For many years, citizens from numerous countries around the globe have consistently selected a particular destination as their preferred choice for holiday getaways. Here, foreign tourists get a wonderful climate and nature, developed infrastructure of cities, masterpieces of world culture, delicious food, comfortable beaches, and warm sea. After spending a short time in the desired country, many people start to think about buying their own homes and then moving to the country for permanent residence. Therefore, in the local real estate market there is an increased demand among potential expats for houses for sale.
In addition, citizens also take part in migration and leave noisy cities in favor of resorts on the Mediterranean coast. They buy various properties there, including the following:
- apartments;
- townhouses;
- penthouses;
- bungalows;
- villas.
Some older peoples move from the cities to the countryside, where they buy houses, while young people move from small towns to big cities, where there are more opportunities for successful employment, earning more and leading an active life. However, internal migration has little effect on the property market.
Factors of migration affecting the real estate market
The main factors that affect the real estate market include the following:
- Growth in demand for almost all types of real estate. Large cities such as are especially popular among immigrants. Therefore, in popular regions, there is some increase in property prices, especially during high season and holidays.
- Due to the constantly growing demand, housing construction in almost all regions is developing rapidly. In all towns, new residential complexes are being built according to modern requirements for housing, including the advanced technologies and materials used. The following additional amenities are also available:
- modern utility systems;
- security systems;
- green areas;
- underground parking;
- pools and more.
Construction companies, operating in a highly competitive environment, are trying to meet the requirements of consumers and offer different housing options. The consequence is a significant expansion of the real estate market and the creation of new jobs, which again is a positive factor for immigrants looking for work.
- Immigrants are positively impacting the real estate market by investing heavily in properties. This definitely causes the growth of the entire economy of any country, as the influx of consumers increases due to wealthy people – carriers of consumer demand.
- With the increase in demand for real estate, the infrastructure is actively developing in the country. When choosing houses in any region, people tend to settle in a place where transport, communications, trade, education and medicine are at a high level. Today we can say that in almost any part of the country, you can get all the necessary goods and services to ensure a high quality of life.
- Thanks to the influx of tourists from other countries, the tourism industry is actively developing almost everywhere. Therefore, a special demand for real estate is observed in towns near the sea. It is impossible to pick out just one type of real estate, which is especially popular in resort towns. Not only detached houses or expensive penthouses make up the bulk of the real estate for sale. A large number of potential buyers are interested in modest apartments on the secondary market at a relatively low price.
There are also some negative trends in the real estate market, caused by increased demand for housing among immigrants. First of all, this is a rise in prices, which makes it difficult for native peoples to buy apartments and houses. According to statistics, the 1% influx of immigrants from the country’s population leads to an 8% increase in house prices over the next three years. This problem can be solved by pursuing a policy of promoting the affordability of real estate for the local population, especially in big cities and Mediterranean resorts.
Constant monitoring of the real estate market will make it possible to foresee the influence of various factors on its development and prevent negative trends. In general, immigration stimulates the development of the housing market and the entire infrastructure of any country.
