Investment Insights for 201620th January 2016
Lisbon – 10% on the year ahead
2015 saw Lisbon cemented as one of Europe’s most dynamic capitals – defined as the next San Francisco, thanks to its increasingly vibrant start-up culture, golden visa program but with the high-quality, low-cost living that defined Berlin as a creative hub 5 years ago.
With a reported 95% of Lisbon’s properties still primed for restoration and renovation, the property market still has a lot of room to grow and we predict a 10% price increase in well-located city centre apartments over the next year, in spite of the switch to anti austerity by the relatively new Portuguese government. There is an ever-increasing demand from European and International investors, bringing an exciting cosmopolitan feel to the Portuguese capital. Now is the time to invest.
Paris – A turning point for high-end property
In Paris, we have observed a 5% increase in high-end property sales in spite of the recent attacks. We believe that 2016 is a turning point in the market prices and the time to snap up a good deal before prices increase steadily, pushed by the European Central Bank quantitative easing program.
New-build properties remain in extremely high demand simply due to their scarcity. Around 650 new properties were built in central Paris last year, compared to more than 20,000 across London. Targeting new-builds in areas where luxury hotels are being created will continue to be a trend in 2016. Areas like the 16th arrondissement, and particularly Auteuil where new 5* hotels like the Molitor are being built will stay in high demand.
London equals liquidity and commercial property
The London market is facing some challenges with the new taxes on buy to let, a stronger pound and the stamp duty increase. Yet it remains a highly liquid market, with excellent yielding opportunities particularly in the commercial property. More and more seasoned residential property investors are dipping their toe into commercial real estate due to its relatively high yields and low management requirements.
Our destinations in focus: