How the size of the capital and the behavior of owners of foreign accounts: the study of Tranio and Adam Smith
Russia joined the agreement on the automatic exchange of financial information (Multilateral Competent Authority Agreement, MCAA), and at the end of December 2017 the OECD published a list of countries…

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30% of new apartments in Barcelona will be allocated for social housing
The Commission on Environment, Urban Planning and Mobility in Barcelona (Comissió d'Ecologia, Urbanisme i Mobilitat) approved an amendment to the master plan of the city: according to the new rule,…

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Russian-speaking investors in profitable real estate abroad: an analytical study of Tranio
In early 2018, Tranio once again investigated the behavior of Russian-speaking investors abroad. We relied on the results of an online survey, which involved 476 real estate market leaders from…

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The Bank of England raised the base rate to 0.75% – how will the real estate market react?

On 2 August, for the first time since November 2017, the Bank of England raised the base interest rate by 25 basis points to 0.75%. This is a record rate over the past nine years – so the financial regulator is trying to slow down inflation from 2.4% to a target value of 2.0%. How will the real estate market change?

Due to the growth of the key rate, mortgage loans will rise in price. According to the calculations of The Guardian, an additional 0.25% will add an average of £ 25 per month to a loan worth £ 200,000. However, according to the publication, 70% of borrowers in the UK pay loans at fixed rates, so the majority of Britons will not feel the changes. According to the Building Societies Association, the number of loans issued for the purchase of residential real estate decreased by 3.7% to 75.9 thousand year-on-year by June 2018.

The number of loans issued for the purchase of residential real estate in the UK
Over the past ten years, the cost of residential real estate in the UK has increased by 20%. According to the latest data of Her Majesty’s Land Registry (HM Land Registry), in May 2018 its average price was set at 226.4 thousand pounds sterling – 0.1% more than in April and 3% more expensive than a year earlier . However, the annual price increase slows down: for example, in April it was 3.6%.

Property in London is twice as expensive. In summer, analysts observe seasonal growth, but at an annualized rate, prices are falling: in May 2018 the average cost of housing was 478.9 thousand pounds sterling – 0.1% higher than in April, but 0.4% lower than a year earlier . In April, the dynamics in annual terms amounted to -0.3%.

The average cost of residential real estate in the UK and London
The number of transactions with residential real estate is declining: in June 2018, 107.8 thousand residential properties worth more than 40 thousand pounds sterling were purchased – 9% less than a year earlier. According to the Monetary Policy Committee, one of the reasons is the slow increase in real incomes of the British: according to official data, their annual increase by the first quarter of 2018 was only 0.3%.

How has the UK property market changed over the last year
The official forecast of the Bank of England after the increase in rates – real estate prices will continue to increase by 3% per year, and the number of transactions will grow slowly. In general, the UK economic scenario remains favorable: according to the calculations of the financial regulator, the annual GDP growth rate will accelerate from 1.4% in 2018 to 1.7% in 2021, and inflation will drop to 2.2% in 2019 and reach 2, 0% by 2020.

Real estate in the Austrian Alps - a promising direction for investment
Alps - the world's largest market for ski tourism. According to estimates of Laurent Vanat, the founder of the Swiss consulting company Laurent Vanat Consulting SARL, this region accounted for…

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The procedure for the purchase and registration of real estate in Greece
To buy property in Greece, it is enough to come to Greece once. The purchase process includes 7 simple steps.                     …

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How to get a Greek residence permit for financially independent persons?
Greek residence permit for financially independent persons is issued to foreigners whose income in their home country exceeds 2 thousand euros per month. Together with the main applicant, such a…

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Protests in Iran could trigger an increase in demand for property abroad
Great Britain “Over the past two years, after Obama eased sanctions against Iran, there are more Iranian clients in the UK market,” said Yevgeny Tripuk, broker of the British financial…

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