Europeans Buy Boston Real Estate

We have been working with more and more Europeans over the past six months, all of whom are interested in purchasing downtown Boston real estate, not because the core of downtown Boston is in a real estate crisis (see No Real Estate Crisis in Boston), but because their “dollar” (i.e. Euro) is going a lot farther than it ever has in the past.

In essence, since the launch of the pan European currency, called the Euro, we have seen a complete flip flop in its value. One Euro went from being worth less than 70 US cents in 1999, to now, almost 1.5 US dollars. The euro (currency sign: €; banking code: EUR) is the official currency of the European Union (EU), and has been implemented in 15 member states, known collectively as the Eurozone (Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Spain). Yes, the UK still uses the Pound, but the trend there is the same; as demonstrated in the chart below, the Euro continues to appreciate against the dollar (i.e. one Euro is now worth almost $1.50, and has been moving up since 2003).

The one economic mantra that you are more than likely familiar with is buy low, sell high. The Europeans are contacting us because, at this point in time, they have the ability to buy low. For Bostonians, and those here in the US, prices aren’t “low” (and in real terms, prices continue to rise in the core of the city, more to come on this soon), however, for Europeans, who currently enjoy the fruits of a currency trend whereby their Euro now buys more dollars, prices are low, and they are seizing this opportunity.

We talk with a growing number of Europeans each week who are interested in buying Boston investment property, or a Boston vacation home in one of America’s most historic cities. Europeans recognize that downtown Boston real estate will always hold its value, and the best time to “get in” is when their currency allows them to do so at a discount.