
Arc Property operates in the central and eastern European markets where our research has revealed the highest potential rates of return at minimal risk.
There are several excellent reasons to recommend these markets to our clients:
Dramatic Capital Gains:
Eastern European city centre properties are increasing rapidly in value. The housing market in some capitals is rising between 20-30% per annum, and the price of new build apartments is approximately one-quarter of the western European average. Forecasts indicate that Eastern European prices will reach parity with the West in 10-15 years time. We are confident, therefore, that new build apartments constitute excellent low risk investments that will appeal to anyone looking for both substantial short and long-term rewards.
Sustainable Growth:
Critically, this region combines rapid growth with sustainability in the long term. With full market liberalisation (and some of the most favourable tax regimes in the world), increased levels of investment, and the present or future benefits of accession to the European Union (EU), the economic growth underpinning trends in the property markets of Eastern Europe will continue for the foreseeable future.
The Baltic States (Estonia, Latvia and Lithuania) have recorded GDP increases averaging 6% per annum over the past five years. Whilst this rate will inevitably slow at some point, analysts are still predicting strong year-on-year growth of approximately 5% for the next five years.
High Rental Yields:
City housing in central and eastern Europe is currently dominated by run-down Communist-era blocks, and there is a severe shortage of new build properties to meet the aspirations of the rapidly expanding, newly affluent, middle classes. Hence, there is the exciting prospect of enduring demand, full occupancy and strong rental income.
Growing Demand:
Levels of property ownership are comparatively low in Eastern Europe due to the the restrictions on private ownership and access to credit imposed during the communist era. With these barriers now removed, levels of property ownership are beginning to rise, and will continue to do so as credit becomes more widely available. This will provide additional stimulus to the property market, creating the potential for ever higher capital gains on your investment.
Low Minimum Investment:
Given the rapid growth rate of new-build properties in Eastern Europe, purchasing property off-plan can be an especially attractive investment for anyone looking for a relatively small capital outlay. Not only are property prices in Eastern Europe lower overall, but you have the potential to earn capital gains on the entire value of the property while only ever making a down payment of 10-20% of the value of the property. For this reason, central and eastern European property promises to be an increasingly popular investment for savvy young professionals.
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