European lifestyle continues to appeal to domestic and international investors
Real estate has gone trendy in more ways than one and after the unexpected and unparalleled year of 2020 and a still tentative 2021, the repercussions of the COVID-19 pandemic not only continue to be felt and uncertain, but have also helped shape some of the emerging trends in real estate in Europe. One thing is for sure: the relaxed, contemporary European lifestyle is as appealing as ever to both domestic and international investors.
1. Living, working, retiring or passing through Europe
If there is one extremely important issue that the COVID-19 pandemic has shined the spotlight on is mobility or the lack thereof – no one likes to see their freedom of movement limited. And how is this being reflected in the European real estate industry? Besides the ongoing appeal of the lifestyle and cost of living in Europe, people are fully understanding that they can essentially live, work, study or retire anywhere. And they’re going for it. The digital nomad way of life has no age or boundaries and those who want to make the most of their freedom of movement are seeking alternatives, plan Bs, safe havens, countries like Portugal, Greece or Luxembourg, who have handled the pandemic relatively well, as a change of pace, to settle down or invest in. Europe is definitely calling!
2. Millennials are turning to real estate investments
A big slice of investment in real estate in Europe belongs to millennials – young citizens, entrepreneurs or top executives with purchasing power, who are attracted to everything the European lifestyle is currently offering, from easy circulation throughout the continent to tax benefits and Portugal’s Golden Visa, for example. Millennials are not only buying their first homes or company space in up-and-coming tech areas, but they’re also looking for second homes or investment opportunities in the commercial or tourism sectors.
3. High demand, low inventory
When it comes to living in Europe, it’s clear that real estate buyers know exactly what kind of investment properties they want, in terms of location they also know exactly what areas and neighborhoods they’re looking for and they have the financial means to invest in real estate but… they’re not getting the expected return. The reason is low inventory in investment properties, a tendency that will continue.
4. Investing in second homes
Investment in real estate has gained a new meaning on the tails of the COVID-19 pandemic and real estate buyers in Europe are looking for investment properties that will serve as second homes, not only domestically, but also in neighboring countries. With remote work gaining credibility, and with both employers and employees easily and readily converting to it, people have come to the simple understanding that they can in fact work anywhere. Second homes have resurged in this sense, along with the goal of getting away from the big cities and closer to nature – beach, countryside, mountains.
5. Investing in larger homes
The more time we spend at home, the more space we tend to need – between remote work and remote school, limited socializing and impending lockdowns, property owners are looking at their homes with fresh eyes and understanding that space is the new luxury. Inside, so there can be a clearer separation between family life, work life and school life; and outside, where there’s room to relax, play and breathe. Going outside to the garden or terrace is the new going out.
6. The rise of virtual tours
With remote working and living still very much in motion and with so many travel restrictions still in place, this “new normal” is expected to continue well into 2021, with the real estate industry quickly responding and accommodating via video marketing and virtual tours, including real-time property visits for real-time question and answer sessions with potential investors. If those who are looking to buy real estate can’t come to the properties, the properties will find a way to come to them.
What else will 2021 have in store for the European real estate market?