European real estate investment is common for many foreigners. But what countries can guarantee you safety and augmenting for your investments? Portal ee24.com has analyzed where in the Old World the global economy’s vicissitudes are unlikely will ever affect houses and apartments you bought. European real estate payback period, especially in the safe places, counts at least 20 years, maindoor.ru analysts say. And besides the more expensive the object that you want to invest, the higher the payback horizon should be taken into account. But stability is expensive.
1. Venice
Investing in Italian real estate is stability above the all. Italian cities with a great history such as Rome, Florence and Venice always have attracted and always will have attract investors, tenants and buyers. The lower value threshold of the Venice apartment is about €750,000. You also can consider investing in more expensive property. For example, a recently restored Al Palazzo Lion Morosini not far from Piazza San Marco will cost you €25 million.
2. Cote d'Azur
The real estate market in France is protected from economic fluctuations. Mortgage indicators in France are one of the highest in Europe. French Riviera is worth of special attention. Its popularity among the wealthy people as great as once in the XIX century; property prices are rising steadily. Current prices for apartmentу start at €60,000, and €45,000 for the house away from the sea coastline. In Nice, the heart of the French Riviera, housing prices start at €140,000 and the square meter costs about €4,000. There’s no price ceiling for French real estate investment; prices for luxury real estate in the south of the country can be expressed in millions of euro.
3. Ibiza
One of the best youth resorts, Ibiza, is also included in the rating. Price stability is explained by the popularity of the island among European youth. Rental income is guaranteed. In addition investments in property in Spain are justified by the low rents expenditures and taxes. Average cost per square meter in Ibiza is about €2,800. There are a lot of variations for investment, from a house with 6 bedrooms for €2 million to the villa with 22 bedrooms for €7.5 million.
4. Vienna
Another safe spot is stable Austria with its laws guaranteeing protection of the owner’s rights and excluding the real estate price speculation. Vienna is a popular place for foreign real estate investments. You can succeed leasing student’s apartments or luxury property. However if you want to invest in real estate in Austria it will cost you a pretty penny. Vienna is an expensive city with prices for square meter starting from €2,500-3,500; investments in luxury properties require at least €1.5 million. Prices increase by 10-15% per year and the growth is stable.
5. Gibraltar
Gibraltar economy was weakly affected by the crisis of 2008, not to mention the stability of the other periods! The limited area ensures a steady demand for housing. Do not forget that for generally there is no income tax or taxes to transfer the property by inheritance. Prices for apartments start at €350,000 and can count to €5 million at the seacoast.
6. Berlin
According to Emerging Trends in Real Estate Europe research Berlin is one of the most attractive cities for those looking for safe areas for investment in foreign real estate. Berlin distinguishes with the influx of highly skilled professionals which affects the real estate market. To invest in real estate in the German capital generally you’ll need €3,000 or less per sq.m.
7. Munich
Another island of investment safety in the rating is Munich. According to businesspress.md the prospects of investment in Munich real estate is confirmed by demographics and high purchasing power of the residents. The price of apartments in the Bavarian capital ranges from €3,000 to €5,000 per square meter depending on the area of the city.
8. London
London is the champion in real estate investments among other UK cities. It explains with the real estate market liquidity, a stable currency and a relative non-involvement of London in economic fluctuations in the UK and the EU in general. House in the central London will cost you €19-20k per sq.m and the level of prices for apartments is very flexible between €13,000 and €20,000 per sq.m. Payback is guaranteed by the high rental demand.
9. Lake Geneva
Despite the fact that the real estate market on Lake Geneva is seasonal, the yield of the object is quite stable and according to analysts is up to 8% per year with an annual cost increase of 3-5%. The cost of housing is approximately €2,500 per sq.m. The transport infrastructure in the Swiss part of the lake shore is more developed than in the French one.
10. Paris
Investing in the real estate in Paris will be repaid through the lease; there’re a lot of students in the city and the real estate market is very stable comparing with the rest of Europe. Apartment’s cost per square meter in Paris can go to incredible €55,000 but the average amount is obviously smaller and it’s about €8,440. You can find cheaper accommodation with lower price, which depends on the Paris district.
Text: Valeria Myshkina, especially for ee24.com