A research report compiled by property investment firm Colordarcy has revealed that the worst performing real estate markets of 2012 were the Netherlands, Slovenia, Greece, Portugal and Ireland. Among the few real estate markets to perform well were Florida, Brazil and Turkey.
According to the firm's findings, Dutch apartment prices dropped by 8.2% in the third quarter of 2012 and some Dutch homeowners currently have the highest mortgage debts in the whole of Europe.
Slovenia was tipped as one of Europe's most promising markets just five years ago; however, according to the most recent figures collated from the first quarter of 2012, property prices were down 4.9% from the previous year. There are additional concerns regarding the use of property values against debt insurance where the value of property has been overestimated.
In the firm's previous report, Greece was cited as one of the worst countries for investment in 2012. This prediction proved to be correct, as property values fell by 9% in the first quarter of the year, 10% in the second quarter and 12% in the third quarter.
While properties in Portugal's popular holiday resorts remain expensive, the country's economy is one of the worst in Western Europe. Flat prices are continuing to drop at a rate of 10% annually, and overall property prices saw a 7.9% year-on-year drop between 2011 and 2012.
Dublin property prices are still 55% off their peak, and the possibility of obtaining a mortgage on an income of less than 100,000 euros is virtually impossible.
Loxley McKenzie, managing director at Colordarcy, concluded: "At least investors can now look forward to 2013, with property still the number one investment choice for financial gain."
