Residential markets across Southeast Europe have recovered strongly since the start of the coronavirus (COVID-19) pandemic, though prices remain the lowest in Europe, a report from Deloitte shows.
Most markets in the region experienced a dramatic slowdown in activity during the initial spring lockdowns, but this was followed by a rebound in transactions later in the year, and, in many cases, fresh interest in houses and properties away from major cities.
Austria became the most expensive country across the countries surveyed, at €4,457 per square metre, just ahead of France at €4,421. Germany, the UK and Israel followed. However, the French capital Paris remained the most expensive city to purchase a square metre of apartment in Europe, followed by Tel Aviv and Munich.
At the other extreme, the average transaction price for a new dwelling was just €578 per square metre in Bulgaria and €881 per sqm in Bosnia & Herzegovina, despite the revival of both markets from the summer of 2020.
Seven other countries from the eastern part of Europe – Slovakia, Latvia, Croatia, Hungary, Poland, Serbia and Romania – also recorded average prices of between €1,000 and €2,000 per sqm in 2020, along with Ireland and Portugal, putting them at the cheaper end of the market. The highest price growth in 2020 was recorded in Hungary, at 12.3%.
Paris was also the most expensive market for rental properties at €28.6 per sqm per month, followed by London and Oslo. The lowest average monthly rent was in two Bulgarian Black Sea cities, Burgas at just €2.9 per sqm and Varna (€3.5 per sqm). Rental rates were also low in three other Southeast European countries: Bosnia, Croatia and Serbia.
“[A]ny negative impacts the pandemic might have on residential markets are considered to be mostly short-term,” said the report, Property Index: Overview of European Residential Markets 10th edition, July 2021. It also noted the higher level of savings during the year that are now being channelled into real estate purchases. “During the spring wave of pandemic in March and April 2020, almost all non-essential workers have stayed at home. This resulted in limited spending for specific types of goods and services and subsequently led to a higher volume of savings. In some countries, during lock-downs, citizens were able to save even 20% more of their income than during ordinary months.”
Commenting on longer-term trends, the report added: “because of problems connected to pandemic, we … observe a push to modernise many European economies with the ultimate aim of long-term sustainability by making them more digitalised and green, which will inevitably change the way we perceive many aspects of residential real estate markets.”
Vibrant growth in Romania
Romania’s real estate has been growing fast, and in 2020 the number of dwellings delivered reached a new record, while the number of transactions increased compared to 2019, the report said.
This followed an initial hiatus in the residential market that was followed by a rebound in real estate transactions in the second half of the year.
“The middle market segment of the residential market was more developed in 2020 due to the desire of buyers to live in larger spaces in context of work from home, increased disposable household income and low interest rates, which made housing more affordable,” said the report.
Meanwhile, lower supply and higher demand within the rental segment kept up pressure on rental prices; in Romania’s six largest cities, rental prices were 30% higher than in 2019 last year.
Romania also had the highest number of initiated properties across the Central and Southeast Europe region last year, and the second-highest in Europe after Austria. In Romania there were 7.5 initiated dwellings per 1,000 citizens in 2020.
At the other extreme, only 2,400 dwellings were completed in Bosnia in 2020, making it the country with the lowest development intensity per 1,000 citizens. Low numbers of dwellings were also completed in Latvia and Bulgaria.
Developments in Bosnia, which had seen small but steady growth rates in the residential market in 2018 and 2019, broadly reflected those in international markets. “At the start of the pandemic, residential property transactions fell significantly due to the introduced uncertainty. Transaction volumes then spiked and quickly normalised as the markets mirrored the world and adapted to the new conditions, overall remaining in line with expected numbers in the last quarter of 2020,” the report said. The report noted a “spike in demand across the board of segments”, both the higher-end and the more affordable.
On the other hand, the rental sector was badly hit by the pandemic, as short-term visits to the country were halted and there was a fall in long-term rentals, for example for university students.
Bulgaria’s housing market slowed down significantly in 2020, after five years of steady price rises and strong demand supported by growing household incomes, record-low mortgage interest rates and low unemployment. However, after the spring lockdown, “activity was resumed immediately after the measures were eased in May 2020. Buyers were rushing to buy homes before a possible second wave in autumn occurs. This led to high market activity all through the summer and autumn months, compensating for the lower sales volume in the second quarter,” the report said.
As a result, Bulgaria’s residential market had a successful second half of 2020, with property prices continuing to grow. Demand shifted towards previously overlooked properties such as rural houses, as well as vacation apartments in the ski and beach resorts. “In our view, this was all driven by the need to have your own space for recreation, outdoor activities, and the possibility to work from anywhere,” Deloitte commented.
Rising prices in Serbia
The least affordable housing – measured as the number of average gross annual salaries needed to purchase a standardised new dwelling – was found in Serbia, where buyers needed an average of 15.2 gross annual salaries to purchase a standardised dwelling. Serbia was followed by Czechia, where 12.2 gross annual salaries were required. Several other countries in Central and Southeast Europe were also among the least affordable. Properties were most affordable in Norway, Bulgaria, Ireland, Portugal and Belgium.
Serbia entered the pandemic after constant growth in the residential market since 2016. The market contracted sharply during the state of emergency in spring 2020. However, Deloitte noted a rise in the price of weekend and recreational houses in rural areas by 20% on average, as Serbians sought to escape the strict measures imposed in the cities. Post-lockdown, the real estate market “quickly bounced back in Q2 of 2020 and continued throughout to Q1 of 2021”, though the report added that buyers are still cautious and are expected to remain so until the situation stabilises permanently.
While Serbia saw only a small dip in GDP in 2020, neighbouring Croatia was one of the worst hit countries in the region by the pandemic, due to its large tourist sector. Despite this, residential property prices in Croatia continued to rise in 2020. The price per metre for new homes in the capital Zagreb rose by 7.38% during the year. Two serious earthquakes, in Zagreb in March and Petrinja in December, affected the market, contributing to the demand for new homes.
Activity in the real estate sector mainly halted in Slovenia in spring 2020, but after the state of epidemic was cancelled, the number of transactions quickly returned to previous levels, while sales of houses increased – rising by around 15% year on year in July-August 2020 – while apartment sales remained flat. This was the followed by a second decline in transactions in December 2020, though the fall was shallower for houses (20%) than for the overall market (35%).
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
