able to - but to keep them will definitely get. Sometimes this is a serious plus for certain categories of buyers. The average price for an apartment in the city exceeds 400 thousand euros.
Auckland, New Zealand
The second largest city in New Zealand continues to show quite high prices without their significant increase. So, despite the good demand, price growth amounted to about 0.5% for the year. Interestingly, against this background, there are still fewer offers than buyers' requests.
The average price of a square meter in Auckland is 3.5 thousand New Zealand dollars, which is equal to about 2 thousand euros. But in the central and elite areas, the cost can reach up to 6 thousand dollars, which is equal to 3.5 thousand euros.
It is nice that to buy real estate in New Zealand can any foreigner. The main requirement - to competently draw up a contract and provide all the necessary documents. The purchase is complicated only by the remoteness of the country from the mainland: the best solution would be to come here and on the spot to determine the purchase. The services of realtors here are very expensive.
Barcelona, Spain
Inflation hit Spain very hard in 2022. Therefore, real estate, even if it showed an increase in its prices, in fact, still cheaper. Thus, in Barcelona and some other major cities in the country, the price level remained at the same level as in 2021. Although immediately after the pandemic, the forecasts were quite optimistic. Cities close to the sea were expected to show strong and tangible growth due to increased demand.
However, world events have led to what it is now. Yes, for locals, the price of Barcelona real estate has increased by about 3-5% (in new buildings - by 6.9%). But for foreign buyers it has remained the same due to inflation (about 10%). And if we take into account the sharp change in the ratio of the ruble to the euro, then for Russians today to buy real estate in Spain is very profitable, although it is difficult, given the current situation.
For reference, the average price for 1 m2 in elite areas of Barcelona is 9 thousand euros, in ordinary - 6 thousand euros. In remote locations you can find housing within 3-4 thousand euros per 1 m2.
Naples, Italy
In Italy, the situation is similar to Spain: inflation is "knocking down" the growth of prices (about 3.5% in general and 6.6% for new buildings) for real estate. But at the same time, the growth itself has slowed significantly, and in some southern regions, it is even tending to negative indicators. At the same time, demand still exceeds supply, so that the collapse of the real estate market in Italy is not expected. It remains a reliable country to invest in order to save money.
Interestingly, Naples, which is located in the south, is no longer in such demand among locals and foreign buyers. There is also an increase in demand towards smaller homes and apartments. This is due to the rising cost of energy and therefore utilities. Simply put, it is cheaper to heat a small dwelling than a large one.
For reference, the price of a square meter in Naples at the beginning of 2023 is 3.3 thousand euros. But with a great desire in the suburbs can find housing cheaper than 1 thousand euros per 1 m2.
Ljubljana, Slovenia
The capital of a small country is characterized by a calm and generally low rate of price growth. In the period from 2021 to 2022 real estate "grew" by about 4.5%, and it is expected that in 2023 this figure will be even less.
Therefore, the purchase of real estate in Slovenia is rather beneficial for those who are going to live in it permanently. Interestingly, new buildings are distinguished by higher prices: so, a square meter costs about 3.5 thousand euros. Secondary housing will still be cheaper.
It should be noted that citizens of third countries can not just buy real estate in Slovenia. To do this, they need to be registered as a valid legal entity. Also, the country does not provide programs that would allow you to get a residence permit or residence permit on the basis of the purchase of real estate.
Hong Kong, China
Hong Kong is a state within a state. Its economic performance is often very different from mainland China. For example, Hong Kong in 2022 and after the pandemic peaked in the prevalence of supply over demand: it seems that housing prices have started to fall, and this process will continue for some time.
For example, Hong Kong real estate showed a negative growth of about 2.5% in the first quarter of 2022 alone! This is quite noticeable, especially for those who were counting on an increase in the value of the home they had already bought. And those who were just going to buy it, now do not hurry to formalize the deal: they are waiting for more price reductions.
At the same time, Hong Kong ranks first in the cost of real estate in the world. Thus, the price per square meter exceeds 28 thousand U.S. dollars. Total apartment there can be bought for at least 1 million dollars on average.
Helsinki, Finland
Despite the fact that Finland is considered a prosperous country, the crisis of 2022 has touched it. Rising mortgage rates, energy prices, mismatch between supply and demand - all this contributed to the fact that the rate of growth slowed down, and in some places even fell.
Thus, the overall average cost of housing in Helsinki fell by 3%, although in the first half of the year there was a slight increase. It is interesting that the secondary real estate at the same time more gained in price, but the primary - lost.
At the beginning of 2023 the cost per square meter in Helsinki is about 6.6 thousand euros. In other regions of Finland you can find apartments and houses significantly cheaper.
Detailed information about all projects in Nicosia can be obtained from the specialists of DOM, the number 1 real estate agency in Cyprus by phone +357 22 030670, or in person at Archiepiskopou Makariou III 1, Lakatamia 2324, Nicosia, Cyprus.
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