Prime Real Estate Investments in Europe for 2024: Where to Invest?

As the global real estate market undergoes constant evolution, 2024 emerges as a pivotal year for property investors. If you’re considering foreign investments, some European countries stand out. Here’s a glimpse into four promising nations for real estate investment in 2024: Portugal, Spain, Italy, and Greece.

Portugal: A Haven for Retirees and Investors

Portugal continues to captivate with its pleasant climate, quality of life, and attractive tax benefits for foreigners. Cities like Lisbon, Porto, and the Algarve present excellent potential for appreciation, driven by growing demand for housing among European retirees and digital nomads.

As of October 2023, the average price per square meter in Portugal ranged between 3,331 CHF and 3,825 CHF, with an overall average of approximately 3,563 CHF for apartments.

Rental yields for properties in Lisbon, for example, vary between 3% and 6% gross. This rate is considered favorable for the Portuguese market, especially in low-risk areas.

Spain: Sun, Sea, and Profitability

Spain remains a top destination for real estate investors. Regions like the Costa del Sol, Barcelona, and Madrid are highly sought after for their economic dynamism and tourism appeal. Spanish real estate offers a balanced mix of purchase prices, rental potential, and long-term appreciation.

By the end of November 2023, the average price per square meter for properties for sale in Spain was 2,204 CHF, marking an 8.30% increase from the previous year. Prices, however, vary significantly across regions, ranging from 1,063 CHF/m² in Castilla-La Mancha to 4,679 CHF/m² in Andorra.

At the end of 2023, property rentals were, on average, 9.2% more expensive than the previous year, reaching an average of 13.05 CHF/m². Some Spanish capitals, like Murcia and Lleida, boast rental yields of 8.3% and 8%, respectively, followed by Huelva with 7.6%. Other cities like San Sebastian offer more moderate returns, at 3.8%.

Italy: Charm and History for Unique Investments

Italy, with its picturesque landscapes and historic cities, attracts investors seeking unique properties. Regions like Tuscany, Lombardy, and Sicily offer a variety of real estate, from rustic countryside houses to elegant urban apartments.

The average price per square meter in Italy in October 2023 ranged between 3,331 CHF and 3,825 CHF. However, there are significant variations across cities. For example, the price per square meter in Milan was approximately 9,818.28 CHF, while in cities like Frosinone, it was as low as 1,029 CHF.

In terms of rental yields, expect around 4% in Rome. In Milan, property prices have increased by 30% since 2018, indicating a robust real estate market, with rental yields around 6-7%.

Greece: An Emerging Market Opportunity

Greece, undergoing economic recovery, presents compelling opportunities, especially in islands like Santorini or Mykonos. The Greek Golden Visa program is an additional asset, allowing non-European investors to obtain residency.

As of October 2023, the average price per square meter for properties in Greece ranged between 3,067 CHF and 3,506 CHF. Prices vary significantly across cities and regions, with examples like 5,935 CHF/m² in Glyfada and 1,622 CHF/m² on the island of Kos.

Some cities also offer enticing rental yields. In Athens, for example, the average rental yield is estimated between 5% and 6%, a figure considered highly attractive for a European capital. This yield can rise to approximately 13% for furnished apartments rented seasonally, as offered on platforms like Airbnb. Property prices in certain Athens neighborhoods, such as Omonia, are relatively low, around 1,084 CHF/m², presenting intriguing investment opportunities.