By Rachel Beech | Monday 14 April | 09:41
Can you still make money from property in Europe? Emerging markets, such as Warsaw in Poland, may be showing signs of boom and bust, but there are still bargains to be had. We check out some of the best places to buy in Europe for return on investment, sunshine, skiing and buy-to-let.
1. Romania: good for return on investment
Romania is a good choice if you’re looking for maximum return on investment. Now a member of the EU, Romania’s economic prospects are excellent thanks to massive regeneration and infrastructural investment.
Bucharest is a cosmopolitan city with plenty of overseas investment. Goldman Sachs, BMW, Boeing, Bosch, BP, Hewlett Packard and Unilever have all opened operations in Bucharest in recent years. Thankfully, much of the classical architecture has survived and the city has much more to offer than concrete tower blocks. Despite a huge surge of overseas interest, you can still pick up a three-bedroom property in the countryside for £30,000.
2. Portugal: good for sunshine
A low cost of living, cheap flights to the UK and more than 300 days of sunshine a year make Portugal a popular choice for Brits wanting a second home overseas.
The country’s many excellent golf resorts are a driving factor in the property market, particularly in the mature resorts of the Algarve. A two-bedroom apartment in central Algarve can set you back £100,000 whereas a three-bedroom house along the Silver Coast can be snapped up for £45,000.
3. Sweden: good for skiing and scenery
Spectacular alpine scenery and well established ski resorts make Sweden the cool option for many UK buyers. Sweden is also one of the least populated countries in Europe, making it the ideal choice for those wanting to get away from it all.
A three-bedroom cottage requiring refurbishment in Bjorketorp, near the south coast, will set you back £50,000. Before you grab your skis, keep in mind that the cost of living is high compared to UK standards.
4. Germany: good for buy-to-let
Germany has one of the biggest rental housing sectors in the world, with 58% of Germans choosing to rent rather than buy. The figure is even higher in the cities. In Berlin, up to 85% of people are tenants.
UK citizens can buy without restriction in Germany, although they are generally required to cover at least 60% of the purchase price. A two-bed apartment in Charlottenberg, an exclusive area of Berlin, will set you back £110,000.