Residential Property Prices in The EU Countries Increased by 10% in 2021
Eurostat has published an index for housing prices — House Price Index — in the EU countries for the fourth quarter of 2021. On average, the cost of residential real estate in the region increased by 10% compared to the same period in 2020, and the cost of rent — by 1,3%.
We will tell you in which countries the rise in prices was higher and how the situation is in countries with investment programs.
When compiling the House Price Index, or HPI, Eurostat takes into account changes in prices for primary and secondary housing under sales contracts. This is the average figure for all EU countries.
Housing prices in the European Union rose until the end of the second quarter of 2011. Then the cost of housing fell against the backdrop of the European debt crisis. By 2015, the situation had stabilized: housing prices in the European Union began to rise.
Rental prices have been growing steadily since 2010: during this time, rent has risen in price by 16%. In the fourth quarter of 2021, growth was 1,3% compared to the same period in 2020.
The dynamics of prices for the purchase and rental of housing in the European Union from 2010 to 2021
More than 50% soared house prices in Estonia, Hungary, Luxembourg, Latvia, Czech Republic, Austria and Lithuania. Positive dynamics in the region does not reflect price fluctuations in individual countries. In Greece, Italy and Cyprus, there was a drop in price increases.
How housing prices have changed in countries with investment programs
The index presents data on four EU countries that offer a residence permit for the purchase of real estate. These are Greece, Cyprus, Malta and Portugal.
Dynamics of housing prices in the 4th quarter of 2021
Compared to Q4 of 2020
Compared to 2010
- 8,5 %
- 22,8 %*
* Eurostat used data from the Bank of Greece in assessing the annual price index for Greek housing
Property sales in Cyprus began to rise in 2021. The Department of Lands and Surveys of Cyprus has registered 10,347 real estate purchase and sale contracts. This is 30% more than in 2020.
Geoaxis Company has compared prices for the apartments in Greece: their value increased by 10% in the third quarter of 2021 compared to the same period in 2019.
The real estate market in Portugal has changed in 2021: housing prices rose by 13,8%, objects began to be bought more often in small towns. The reason is that from January 2022 in Portugal there are new conditions for the purchase of real estate under the residence permit program for investment.
Statistical agency of Malta has reported that the demand for housing has increased by 37,8% in November 2021. About 93% of all objects were bought by individuals — citizens of the country and foreigners.
How to get a residence permit in Cyprus, Greece, Portugal and Malta for the purchase of real estate
To obtain a residence permit or permanent residence for the purchase of real estate, you need to take part in the state investment program. Investors will need to pass due diligence, confirm the legality of income and compliance with the terms of the program.
Each country has its own requirements for the minimum value of real estate.
Permanent residence in Cyprus — investments from the amount of €300,000. An investor can buy one or two primary properties. He also pays VAT at a rate of 19%, but when buying a single home for his own residence, the rate is reduced to 5%.
Residence in Greece — investments from the amount of €250,000. To become a Greek resident, an investor has the right to buy any object on the primary or secondary market. If parents or grandchildren are included in the application, the minimum amount will increase to €500,000.
Residence in Portugal — investments from the amount of €280,000. This amount is provided for the purchase of an object older than 30 years in a sparsely populated arearnof the country. To buy a newer residential or commercial property in other areas, the investor needs to select a property with a value of at least €500,000.
Permanent residence in Malta — investments from the amount of €300,000. To obtain a permanent residence permit, an investor buys a property worth:
from €300,000 in the south of Malta or the island of Gozo;
from €350,000 in other regions of the country.
A rental option is available in the amount of €10,000 or €12,000 per year, depending on the region. The property will need to be rented for five years.
Investment property in Cyprus, Greece, Portugal and Malta
Immigrant Invest — a licensed agent who helps to obtain a residence permit in the European Union for investment. If you want to become a resident of Portugal, Greece, Cyprus, Malta or buy property in the European Union, feel free to contact our investment program experts for more information.