News and analytical reports of the week (03-09.05.2010)

The rating of markets most appealing to Russian property buyers has been compiled. Latvia: the president has signed a law which would grant residence permit to buyers of local property. Finland: rental prices are rising steadily.

The Rating: Prian.ru portal has prepared a regular monthly report on property markets most popular among Russian buyers. For the first time in the rating’s history, Czech Republic, which has been attracting an increasing number of buyers since June 2009, entered the TOP-5, pushing Finland out. Over the second consecutive month, every fifth Russian buyer is interested in purchasing Bulgarian property. This Balkan country has been leading the rating since August 2008. A significant leap up in April was demonstrated by Spain, which has gained more than 1% of the total requests number.

Latvia: Latvian President Valdis Zatlers has approved amendments to the Immigration Act; new regulations would allow property buyers and investors in Latvian economy to receive a residence permit for up to five years. A foreigner must purchase one or more properties for not less than 100,000 lat (€141,000) in Riga, or priced at least 50 thousand lat (€70,5 thousand) outside the Latvian capital. That said, not the estimated value of properties will be taken into account, as it has been previously assumed, but the actual value of the deal.

In April, the average cost of typical apartments has increased by 1%, compared to the preceding month. Since last September, when the two-year-long price decline has finally stopped and was replaced by growth, apartments in typical buildings have appreciated by 12.4%.

Finland: in Q1 the average cost of rental housing in the country has increased by 1.9%, compared to the corresponding period last year. Over 2009, Finnish rental prices have climbed up by 4%

Sweden: the country's authorities intend to introduce an amendment to current legislation. According to it, the maximum amount of mortgage loan will work out 85% of the property’s value.

Italy: prices for rural and holiday properties in the country remain stable due to high domestic demand. Currently, the average prices on the most prestigious resorts - both skiing (Madonna di Campiglio, Courmayeur) and marine (Capri, Forte dei Marmi) – exceed €10,000 per a sq. m.

Cyprus: three months of continuous increase in property sales on the island were replaced by the 14.8-percent-large decline in this indicator, April-to-March. According to experts, the suspension of “recovery” of the Cyprus property market is related to financial crisis in Greece, which fuelled the deterioration of economic situation on the island. In addition, the depreciation of euro against pound, which has been triggered by the Greek crisis, led to a decrease in the number of British property buyers on the island.

UK: In April, prices for premium housing in the British capital have increased by 1.3%. At the moment, they exceed the levels of March 2009, when the market has reached its lowest point, by 21%. 56% of all transactions concluded in April are accounted to foreign buyers. Despite the financial crisis in Greece, the demand for London’s luxury properties expressed by the Greeks has grown dramatically in recent years, and their share in the total number of customers has increased up to 6%.

Slovakia: in Q1, average price for residential property in the country have amounted to €1,296 per a sq. m. In the preceding quarter, the figure worked out €1,297 per a sq. m.

Indonesia: the country's authorities plan to allow the purchase of properties in private ownership for foreign citizens aged over 55 years. The maximum amount of credit issued to foreigners will work out 50% of the properties value. In addition, the credit should be settled within three years.

Finally
A horror movie dedicated to mortgage crisis will be shot in the United States. The project is called “Foreclosure”. The movie’s slogan reads: “Ghosts cannot be evicted”. Details of the plot are not disclosed. The only thing known is that its action will occur in an almost empty block against the background of the mortgage crisis, which has resulted in many homes being foreclosed by banks, because of their owners’ mortgage debts. The main role in the movie performed by Michael Imperioli, which is well-known for starring in “The Sopranos” and Peter Jackson's movie “The Lovely Bones” (2010).