Booming Real Estate Markets - Budapest, Berlin, Denmark, Hong Kong, Dubai, London

The leading property markets in Europe are Berlin, Budapest, Hamburg, Munich, and Frankfurt. In the Middle East – Dubai offers a variety of meaningful options. Turkey’s Izmir and Reykjavik of Iceland are 2nd and 3rd fastest growing cities (as per Knight Frank data) and booming real estate markets.

In South Asia, Hong Kong offers the best-ever returns, as some of the biggest property deals were concluded in Hong Kong in recent months, and the sales reached US$51.4 billion in the first half of the year 2018 (as per the reports of Midland Realty). 

The total transaction value in the first half of 2018 was 14.5 per cent more than in 2017. Ricacorp Properties statistics show the rates reached a new high of HK$14.8 million in the city.

Growth In Residential Properties In Hungary

According to the latest data revealed by the Deloitte Property Index, the lowest growth in residential property was reported in London. At the same time, in Budapest, it was 7 per cent, and in Denmark, it was 8.9 per cent. 

Hungary’s Central Statistics Office reports state house prices have increased in the past five years and will increase by 15 to 20 per cent. The residential property returns were up to 7 per cent in Budapest and other Hungarian cities. There is a tremendous demand for central properties in Budapest, where the ex-pat population strives for affordable accommodation. 

The district of Pest in Budapest has several ex-pat professionals and some high-rated universities and educational institutions, which kept local demand expanding. Some famous districts are three, five, nine and thirteen, and district seven had maximum growth in the last six years, while district nine had refurbished properties. 

Booming Berlin 

The latest data on the Global Residential Cities Index released by Knight Frank shows the global growth has been at the rate of 4.5 per cent, except in Berlin, where the prices are still increasing. In Berlin, growth was up to 120 per cent since 2004. As a result, Berlin properties are flooded with overseas investors seeking residential and commercial opportunities.

Recently, the US investor Warren Buffet entered a deal with the leading real estate agent in the city to sell apartments and properties worth 3.3 million Euros. As a result, Berlin property prices increased by 20.5 per cent in 2017 (as per consultancy Knight Frank) and registered one of the highest growths in the last five years. 

The Knight Frank growth reports on properties worldwide show the gain in London was up to 2 per cent, and it stood at 101 ranks. Even when growth is flattening in the UK, investors from China and Hong Kong seek deals in prime locations in London. 

The value of the real estate has increased in the last six months in Dubai, where total transactions were $30.2 billion – of 27,642 property transactions. The market is influenced by expatriate job losses, interest rates, and a strong dollar.

About 50 per cent of property transactions in Emirates account for planned sales where the buyer commits to buy to let a property before it is built. 

For more information about European properties and the growth in rental properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).