Recommendation points
Comparing and analyzing real estate markets of different countries of the world, experts first of all pay attention to apartments, houses and commercial real estate objects in the capitals. In addition, investors wishing to invest in the purchase of housing in other states also mainly opt for large cities..
The only exceptions are resort regions, where houses attract buyers to a greater extent than apartments in a metropolis. Otherwise, it is the capitals that often turn out to be an indicator of the maximum value of real estate in their country, they are the center of the financial and economic activity of the state, therefore, from this point of view, the analysis of the real estate market of European capitals seems to be the most interesting and indicative.
Of course, it is simply impossible to cover in one article all the capitals of Europe without exception, so we will focus on such interesting cities as Paris, Copenhagen, Prague, Warsaw, Vienna and Amsterdam..
Vein
In 2011, it was Vienna for the fourth time in a row that was recognized by Mercer as the most favorable city for life in the world. The Austrian capital is famous for its history, well-developed public transport system, including high-speed trains and subways, numerous cultural events, a high standard of living, well-groomed streets, attractive architecture, as well as a mild climate, thanks to which Vienna has become one of the few European capitals on the territory of which grapes are grown.
The capital of Austria also attracts buyers for its location: on the banks of the Danube, surrounded by the Vienna Woods, at the foot of the Alps.
Thanks to such an impeccable reputation of the city in the past few years, residential real estate in Vienna has been in stable demand, only compared to 2010, the average cost of housing in the Austrian capital increased by 10-15%.
Of course, apartment prices in Vienna vary depending on the area – administratively, the Austrian capital is divided into 23 districts, 9 of which are considered central. So, the average price of 1 square meter in the 1st district of Vienna – Inner Stadt – is currently approaching 9 thousand euros.
The most attractive districts of the center of Vienna are the neighborhoods of the Kohlmarkt market, as well as houses on Kertnerstrasse, the cost of 1 square meter in these areas can reach 17 thousand euros. Other prestigious, popular among buyers of real estate and therefore rather expensive areas of the capital of Austria include the 9th district – Alsergrund, 13th – Hitzing and 19th – Debling.
However, Vienna is still very far from London and New York in terms of housing prices, in the districts of the city farther from the historic center, the average cost of housing is set at 3-6 thousand euros per square meter.
There are no restrictions on the purchase of real estate in the capital of Austria by foreigners; a citizen of any country in the world can become the owner of an apartment in Vienna by opening a special bank account and thus proving his reliability. The Viennese know about frauds in the real estate market only by hearsay, however, in order to understand all the legal intricacies, it is worth using the services of an Austrian notary or a specialized company.
Paris
No other city in the world has received such a multitude of enthusiastic statements from famous personalities, which later became catch phrases. That there is only the famous “Paris is worth the Mass” of King Henry the Fourth, who changed his faith for the sake of the opportunity to rule this city and country. The phrase “See Paris and Die” by Ilya Ehrenburg was a demonstration of how much a trip to the capital of France can change a person’s worldview. But there is also “Paris – a solemn holiday that is always with you”, Ernest Hemingway and “Paris is everything you want!”, Escaped from Frederic Chopin after his first visit to this unique city.
The capital of world fashion, the city of theaters, museums, royal palaces, the cultural capital of the world, the center of the economic and financial life of France, and finally, just an unusually beautiful city – all this, no doubt, can be said about Paris.
It is not surprising that real estate in Paris becomes the object of dreams of many foreign citizens who come here not only for excursions, but also for the type of activity, in order to get an education at the University of the Sorbonne or profitably invest their accumulated savings..
Paris is the second largest city in Europe after London; in terms of the cost of residential square meters, this city is also located immediately after the capital of Great Britain.
Real estate in Paris is considered one of the most expensive in the world – on average, the cost of 1 square meter in the city was set at 5-7 thousand euros. However, housing prices are very different depending on the area of the city and it is rather difficult to talk about the average cost of residential properties. In addition, the real estate market in Paris is very diverse and it is difficult to find similar offers..
The capital of France is divided into 20 municipalities, each of which is in turn divided into 4 quarters. The most prestigious and expensive is the 6th arrondissement of Paris, where the Luxembourg Gardens and the palace are located, the cost of 1 square meter in this area reaches 15-17 thousand euros, so an apartment of about 130 square meters will cost the buyer at least 2 million euros.
Another expensive Parisian district is the 8th, the Champs Elysees district, the average price of 1 square meter here reaches 10-18 thousand euros and more, depending on the level and quality of the apartments. The minimum cost of a “square” in the 8th Parisian arrondissement, which also houses the Grand Palace and the Elysee Palace, is 8 thousand euros, and the maximum can reach 20 and 25 thousand euros per square meter.
Slightly lower housing prices in the 7th arrondissement, where the Eiffel Tower and the Champ de Mars are located, the minimum cost of 1 square meter in this area of Paris is 5-7 thousand euros. Thus, the price of a studio apartment with an area of about 30 square meters can reach 130 thousand euros, while the quality of the repair carried out can be far from ideal..
Cheaper housing in Paris can be found in remote districts, for example, in 19 and 20, where multi-storey buildings with typical small-area apartments are located. The cost of 1 square meter in such “sleeping” areas of the French capital is on average 2-3 thousand euros.
Despite such high apartment prices, real estate in Paris is still in high demand, and supply, especially in the prestigious areas of the historic center, is very limited. There are no restrictions on the purchase of real estate in France by foreigners, all transactions are made through a notary, who also controls the payment of the amount of the initial payment and the final settlement of the transaction.
Prague
The most beautiful city in Eastern Europe is considered to be the capital of the Czech Republic – Prague. Small in size, but unusually beautiful city, which in general managed to preserve its historical appearance and unique charm.
Spreading on the banks of the Vltava River, the city is famous not only for its history, but also for its developed public transport system, impeccable roads and lack of traffic jams, and real estate in Prague attracts investors from different countries of the world, Prague apartments are also in demand among Russian buyers..
Currently, the cost of apartments in Prague remains the highest in the Czech Republic, however, in Europe as a whole, the price of housing in this city belongs to the average price category and cannot be compared either with Moscow prices, nor with the cost of housing in Paris, London, or even too much dear Vienna. In the Czech Republic itself, only real estate in spa towns such as Karlovy Vary can compete in terms of cost and popularity of apartments with Prague ones..
Prague is divided into several districts, where the cost of housing varies greatly. Thus, Prague-1 is the historical and tourist center of the city with the most expensive apartments; the Prague-2 area with luxurious buildings and developed infrastructure is also considered prestigious. The cost of 1 square meter in these areas today is approaching 4 thousand euros. In the districts of Prague more remote from the center, such as Western and Eastern Prague, the average cost of 1 square meter is 1.8-2 thousand euros.
In some Prague districts, special offers can also be distinguished with a higher price. So, among foreigners, houses and apartments in Prague-4 are in demand, since it is here that many international schools are located. Prague-6 has a large number of foreign embassies, whose employees prefer to buy apartments and private mansions near their place of work. Private villas erected in the early 20th century in the Prague 10 area became another expensive type of Prague real estate. However, despite the presence of individual offers with a high price, the value of real estate in Prague rarely exceeds 4 thousand euros.
Any foreign citizen can become the owner of real estate in Prague without any restrictions, experts advise to personally go to the capital of the Czech Republic in order to evaluate all the advantages of future property on the spot, contact a notary and register the right of ownership of a residential area in the State Real Estate Cadastre.
Warsaw
Located on the Vistula River, Warsaw is the largest city and capital of Poland, attracting tourists from all over the world with its architectural monuments, many of which were carefully restored after World War II, sights and picturesque streets.
It is not yet necessary to talk about the great popularity of Warsaw real estate among foreign investors, Russians are in no hurry to buy apartments in Warsaw, despite the geographical proximity of this country and the opportunities that open up for business due to the fact that Poland is a member of the European Union and is part of the Schengen zone. as well as a fairly low cost of housing.
So, today the average price of 1 square meter in Warsaw is 2.1 thousand euros, in new buildings located in more prestigious areas, the cost of 1 square meter can reach 3.5 thousand euros, but it is worth remembering that new apartments in Poland are rented already in finished form, with fully completed finishing works.
Warsaw is divided into 18 districts, the cost of real estate in which can vary greatly, however, prices depend not only on the location of the object, but also on the type of housing. The most prestigious and expensive are apartments and private residences in such districts as Prague Pulnots and Prague Poludne, Sredmiescie and Zoliborz.
In the dormitory districts of Warsaw, there are many buildings that were built during the reign of the socialist regime – typical multi-storey buildings, apartments in which do not differ in a convenient layout, currently for the most part require major repairs and reconstruction. However, the authorities did everything possible to prepare Warsaw for the European Football Championship, the matches of which were held in the city this summer. In particular, the construction of many residential properties in the central regions was resumed and the reconstruction of the existing housing stock began..
The current Polish legislation seriously complicates the process of acquiring real estate in Warsaw by foreigners, according to which everyone who wants to become the owner of an apartment or house must obtain official permission from the country’s government. Waiting for the issuance of such a permit may take several months and requires a citizen of a foreign state to provide a huge number of documents. Under an easier scheme, only foreigners who are married to Polish citizens or have lived in the country for more than 5 years can become the owner of real estate in Warsaw. It is these bureaucratic delays that have led to the fact that, despite the cheapness, apartments in Warsaw are not in demand among foreign investors..
Copenhagen
“Merchant Harbor” (this is how the name of the capital of Denmark is translated) is one of the ten most habitable cities in the world. Copenhagen, located on the islands of Zealand, Amager and Slotsholmen, is known throughout the world for its history, unusual architecture and truly medieval atmosphere..
Due to the high standard of living and the stability of the Danish economy, the purchase of an apartment or house in the capital of the country, according to experts, is a profitable investment, and real estate prices are growing slowly but steadily.
Real estate prices in Copenhagen are still low, especially when compared to housing prices in Paris or London, but they are showing an upward trend. Currently, the price of 1 square meter of housing in Copenhagen averages 1–2 thousand euros, which is an unattainable dream for Muscovites and residents of other European capitals.
Of course, the cost of apartments and mansions varies depending on the geographic location – the areas located in the northern part of Copenhagen (called the Danish Riviera) are considered very prestigious and the average cost of a private villa here reaches 300-400 thousand euros.
But in the central districts of the Danish capital, an ordinary apartment in an old building (often of the 18th century) can be purchased for only 2 thousand euros per square meter, while this quality of housing will be ideal, almost all houses have their own cozy patio, penthouses are in special demand with small roof gardens.
Richer buyers can find in Copenhagen such prestigious housing as an old mansion in the city center with an area of as much as 3,300 square meters. The purchase price is 11 million euros.
Every foreigner wishing to become the owner of an apartment in Copenhagen must obtain permission to carry out the transaction from the country’s Ministry of Justice. However, unlike Poland, such permits are issued in just 2 weeks and are not associated with the collection of a mass of documents, therefore they do not create any particular difficulties for investors..
Amsterdam
A city that is often called a “fairy tale for adults” for the spirit of freedom and ease prevailing here, the capital of the Netherlands, located in the province of North Holland, connected by a canal to the North Sea, Amsterdam attracts not only tourists but also property buyers.
On average, the cost of apartments in Amsterdam is 20-25% higher than the national average, but the demand for housing in this Venice of the North significantly exceeds the supply, and experts call the housing shortage the most significant in Europe. Since its foundation, this city has faced the problem of housing, since the proximity to the sea makes it necessary to build houses on stilts, and the lack of land made townhouses the most common type of private houses. Foreigners are also surprised by the narrow entrances and stairs in multi-storey buildings – this is how the Dutch save space..
Most of the high-rise buildings are concentrated not in the most prestigious area of Belmer, where many immigrants from developing countries live – this is the cheapest housing in the city, the cost of 1 square meter in a small apartment here reaches 4 thousand euros.
The average price of 1 square meter in the central districts of Amsterdam today ranges from 5 to 10 thousand euros, depending on the area of housing and location.
The main exotic of Amsterdam is the so-called “houseboats” – “vonboats”. These are ordinary yachts moored along the shores of the numerous Amsterdam canals, former cargo barges converted into housing and even small liners. Such “houseboats” have an official mailing address – the number of the house opposite which they are moored.
The cost of such apartments on the water is usually lower than that of “land” housing, since they are mainly used for living in the warm season, and the operation of “vonbots” is associated with significant costs for dry closets and heating. Environmental police carefully monitor that the inhabitants of the “houseboats” do not pollute the canals and can issue a very large fine in case of violations.
There are no restrictions for foreigners to buy real estate in the Netherlands, most often such transactions are concluded through the mediation of a local notary, whose services will cost 8-10% of the value of the property.
The real estate market of each European capital has its own differences, advantages and disadvantages, so when choosing a city, an apartment in which can be the best investment or object of dreams, it is worth comparing several proposals and making a decision, guided not only by personal preferences, but also by accurate calculation..
What are some key features and current real estate offers in European capitals? I’m curious to know more about the diverse options and opportunities available in some of the most sought-after locations on the continent.