Despite the continuing Eurozone debt crisis, London has become a somewhat stabilizing force in European property markets. doha property finder
Douglas & Gordon's sales director, Ed Mead, tells World Property Channel, " "In these difficult economic times, the London property market continues to be seen as a safe haven, with record numbers of properties sold to foreign buyers. Previously, foreign buyers concentrated on prime central London, but we've recently seen purchases in Battersea Park, Southfields, Pimlico, and Hammersmith by Russian, American, and French buyers." French buyers have been successful across the London market at all price levels as a result of the recent French elections, earning London the title of '6th largest city in France.' " Despite the demand and low inventory levels, buyers are steadfast in their resolve to withstand the economic and mortgage storm, but they appear to have reached their price elasticity limit at the moment.
"As a result of the surge in buy-to-let landlords buying in time for the summer lettings season, the number of flats on the market is smaller than this time last year."
"Rental prices are holding steady as we reach the busy Summer letting season," Virginia Skilbeck, Douglas & Gordon's Lettings Director, said. "With a 40% rise in the amount of available properties on our books and a 35% increase in tenants applying for rental properties in London compared to this time last year, rental prices are holding firm."
To avoid being left with little option later on and to work around the Olympic season, tenants are settling early and have secured properties in May that they will move into in July/August. At this time of year, family houses in the most desirable areas are in high demand, as proximity to a particular famous school will result in numerous offers as soon as the property hits the market."
Home prices in Austria are also rising, as they are in Germany.
Austrians, mindful of the Eurozone financial crisis, are betting and investing in residential real estate these days. Austrian prices, like those in neighboring Germany, are increasing, especially in the fabled city of Vienna.
The suburbs of Vienna have seen a rise in demand for homes, according to Select Property, an international residential broker based in London.
According to the brokerage, "people know that they can get a larger property with more living space for the same amount of money that they would pay for something much smaller in the area."
This has resulted in significant price rises, with apartments in Wiener Neustadt increasing by 25% year on year and houses in Korneuburg increasing by an average of 17%.
The average price per square meter in Vienna's Mariahilf district increased by 16 percent to €4100.
The small rise in rental rates, which increased by 1.6 percent on an annual basis for the first six months of the year, would help buy-to-rent property investors, according to the brokerage.
Other areas that saw real estate price increases included Penzing, which saw a 35 percent increase over 2011 and suburban areas, which saw increases of 10 to 30 percent.
Alexander Ertler of Select Property said: "Fear of losing money due to inflation and financial market uncertainty is driving a growing number of Austrians to invest and seek protection in the property market.
"Despite the Eurozone crisis continuing to make headlines and dampen spirits," Germany and Turkey "both seem to be doing well." "According to the brokerage,
"As a neighbor to the resilient Germany, the fact that house prices are rising in Austria shouldn't come as a surprise."