Top 5 EU countries for real estate investment in 2020-2021

September 25, 2020·Invest

Always on the lookout for the most beautiful real estate projects around the world, La Maison iKeys is taking you on a Euro-Tour today, where we will discover five European destinations for real estate investment in 2020-2021. Portugal, Greece, Cyprus, Malta and Montenegro, pack your bags and let's make this trip together!

Portugal: sun, sea and luxury villas

Portugal experienced a 10.3% growth in the value of real estate in the first quarter up to March 2020, which immediately puts it at the top of the list for capital growth compared to other destinations. Lisbon, Oporto, Lisboa and Estoril all experienced strong growth due to low interest and mortgage rates and strong rental demand in more urban areas. It is therefore not surprising that there are more than 200 real estate companies working with foreign buyers in Portugal, including larger corporate players and local agencies.

Considering the lifestyle, the Algarve region is famous for its good weather and fantastic golf resorts. This is where luxury meets lifestyle and investment. The Silver Coast of Portugal, in the north, is also a popular destination among property buyers. The area stretching from Ericeira (1 hour drive from Lisbon) to Nazare is well known for its unique scenery and steady flow of tourists.

Investing in Greece

Is it too early to invest in Greece?

The crisis of 2008 affected the entire Greek economy. The price of real estate on the islands of the Cyclades knew a consequent fall following this crash. The value of some properties has even fallen by 30%. Buildings located on the seaside fared better with a drop of only 20%. Today, Greece is gradually recovering from this crisis and its economy is gaining new momentum. In 2018, real estate prices grew between 0.5 and 1.2%. It is therefore the ideal time to buy a home under the sun in Greece, as prices are gradually recovering.

The best places for real estate investment in Greece are :

  • The Ionian Islands, which still impress tourists with beautiful landscapes and a much sought-after Mediterranean lifestyle.

  • The islands of the Cyclades can also offer everything even the most demanding buyer could ask for: from isolated houses facing the sea to cave villas close to the main tourist attractions.

Real estate investment in Cyprus

Unemployment in Cyprus is declining, leading to a strong increase in rental demand and a moderate increase in rental yields. Not surprisingly, property investment in Cyprus has become so popular with foreign buyers looking to expand their portfolios. In the period January to June 2019, 45% of properties in Cyprus were purchased by foreign buyers

Property prices are more volatile in Cyprus so buying at the wrong time could be expensive but buying at the right time can be very profitable! In addition, Cyprus could provide the fastest route to obtaining permanent residence - and EU citizenship, with a waiting period of only 6 months and a simple 4 day visit before obtaining citizenship. This is ideal for those looking for the best real estate investment to obtain European citizenship and potential rental returns.

Malta: a small island with great opportunities

Real estate investment in Malta would see an investor potentially benefit from a sharp rise in property prices. Low interest rates and an extremely efficient personal tax structure have long attracted investors to Malta. Real estate investors in Malta should also consider residency and citizenship opportunities rather than pure financial gain.

Access to the EU market and the efficient tax structure of property and personal income are often the main drivers for wanting a Maltese passport - the 8th best in the world for visa-free travel.

Montenegro, the richest country in the Balkans

With EU membership potentially on the horizon, is this the right time to consider investing in this as yet little-known Balkan state? The country has a nice real estate portfolio to offer to foreign buyers, from high-end developments in and around Porto Montenegro, to the Bay of Kotor, as well as brand new waterfront residences facing the Bay of Luctica or charming stone villas in Herceg Novi, Budva or Sveti Stefan.

It is interesting to note that the country has a special residency program for yacht owners staying at marinas in Montenegro for more than 90 days. Real estate investment in Montenegro is becoming an increasingly sought after option.The country is being increasingly urbanized and the government is putting a lot of money behind attracting wealthy real estate investors (think of James Bond in Casino Royale).

Montenegro offers unique opportunities for the adventurous real estate investor.

The iKeys House aims to find you the most beautiful properties, in the most sought after or exclusive destinations. Contact us now to bring your projects to life.

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