Housing investments are rising again in all of Europe, the most investments are for rental housing. Nowadays is one of the sectors what else calls the investors, because of the economic uncertainty and the sanitary crisis, at the same time is one of the new forms to do tourism, to rent a house just for some days, so is so easy to rent.
So this notice is based on the studies realized by the company Savills, where they affirm that the investments in Europe has increased on 2020 in more than 46.000 million euros that means an increase from 6% to 17% year-on-year, and also above the average of the last 5 years.
The top 5 countries with more housing investments are Germany with 40% on the investments, Netherlands with 15%, Sweden with 12%, and Denmark, Spain and the UK with 6%.
Watching all this data on this Study they talk also about the necessity of a regulation and changes on the sector, mainly because the demand is much superior than the offer, and this makes a huge rise in the prices of rental housing and also on the profit margin. Now the cost effectiveness is about 3.5% but we hope it will end the year about 5%. So this problem in some countries makes the necessity of increasing the salaries, but on the information they affirm that this is not happening until the confidence in Europe rises again.
So they stand out that the problem is the deficit on affordable rental housing, a big problem that is happening in most European capital cities. Mainly in Spain we are having this problem every day, where Savills affirm that the government should boost this market to make it more accessible. Also they conclude saying that the better cities on productivity and competitiveness are those where the housing prices are more accessible for everybody.