The reasons behind the numerous real estate investments in Europe are many and varied. There are those who buy a second home in a seaside or mountain area to spend their holidays and those who decide to change their lives in another country. There is no shortage of investors who see in the foreign brick the possibility of a high profit, generated by rents and rents or by the resale of the property itself in a period of rising.
A driving force for the growth of the European real estate market was undoubtedly given by Brexit. If that wasn’t enough Covid pandemic got into the mix and put all those looking for land for sale in limbo. But the real estate sector seems to have returned to being a safe haven that offers generous business opportunities in many parts of the Old Continent.
To understand this cross-section of the market well, it is necessary to know:
• Why buy a house abroad
• Which are the countries where it is worthwhile to invest in the real estate market abroad
• The Forbes classic on new real estate investment opportunities in Europe
Why buy a house abroad
The main reasons that allow us to look at real estate investments abroad with increasing interest are mainly two: on the one hand, sometimes our countries offer less certainty from a fiscal and legislative point of view or, on the other, several European nations propose an offer diversified with very competitive prices and, above all, a very favorable real estate taxation towards foreigners.
But it is not only non-European who are launching themselves in the purchase of houses abroad. The British seem to dominate this market and have invested a large part of their capital in Spain, Portugal, France and even in our beautiful country.
Which are the countries where it is worthwhile to invest in the real estate market abroad
According to data collected by experts, the preferred European destinations for buying a house are Spain and Great Britain. Both countries have managed to revive this market, which in other parts of Europe has been in crisis for more than a decade.
Great Britain, especially London, is the best place to buy a property as a form of investment. However, it is necessary to point out that the English capital, together with Paris, offers almost unattainable prices for the middle class of Rome and Milan. Spain, on the other hand, is popular precisely because prices are lower and its main cities, such as Madrid and Barcelona, are experiencing rapid growth in almost all sectors.
In the Top 10, however, we must not forget Berlin, the capital that until 2018 was considered the best European city for real estate investments. A mix of low prices and an avant-garde lifestyle have made it a very popular destination, especially for young people.
The state that most of all surprised in the 2019 rankings was Portugal. In 12 months, it has risen from twelfth position to first, thus surpassing the German capital. Lisbon shines at the top of the ranking thanks above all to the economic policies of the last governments that have managed to increase GDP by 2.4% while reducing public debt by 4%. The excellent management and the fact of being a novelty in the real estate panorama are certainly the two main factors that have attracted many foreign investors. The Berlin and Parisian markets have largely exploited their moment of glory and are now considered saturated, although numerically they still have good usability.
The Forbes classic on new real estate investment opportunities in Europe
In order to invest profitably, it is therefore not advisable to turn exclusively to an established real estate market. In fact, the great Real Estate companies act as talent scouts looking for new real estate destinations to explore and conquer.
On this topic, the American magazine Forbes, specialized in Finance and economics, flanked by LeadingRe formed by a consortium of 565 real estate agents located in 70 different countries, has drawn up a ranking of the best EU cities to invest in brick to obtain excellent margins. of earnings.
Italy, Naples: Thanks to the Amalfi Coast and the famous islands of Capri and Ischia, the Campania capital has always been considered a popular tourist destination worldwide. The warm climate and the affability of the population contributed to the choice of the destination, which last year increased real estate sales by 15%.
France, Megève: Its ski slopes are a popular destination for winter sportsmen, especially the British and their Swiss neighbours, who can practice their beloved sport here and spend holidays in nature at much lower prices than those of their country.
Georgia, Batumi: Belonging to a nation that is only today managing to get out of the hegemony of the former Soviet Union, Batumi is the third port city of the country and is famous for hosting the Black Sea Resort. One of the most appreciated features is the lack of height limits in the construction of buildings, which is allowing architects and investors to build several units even in small lots. Estimates speak of about 22,752 houses built in the two-year period 2018-2019 and all created according to the growing demand.
Portugal, Porto: If last year Lisbon was awarded by several rankings as the best city to make real estate investments in Europe, in 2020 it seems that this same primacy will go to nearby Porto. Home prices are still 30% lower than the capital, but sales have grown 15% in less than a year. Portugal's luck is also based on the fact that it is one of the cheapest places to get a famous gold visa for European citizenship.
Holland, Rotterdam: Resting on the banks of the Meuse, Rotterdam is famous for hosting the largest port in Europe. The attention in the Real Estate sector has come as many investors find neighbouring Amsterdam too expensive.