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Business news from Ukraine

Analysis of residential real estate market in Latvia by Relocation

Results for January-May 2025

Decline in Euribor rates

A sharp drop in the Euribor interbank rate by 0.25 percentage points in June 2024 and subsequent easing reduced the cost of mortgage lending. This brought buyers back to the market, especially large families and investors.

Market activity

After the winter slump, an unexpected surge in transactions was observed in January: the number of available properties fell by more than a third, and some market segments experienced shortages. This signaled a recovery in demand.

Mortgage lending trends

New changes in legislation have eased refinancing conditions, with a number of fees abolished and commission thresholds reduced. This has encouraged homeowners who are willing to change their loan terms.

Rental market

Renting a home to avoid extreme risks is becoming a lifestyle choice—renting is no longer just a temporary measure, but a full-fledged alternative to buying. Cafes, coworking spaces, and city services have moved renting into a new category.

Growth in foreign investment

Latvians continue to invest in housing abroad, especially in Southern Europe, and foreign investors are attracted by the growing rental market – but government regulation has already restricted short-term rentals in some countries.

Dynamics in the regions

There is active construction of rental housing (ALTUM projects) in the regions. However, housing shortages in cities such as Ventspils, Cesis, and Jurmala remain a problem.

Prices and forecast for the end of 2025

According to estimates, average housing price growth rates in Latvia are expected to be in the range of 3-7% by the end of the year. For example, a 60 m² apartment in Riga for €150,000 could rise in price to €154,500-160,500.

Breakdown by property type:

Property type Growth forecast

Studio (30 m², €75,000) to €77,250-80,250

Apartment (75 m², €200,000) to €206,000-214,000

Penthouse (100 m², €500,000) up to €515,000-535,000

Where the highest price growth is expected

  • Old Riga – high attractiveness, demand from foreigners and creative sector employees.
  • Agnese, Miera, and Skulte – active renovation, growth of infrastructure projects, and development of workspaces.
  • Mezaparks and Pardaugava – green areas with investment potential, especially for families.
  • Regional cities (Jurmala, Bauska, Cesis, etc.) – demand is picking up, but there are still problems with quality and mortgage financing.
Risks and challenges
  • Mortgage availability: despite lower rates, banks remain cautious, especially in the regions. This limits the options for some buyers.
  • Rental oversupply: an excess of new properties could lead to lower returns.
  • Economic instability: global shocks, including trade wars, could slow infrastructure development and demand.
Conclusions
  • Price: Moderate growth (+3-7%) is expected across Latvia, especially in the capital and attractive areas.
  • Mortgages: Refinancing will drive demand, especially for large apartments.
  • Rental market: Renting is more than just an alternative to buying; it is a lifestyle choice.
  • Investor strategy: attractive investments in mixed-use and regional projects, taking into account renovation and infrastructure development.

Source: http://relocation.com.ua/rynok-zhytlovoi-nerukhomosti-v-latvii-ohliad-sichnia-travnia-2025-roku-ta-prohnoz-na-kinets-roku/

 

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Cash transactions dominate Serbian real estate market

In recent years, the real estate market in Serbia has shown a unique trend: the vast majority of transactions are made in cash. According to data from the

Republic Geodetic Administration (RGZ), in the fourth quarter of 2024, 89% of all real estate transactions were paid in cash, including 76% of apartment purchases. In Belgrade, this figure was 70.4%, and in Novi Sad, 71.8%.

Experts identify several factors contributing to the high level of cash payments in the real estate market:

Limited access to mortgage lending: High interest rates and strict bank requirements make mortgages less accessible to many citizens.

Savings and investments: Citizens with savings prefer to invest in real estate, considering it a reliable way to preserve capital.

Financial support from relatives: Buyers often receive funds from family members or from the sale of inherited property.

Some analysts are concerned that the high level of cash payments may indicate attempts to legalize income of dubious origin. However, according to experts such as Alexander Radivojevic, most real estate transactions in Serbia are legal, and it is incorrect to link them to money laundering without sufficient grounds.

Impact on the real estate market

The prevalence of cash payments has a significant impact on the real estate market:

Rising housing prices: High demand from cash buyers contributes to rising real estate prices.

Reduced housing affordability: For citizens who do not have significant savings, purchasing a home becomes less affordable.

Declining role of mortgage lending: Banks are facing a decline in demand for mortgage loans, which may affect their lending policies.

To ensure transparency and stability in the real estate market in Serbia, the following is recommended:

Improving access to mortgage lending: Developing programs with more favorable terms for borrowers.

Strengthening control over financial flows: Improving the effectiveness of monitoring large cash transactions.

Improving financial literacy among the population: Informing citizens about the advantages and risks of different methods of financing home purchases.

Source: https://t.me/relocationrs/1032

 

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Greek residential real estate market 2025: analysis and forecast for 2026 by Relocation

The Greek residential real estate market 2025 continues to show steady growth despite global economic challenges. Demand for housing remains high among both local residents and foreign investors, which contributes to higher prices and the development of new projects.

Current market situation

  • Price growth: According to The Luxury Playbook, the average cost of residential real estate in Greece in 2024 was $292,700, and it is expected to reach $364,500 by 2029. This indicates a steady increase in housing prices.
  • Foreign investment: The Golden Visa program continues to attract foreign investors. In 2024, more than 11,870 visas were issued, bringing in more than €2.9 billion in foreign direct investment in the real estate sector.
  • Tourism and leasing: Growth in tourism is driving demand for short-term rentals, especially in popular tourist destinations such as Athens, Thessaloniki, and the islands. However, the government is introducing restrictions on new short-term rental licenses in central Athens to balance the interests of locals and tourists.

Forecast for 2026

  • Stabilization of price growth: House price growth is expected to slow but remain positive. Annual growth is projected at 3.2% to 3.7% until 2029.
  • Infrastructure development: Large projects, such as Ellinikon on the Athens Riviera, continue to attract investment and contribute to infrastructure development, making the region more attractive to buyers.
  • Impact of interest rates: Rising interest rates may affect the availability of mortgage financing, especially for local buyers. This could lead to a decrease in demand for housing in some market segments.

Recommendations for investors

  • Consider investing in developing areas: Areas with developing infrastructure and high potential for price growth may offer attractive investment opportunities.
  • Consider changes in legislation: Keep up to date with new regulations and restrictions, especially those related to short-term rentals, to avoid unexpected obstacles.
  • Assess risks: Consider the opportunities for real estate investment. However, it is important to carefully analyze the market and consider all possible risks when making investment decisions.

Source: http://relocation.com.ua/rynok-zhytlovoi-nerukhomosti-hretsii-2025-roku-analiz-i-prohnoz-na-2026-rik-vid-relocation/

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Residential real estate market analysis in Bratislava by Relocation

We provide an analysis of the residential real estate market in Bratislava with a description of the main districts, current prices, trends and forecast for 2025-2026.

The main districts of Bratislava and real estate prices:

Old Town (Staré Mesto):

The central district with historical buildings and developed infrastructure.

In the third quarter of 2024, prices for secondary housing increased by 5.8%.

Nové Mesto:

Combines residential and commercial areas, popular with families and young professionals.

Housing prices in this area also increased by 6.5% in the third quarter of 2024.

Ružinov:

Known for its proximity to the center and developed infrastructure, including parks and schools.

Moderate price growth is expected due to environmentally friendly urban projects and the construction of new schools and parks.

Investropa

Petržalka:

The most densely populated neighborhood with numerous panel houses and developing infrastructure.

High price growth is expected due to limited housing stock and upcoming renovations of historic buildings.

Karlova Ves:

A green neighborhood that attracts families and students due to its proximity to universities.

Average price growth is forecast due to the development of hybrid workspaces and new multifunctional complexes.

Current prices and trends:

In the third quarter of 2024, the average price per square meter of secondary housing in Bratislava was €3,748, which is 9.97% higher than in the previous year.

The average rental price for a one-bedroom apartment in 2025 is about €900 per month.

At the end of 2024, there was a surge in real estate purchases, driven by the expected increase in VAT and lower mortgage rates.

Forecast for 2025-2026:

Real estate prices in Bratislava are expected to grow by 3-7% annually, depending on the area and type of property.

Supply and demand: Despite a temporary decline in demand in early 2025 after a surge in late 2024, the number of transactions is expected to stabilize and continue to grow until spring 2025.

Influence of economic factors: Inflation is expected to reach 5.1% in 2025, which may affect purchasing power and the availability of mortgages.

Overall, the residential real estate market in Bratislava is showing steady growth, driven by a combination of high demand, limited supply and economic factors.

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

 

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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/

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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/

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