Named the best cities for students. Sales and housing prices in Prague continue to grow. The average yield of real estate in Sofia reaches 5.4% per annum. We present a selection of the most important news of the week with comments from market professionals.
News number 3. Named the best cities for students
In the top three were the European and Asian capital, as well as one of the largest cities in Australia.
The ranking of the best cities for students for 2016 called Best Student cities 2016 was prepared by QS. Analysts looked at 75 cities in the world in several categories: ranking of local universities, attractiveness and safety, post-training employment opportunities and accessibility.
Paris occupies the first line of this rating for the fourth year in a row . The reasons for this phenomenon are the high concentration of international universities in the country, which number 18, as well as the relatively low cost of education.
Oleg Stvolinsky from Real Estate Worldwidespoke about how much a student will have to spend in Paris on rental housing: “Going to study in the capital of France, you need to understand that this is one of the most expensive cities in Europe for living.
It is important to note that not all Parisian universities provide students with a place to stay. For example, even the Sorbonne, the most famous university in France, does not have any hostels or campus.
Therefore, knowledge seekers often have to solve the issue of accommodation on their own. Renting an entire apartment in the center of Paris, close to the largest universities, is expensive. For example, inside Peripherique Boulevard, it is unlikely that a studio of 24-30 square meters will be found. cheaper € 1,500 per month. Outside the Paris Peripherique, but within the city, prices drop to € 1,100-1,200 per month. And you have to spend a lot of time and money on public transport, which is not cheap in Paris.
Or, if you want to save money, you can rent a room in an apartment. In the center of Paris, it will cost € 900-1000 per month, outside Peripherique – € 600-800 per month. ”
News number 2. Sales and prices for housing in Prague continue to grow
Since 2012, the average cost of housing in most parts of the Czech capital has increased by 3-4% per year.
Residential real estate sales in Prague have increased significantly over the past few years .. This was due to the strengthening of the Czech economy and low mortgage rates. Attractive buying conditions are constantly pushing demand for housing.
Exchange rate fluctuations have a big impact. The Czech Republic, despite being part of the EU, still has its own currency, the krone. At the moment, it is noticeably weaker than other significant world currencies. First of all, it concerns the dollar and the euro. This stimulates demand from foreigners and Czech citizens who live and work in other EU countries.
The largest group of foreign investors are representatives of Western Europe – the British, Germans and Italians. Also in recent years, the demand from the citizens of Russia, Ukraine and other states of the former Soviet Union has significantly increased.
Demand is growing, and supply remains limited. In Prague, the construction of new housing is a long and complicated process, so changes in the situation in the coming years should not be expected. Buyers are most often interested in real estate in prestigious areas. In particular, the villas built before 1948.
Maxim Petushkov from SODUL Development srotold about the demand of Russian buyers for Czech real estate: “The demand is really very high, the apartments are scattered like hot cakes. Of course, on the part of the Russians and citizens of the countries of the post-Soviet space, it is incomparable with the level of 2008, but nevertheless it has not decreased compared to a year earlier. However, the average transaction amount has fallen significantly. Most customers are looking for properties worth up to € 100-150 thousand. “
News number 1. The average profitability of real estate in Sofia reaches 5.4% per annum
You can rent two-room apartments in the Bulgarian capital for € 300-500, three-room apartments for € 400-800, and multi-room apartments – from € 900 per month.
Such data was published by Bulgarian Properties based on an analysis of the database of current offers for the sale of apartments for rent.
Analysts believe that in the southern districts of the city, such as Vitosha, Mladost, Manastirski livadi and prestigious quarters, the profitability of the rental business may exceed 6% per annum.
When renting to tenants of apartments in the Lozenets quarter, Hilodrum, Beli Brezi and the areas near the Medical Academy and Sterlbieste quarter, you can earn more than 5% per annum.
Also, the company’s report showed that now investments in new construction provide a yield of about 6-6.5% per annum, depending on the characteristics of the apartment. Housing in new buildings is still offered at low prices, although there is a tendency of growth.
Polina Stoykova from Bulgarian Properties told about which cities in Bulgaria primarily attract investors from Russia and Ukraine: “Russians and Ukrians prefer major cities such as Sofia, Varna and Burgas. There are several reasons for this. Sofia is the capital and provides the greatest potential for further growth in property values and rental income. Varna and Burgas are located on the Black Sea coast, which makes it possible to make a profit from the rental and your own summer vacation. ”