Business news from Ukraine

Business news from Ukraine

Overview of office real estate in Riga by Relocation

In 2024, the office real estate market in Riga demonstrates stability, supported by economic growth and increased business activity. Despite the moderate pace of construction of new business centers, the demand for modern office space remains high, especially in the city’s central districts and business zones.

Rental prices in different districts of Riga

  • Thecenter of Riga ( Old Town, Kr. Barona Street, Brivibas Street):
  • The most prestigious business centers and historic buildings converted for office use are located here. The average rental price varies from €12 to €20 per m² per month, and in the top premium locations – up to €25 per m².
  • Skanste (modern business district):
  • A rapidly developing business area with modern office buildings and convenient infrastructure. Average rental rates are €10-18 per m², and in new Class A properties they can reach €22 per m².
  • Purvciems, Teiki, Imanta (residential areas):
  • These districts offer more affordable options for small and medium-sized businesses. Office rental prices here range from €7-12 per m², making them attractive for startups and small companies.

Trends and forecast until the end of 2025

  • Growing demand for flexible office space
  • Coworking and short-term office space continues to gain popularity, especially among IT companies and freelancers.
  • Limited new construction
  • The pace of commissioning of new business centers remains restrained, which supports the level of prices, especially in the central areas.
  • Stability of rental rates
  • Office rents in Riga are expected to remain stable until the end of 2025, with possible minor adjustments depending on the economic situation and demand in key business zones.

Thus, the office real estate market in Riga continues to develop, remaining attractive to occupiers, especially in modern business centers and flexible office spaces.

Source: http://relocation.com.ua/ohliad-ofisnoi-nerukhomosti-ryhy-vid-relocation/

, , ,

Analysis of the German residential real estate market in 2024

In 2024, the German residential real estate market faced a number of challenges, including falling prices, slowing construction and rising borrowing costs. Here are the key trends and forecasts for 2025, focusing on the country’s largest cities.

Decline in housing prices

In the first half of 2024, the average asking prices for new and existing apartments decreased by about 3.6% compared to the same period in 2023. This decline is less pronounced than in previous periods, when the drop reached 7.3% and 7.4%, respectively. The largest annual decline was recorded in Frankfurt am Main – by 6.5%, while in Hamburg the decline was only 0.6%.

The situation in major cities

Munich: The most expensive city in Germany with an average price of about 11,000 euros per square meter. In 2024, there was a 5.2% decline in prices for new buildings.

Berlin: The average housing price was around 7,920 euros per square meter.

Hamburg: A 5% decline in new construction prices, which is one of the smallest declines among major cities.

Frankfurt am Main: The largest year-on-year price decline of 6.5%.

Düsseldorf and Leipzig: On the contrary, these cities recorded an increase in prices for new buildings by 4.1% and 8.7%, respectively.

Housing shortage and construction activity

According to a study by the Federal Institute for Building, Urban and Spatial Research (BBSR), Germany needs to build 320,000 new apartments every year until 2030 to meet growing demand, boosted by the influx of immigrants from Ukraine and Syria. However, in 2024, only 216,000 apartments were authorized, the lowest number since 2010 and reflecting the real estate crisis.

Financial performance and investments

Germany’s largest real estate group, Vonovia, reported its third consecutive annual loss in 2024, amounting to EUR 962.3 million, due to significant write-downs in property values. Nevertheless, CEO Rolf Buch predicts a return to profitability in 2025, provided that real estate prices stabilize.

Forecast for 2025

German house prices are expected to grow by 3.5% in 2025, although there is a significant risk of weaker growth. The market continues to face difficulties due to high borrowing and construction costs. Rental growth is expected to exceed house price growth, making it difficult for potential buyers to save a down payment.

In general, the German residential real estate market in 2024 was characterized by declining prices and slowing construction activity. Forecasts for 2025 suggest a moderate increase in prices, but the market remains sensitive to economic and political factors.

Source: http://relocation.com.ua/analysis-of-residential-real-estate-market-in-germany/

, , , ,

Egypt seeks to raise up to $15 bln annually through real estate sales to foreigners

Egypt aims to raise between $10 and $15 billion annually through the sale of real estate to foreigners, targeting foreign investors to boost economic growth and transform the real estate market.

According to Dr. Abdel Monim El Sayed, Director of the Cairo Center for Economic Research, real estate exports can generate significant revenues if organized effectively. He emphasized the need to introduce clear policies aimed at simplifying the procedures for acquiring property for foreign investors. El-Sayed noted that despite the potential of the Egyptian real estate market, there are obstacles, such as the lack of reliable data on exported properties and the absence of a single regulatory body that would meet global standards.

As an example of the successful implementation of such initiatives, in 2024 Dubai recorded real estate sales worth over $18 billion, and total real estate exports to the UAE exceeded $45 billion. These figures demonstrate that with the right structures in place, Egypt can achieve similar economic success.

However, there are challenges, especially related to the condition of real estate. El-Sayed noted that many properties are not fully completed, which can deter foreign buyers who prefer move-in ready options. He also emphasized problems with non-transparent contracts and administrative difficulties in registering and transferring property, which creates additional barriers for potential investors.

In response to these problems, the need to establish a central regulatory body to oversee the real estate sector is emphasized. El Sayed emphasized the importance of establishing binding rules for contracts, quality standards for finishes, and financial criteria for developers. Such a body would ensure the safety of buyers’ funds and reduce risks for foreign investors.

The government’s proposal includes conditions such as a minimum property value of $300,000 for foreign buyers and foreign currency payment requirements, which should facilitate transactions. The main goal of this initiative is to support the inflow of foreign currency to Egypt and effectively balance supply and demand in the real estate market.

The simplification of processes and targeted incentives are expected to increase the attractiveness of Egyptian real estate for foreign investors. The government aims to position Egypt as an attractive choice for international buyers, accompanying these measures with a large-scale promotional campaign aimed at attracting foreign real estate buyers, which is in line with global trends in investing in emerging markets.

, ,

Latvian residential real estate market: results of 2024 and prospects for 2025

In 2024 , the Latvian residential real estate market showed moderate growth and stability despite global economic challenges.

In Riga, apartment prices increased by 5-7% year-on-year, while in other major cities, such as Daugavpils and Liepaja, the growth was around 3-4%.

Most transactions with new apartments in the capital were concluded in the price range of EUR 100,000 to 150,000, indicating a steady demand for mid-market housing.

Buyer preferences

In 2024, there was an increased interest in suburban real estate due to the changing preferences of buyers seeking more spacious and environmentally friendly housing.

However, the segment of new buildings saw a one-third decline in sales, while sales in the secondary market and in prefabricated buildings increased.

Impact of mortgage rates

The rise in mortgage interest rates due to the increase in the Euribor rate led to a decline in real estate activity. Many buyers have taken a wait-and-see attitude, waiting for lending conditions to stabilize.

Forecast for 2025

Experts expect the real estate market to revive in 2025. Lower interest rates and stabilization of the economic situation may stimulate demand for housing. The market is expected to become more dynamic, and buyers will be willing to invest in green architecture and energy-efficient housing.

However, the issue of prices will remain relevant, and buyers will have to choose between more spacious housing outside the city or smaller apartments in the center. All in all, 2025 promises to be a favorable year for the Latvian real estate market, with the possibility of increased activity and price stabilization.

Source: http://relocation.com.ua/analiz-rynku-zhytlovoi-nerukhomosti-la/

 

, , ,

Spain considers introducing 100% tax on real estate purchases for non-EU residents

Spanish authorities are planning to introduce a 100% tax on real estate purchases for non-EU residents. This measure is part of a plan presented by Prime Minister Pedro Sanchez aimed at overcoming the housing crisis and ensuring the availability of housing for local residents, the Financial Times reports.

The head of government said that EU non-residents annually buy 27 thousand residential properties in Spain, mainly “for the purpose of speculation”.

Spain is one of the European countries where public discontent is growing due to difficulties in finding affordable housing for purchase or rent amid a sharp rise in real estate prices and a significant lag between new construction and demand.

Over the past 10 years, housing prices in Europe have jumped by 48%, which is about twice the growth in household income over the same period, Sanchez said.

Spanish real estate is in high demand among people who buy vacation homes or want to move to a country with a warmer climate.

Such purchases are already subject to a number of taxes, the amount of which depends on the region and whether the transaction is on the primary or secondary market. In total, these taxes range from 7% to 12%.

Other measures proposed by the government include the transfer of more than 3,300 houses and approximately 200 hectares of land to a new state-owned company for the construction of social housing, stricter regulation of seasonal rentals, the restoration of empty buildings, and the provision of incentives to homeowners who rent out their homes at affordable prices.

Source: http://relocation.com.ua/ispaniia-mozhe-vvesty-100-podatok-dlia-nerezydentiv-ies-pry-kupivli-nerukhomosti/

 

, , , ,

Unique investment offer for commercial real estate on Landscape Alley

A new unique opportunity for investors in one of the most famous and picturesque places in the capital – Landscape Alley. This place, which has a great historical and cultural value, is known not only for its landscapes, but also for the constant flow of tourists and locals. The only available commercial space is located here, which creates an exceptional opportunity to open and develop a successful business in the heart of Kyiv.

Characteristics of the property

The offer includes three combined apartments on the ground floor of the historic building, as well as additional space on the sixth floor. The total area of the premises allows to accommodate various types of commercial enterprises, such as a restaurant, boutique hotel or other projects focused on the tourist and local market. All premises have recently undergone major repairs with modernization of engineering systems and interior renovation, which allows the new owner to start their business promptly.

Advantages of the investment project

Landscape Alley is a park popular among tourists and locals, known for its historical significance and picturesque views. The daily flow of visitors creates favorable conditions for any commercial project.

The 185-square-meter premises, with the possibility of expanding to 225 square meters, have just undergone a major renovation with the replacement of all communications. The space is ready to be used for a variety of businesses – from a family restaurant to a boutique hotel or sports complex.

Due to its central location and constant flow of tourists, the property has high profitability and a wide range of business opportunities.

The transfer of the premises to non-residential use will be fully supported by the legal team, including the development of a design project and the execution of all necessary works. The price of the property includes the entire range of works, except for the final finishing works. This allows investors to start their business as soon as possible.

This unique commercial offer provides investors with transparent transaction terms and the most comfortable conditions for starting a business in a prestigious area of Kyiv.

Contact information for inquiries: Phone: (050) 340 66 44

Address: 16 Velyka Zhytomyrska St., Kyiv, Ukraine

Watch more in the video at the link: https://www.youtube.com/watch?v=PnI7rJzq5Og

 

, , ,