Real estate investment is a popular direction of making money but it is important to select property carefully if you want to get profit. The European real estate market can be very attractive for investing, but only some cities became especially appealing last year according to the statistics. When you select real estate for the investment, you should pay attention not only to the city or town it is located in but also other important factors.
The most important factors to consider selecting a property for investment
If you have decided that your investment must be in one of the cities located in Europe, it is important to evaluate several factors that play a significant role for potential buyers. Multiple surveys conducted among real estate agents working in Europe confirm the fact that buyers pay attention to several important things including:
The age and condition of the whole neighborhood matter too. People want to live in a place that is constantly developing and growing: there should be an increase in jobs, facilities, leisure activities, etc.
Forecasted real estate returns
Property that is chosen for investment should give profit and the current situation in the market should confirm this point.
Market size and liquidity
It is natural that real estate investments should be liquid and the market should not be overcrowded with offers.
City’s economic performance
It is better to choose cities that show gradual economic growth since they are an attraction for people looking for success and career opportunities. There are more chances that new people will arrive in these cities and settle there.Of course, the list of factors to consider is quite long but the ones mentioned above are the most important ones when it comes to the European market.
European cities with overall prospects in real estate 2020
According to Statista.com that has determined these important factors and analyzed them carefully, there are several cities located in Europe that have the best overall prospects in real estate. There is nothing surprising that these are ones of the largest and most popular cities and capitals. In fact, the top 7 of the cities with overall prospects in real estate look as follows: Paris (about 1 million transactions), Berlin, Frankfurt, London, Madrid, Amsterdam, and Munich. It is natural that prices for property in these cities are higher too, so they are suitable for investment only if you have enough money.
Cities that have shown signs of real estate growth
In addition to these big cities that are the most suitable for real estate investment, there are smaller European cities that have shown significant growth in the property cost last year. Moreover, experts predict that real estate prices will keep on growing there this year too. One more reason to invest in real estate in these cities is their cheaper prices for homes and high returns. Let’s see what return you can expect to get investing in the property of the following cities and towns:
- Naples, Italy
Located only an hour commute from Rome prices for real estate in Naples are much cheaper — about $200 per square foot and they have grown by 15% for a year.
- Megeve, France
Megeve has become incredibly popular thanks to a Tour de France and premium ski resorts located nearby. Experts say about a significant increase in the number of investors by 10% in the previous year.
- Székesfehérvár, Hungary
Being a highly-appreciated place for recreation and excellent rail connection with Budapest have resulted in a 17% increase in real estate prices.
- Batumi, Georgia
Being a resort located on the coast of the Black Sea and the 3rd largest city the country, Batumi has a very increased demand for property and can be a perfect place for investment.
- Porto, Portugal
Porto has become a popular destination for real estate investing mainly thanks to a change in rental laws and it has attracted 15% more buyers in comparison with the previous year.
As you can see, Europe offers a variety of opportunities for investment and you should not lose your chance to increase your profits if you look for a suitable property.