Real Estate Investor Magazine South Africa May 2013 | Page 57

OFFSHORE
loans for house purchases were 18% of total
loans granted to households.
Foreigners from countries which grant
reciprocal rights can buy residential property
in Macedonia, subject to approval from the
Ministry of Justice, but landed property is
somewhat more complicated. The gross rental
yield in the city centre is 3.46% and outside the
city centre it’s 3.78%.

Istanbul, Turkey
2011 and 2012 saw Turkey’s property prices
increase on average 11.5%, astounding when you
consider that one of Turkey’s near neighbours,
Greece has been undergoing the Great Greek
Depression. After the changing of Turkeys
rating from BBB- to BB+, their economic
situation has become far more stable than a lot
of countries and investment money is pouring in.
With rapid population growth there is a demand
and need for housing which is making the price
of property increase but not so high that the
property is expensive.

Chisinau, Moldova
Moldova is a small country with high rental
yields. The capital, Chisinau, has very steady
prices and offers up to a huge 13% yield

Chisinau, Moldova

www.reimag.co.za

on small apartments, which is better than
any where else in Europe. If Moldova ever
becomes an EU members then there is the
real possibility of capital growth too in the
future. With rental yields of around 11% for
medium sized apartments, Moldova offers real
investment opportunities. Non-agricultural
land can be freely bought and sold by anybody.
However foreign citizens, companies, or
states cannot buy agricultural and forest land,
though they can lease short term (1 – 3 years),
or long term (5 – 99 years).

Riga, Latvia
The Latvian economy has been on the road to
recovery since 2011 and has experienced real
GDP growth since 2011. And 3% economic
growth is predicted for this year. In Riga
suburban yields are between 5% and 6.4%.
The rental market and laws are generally prolandlord and residency is dependant on real
estate investment, where and what you invest in.

Rome Italy
Investing in Rome is a wise decision; it’s one
of the most attractive and interesting cities in
the world and is a tourist hotspot, boasting
culture and historical artefacts, which draw
tourists from far and wide. Unlike in most of

Riga, Latvia

Rome, Italy

Europe the house prices in Italy did not boom
as high and so are unlikely to bust as bad. Be
wary of older property and purchasing until
you have a clear idea of ownership as some
properties may have several owners. On the
positive side capital gains tax in Italy is nil
after five years of ownership.

Berlin, Germany
Germany is the healthy child in sickly Europe
at the moment, and has surpassed the UK in
terms of most favourable property market in
Europe. Property in Berlin is among the least
expensive in Europe. Property is available
in the German capital at less than 1,000
euros/m² (around £800/m²) which compares
with Paris at 6,000 euros/m² (£4,800/m²).
Germany also boasts a healthy and competitive
mortgage market, with banks lending between
50 – 60% of the valuation and at lower rates,
which can be fixed over a number of years. The
favourable conditions in Berlin and Germany
have seen private-equity f irms purchasing
property in Germany at a high rate.

RESOURCES
Global Property Guide

Berlin, Germany

May 2013 SA Real Estate Investor

55