REAL ESTATE MARKET NEWS
Luxury London housing turns out to be the most expensive
The cost per square meter of housing in central London is higher than in any other city in the world. In the UK capital, it reaches $64,200, writes The Independent citing a study conducted by Knight Frank and Citi Private Bank.
The average price of luxury real estate in central London is $49,200 per square meter. Second place is taken by the Principality of Monaco, where a square meter of the most prestigious housing costs on average $46,900. Next comes New York ($34,200), and the top five is rounded out by Hong Kong ($26,300) and Tokyo ($23,500).
59% of sales of the most expensive real estate in London come from wealthy foreigners. Most come from Europe and Russia. Russians make up half of all Europeans who bought luxury real estate in London. In addition, Americans and people from the Middle East also come here. Most local buyers are high-paid employees of the City of London. Due to such demand, residential property prices rose by 32% over the year.
The leader among major cities in housing price growth is St. Petersburg. Here, the cost of apartments and houses increased by 95% over the year. Second place is Moscow (75% per year) and Delhi (47%). Experts from Knight Frank and Citi Private Bank predict that in 10 years Moscow could surpass London in housing costs. // Lenta.ru
European investors show interest in Ecuador
Ecuador has become a profitable place for investing in real estate, as renting out housing purchased there yields 12% to 17% per annum, reports the Real Estate Bulletin. Due to the increase in housing purchases in Ecuador, European real estate agents have been flocking to this country, the agency notes.
An apartment with an area of 100 sq. m in the capital Quito can be purchased for $80,000 and rented out for $800 per month. Thus, the return on real estate investment is 12% before taxes.
Buying real estate in the country's second largest city, Guayaquil, yields a lower return of 6% to 10% per year, but proximity to the ocean increases the profitability of local properties.
Montenegrins become millionaires at the expense of Russians
In the resort town of Budva on the Montenegrin coast of the Adriatic Sea, with a population of about 10,000 people, there are already more than 200 dollar millionaires. This is evidenced by the latest data from Montenegro's financial authorities, published in the media.
As experts note, Montenegrins become owners of huge fortunes by selling their land plots and apartments to foreigners, prices for which have risen hundreds of times recently. The highest land price in Montenegro is recorded precisely in the Budva area - up to one thousand euros per square meter of plot. The most active buyers of real estate in Montenegro's resort areas are Russians, as well as French, Irish, Belgians, and Dutch.
Having become millionaires overnight, Montenegrin citizens face the problem of how to spend huge sums of money. According to statistics, they most often invest in buying luxury apartments in the center of Belgrade. The population of Montenegro is about 650,000 people. // RIA Novosti