News and analytical reports of the week (13–19.12.2010)

Prices

 

According to information recently published by one of the Spain’s leading consulting companies, RR de Acuña&Asociados, housing prices in the country will continue to decline throughout the next five years. Such dynamics will be caused by excessive supply on the market. The decline will roughly work out 20%. Note that, according to official statistics, housing prices in Spain, have plunged by almost 20% over the past three years.

 

Over November, apartment prices in Swedish cities of Stockholm and Malmo have hit their record-highs. Experts of the Fastighetsbyrån Agency claim that the current high prices for apartments are a consequence of balanced growth throughout the year, rather than a sudden appearance of a “bubble” on the market. They claim that there is no need in being afraid of a collapse in prices, since the opportunities for speculation on the state’s property market are restricted: according to local laws, the buyer is obliged to live in an apartment in the state, for him to be able to simultaneously own multiple properties. 

 

In Q3, the index of residential property prices in Austrian capital was 9.9% higher than in the corresponding period of 2009. This has become the sharpest annual increase in this indicator since 1992. In other regions of the country, prices have stalled. Such difference in price dynamics in the capital and beyond it boundaries is explained by the fact that nearly 70% of Vienna’s residential properties belong to institutional investors, banks and legal entities. In addition, rising prices in the city can be explained by deterioration of local economy which renders property investment in the capital a secure instrument for capital allocation. Another factor affecting prices in Vienna is a supply shortage caused by the decline in construction.

 

Canadian property market is on its way to stabilization. Experts of the Canadian Real Estate Association (CREA) have come to such a conclusion. Housing sales are on the rise. Over November, average home prices in Canada have climbed up by 2%, year-on-year, thus amounting to 344.3 thousand Canadian dollars.

 

 

Rating

 

The Prian.ru portal has published a rating of countries most popular among Russian overseas property buyers for November 2010. Despite a slight decline of interest in Bulgaria, its separation from the second-ranked Germany has increased slightly, already by more than three percentage points. Spain, which has become the only resort destination in the TOP-10 to see increased interest from Russian buyers, has closely approached to the ranking’s leaders. Countries that traditionally offer beachfront properties, such as Montenegro, Turkey, France, Thailand, Greece, Croatia, Dominican Republic, have descended in the rating. Interest in European countries, which often offer low-cost housing continues to increase: in particular, interest in the Czech Republic continues to grow for the third consecutive month. In addition, Estonian property market has outperformed even the most optimistic forecasts of the Prian.ru analysts: this Baltic country did not enter the TOP-10 in December, as it had been expected, but as soon as November.

 

 

Legislation

 

Effective January 1 2010, the cost of residence permits for foreign residents in Finland will rise from 225 euros to 350 euros. Relevant amendments have already been approved by the government. Such increase is due a new type of residential permit would be used in Finland next year – biometrical documentation. Such expenses result in increased prices. 

 

 

Mortgage

 

Less housing foreclosures registered in the US. In November 2010, the indicator ha declined to its lowest level within 2 years. According to analysts, the reason for a decline of this indicator lies in the fact that lenders across the country have been forced to reassess foreclosure procedures.

 

 

Project

 

Roomworks Architecture and Construction Company have drafted mini-offices that can be installed directly in one’s backyard. “Garden offices” are designed specifically to meet the customer’s wishes and needs. They can be of any size and shape, and are equipped with all necessary equipment and facilities, whether it's lighting, telephone, wireless internet or a bathroom. In order to reduce expenses the construction company uses insulating panels, and Western Red Cedar wood for finishing, these materials provide good heat and sound insulating properties and resistance to rot and wood parasites. Only two weeks are required to complete all design, construction and finishing works.

 

Developers offer to cover the roof with an insulating waterproof membrane, which would be then covered with land where 15 different varieties of slow-growing grass that requires no care and grooming would be planted. It is not only an interesting design decision, but also an eco-friendly way to reduce energy costs: insulating panels and green roof can retain heat better in winter, and cool in summer.

 

An office in UK may be purchased for £9 950 ($15 500) and up.

 

Alexey Lahov

Prian.ru