Europe is currently at a very critical moment with several issues warming up at the same time. Debt crisis is persistent in Europe along with which there is the currency war and recent symptoms signifying the advent of a recessional phase over a majority of European countries especially the Mediterranean nations. With all this problems happening at the same time housing market sector in destined to go down in most European nations for 2013 and beyond. But in contrary to that belief European market experts are of the view that real estate in Europe may in fact do well in the coming months.
We need to understand an important aspect that the real estate environment in Europe is different from that in the United States. In USA the real estate sector is highly subjected to market downfall and economic recession. On the other hand European real estate is not exposed to economic fluctuations as property investors in Europe have their own priorities and objectives. European investors engaged in the property investment have varying approaches in context to asset class, capital growth, earning returns, risk management, etc.
The debt crisis in Europe which is perceived to kill the real estate sector may indeed help in uplifting it. Reports indicate that real estate activity have increased gradually after the onset of debt crisis in Eurozone. Unlike United States where the confidence of property investors declined considerably after the 2007 recession resulting in the downfall of the sector, confidence among European investors within the real estate industry has increased since 2009. Such kind of confidence among investors is a good sign which implies that they still believe in making profits from property investment considering that the European economy was neck deep in debt crisis during that time.
Another import factor responsible behind the growth of the property market in Europe during such disapproving times is the presence of a strong tourism sector in Europe. Tourism accounts for 5 percent of Europe's GDP and this number is estimated to increase to 12 percent by 2016 because of the increasing volume of tourism. In addition immigration and relocation is statistically high in Europe in comparison to America. Therefore real estate activity is high in many parts of Europe with significant action in both rental real estate as well as property sales.
In addition to all this, seeing the continuity and endurance of real estate market in Europe even after the prolonged phase of debt crisis and economic recession many investors are currently showing interest to invest in the housing market. In such a case real estate will possibly deliver good performance since the opportunity to earn returns is bright in property investment compared to other sectors. Investors who are looking forward to invest in the European property sector must put their attention in northern European locations like Germany, France, and United Kingdom as the economy of these nations are performing well despite that debt crisis. Avoiding Southern European countries like Spain, Italy, and Greece is appropriate for the time being because of their declining market trends and their economies falling under recession.
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