_Navigating European real estate: an expert's guide to investment opportunities
When it comes to buying or investing in the dynamic European real estate market, it's essential to have your finger on the pulse of the latest trends and opportunities.
Whether you're seeking a luxurious second home or a shrewd investment property, our expert agent, Oliver Banks, shares his insights on the state of play across major European cities.
From Paris, Berlin and Porto to Madrid, Frankfurt, Lisbon and Barcelona, Oliver shares the latest developments shaping these vibrant urban landscapes.
Oliver Banks, Associate, International Residential Development
Prioritise connectivity and walkability
Connectivity and walkability have become paramount for purchasers in European cities. Today's investors often utilise their properties sporadically, meaning they are drawn to locations close to airports to reduce commute times for second or co-primary homes.
This trend aligns with the desire for fluidity and liquidity in property assets, allowing for quick rentals or sales amid our ever-changing world.
Consider space carefully, from kitchens to study rooms
Kitchens have taken a back seat in the property market, with buyers now emphasising study rooms and spacious second or third bedrooms.
While outdoor space remains a preference, stringent planning restrictions in capital cities mean shared amenities and private outdoor areas within condominiums are highly prized.
Smaller homes can offer big opportunities
Despite a surge in interest outside major cities, there's still excellent value within European urban centres.
Smaller, more manageable homes are becoming popular due to their affordability and energy efficiency. As a result, they’re easier and cheaper to maintain, making them an attractive option for both investors and those seeking a new home.
Adopt a ‘buy the best’ investment strategy
Many investors are looking to secure the best unit in the most prestigious developments or buildings within their chosen location. While neighbouring properties might be more affordable initially, the top-tier option is likely to outperform in the rental market and prove a more liquid asset for future sales.
For investors dealing in foreign currency, it's crucial to obtain favourable exchange rates and consider future currency fluctuations when plotting your strategy.
1-3 bedroom apartment for sale in 18th Arrondissement, Paris. Guide price: €3,780,000
New developments with traditional architecture that harmonises with the city's historical charm are particularly popular. Combining aesthetics with modern comforts ensures a future-proof investment.
However, these sought-after residences tend to sell quickly, so early engagement during the construction phase is advisable.
Porto is an increasingly popular destination for investors…
Porto is making waves as an investment destination, offering exceptional value and a rich cultural experience.
With the picturesque Douro Valley nearby and a stunning coastline, this Portuguese gem has witnessed a 12.7% increase in prime prices in 2022, earning it a place among the top 10 global luxury residential markets.
AURIOS, a superb new riverside development at Quinta da China, Porto. Prices from €1,735,000
Porto airport's excellent connectivity to over 118 worldwide locations, including New York and Toronto, make it a convenient and accessible choice. The city's growing foreign resident population, which increased by 130% between 2016 and 2021, adds to its allure.
…But Madrid is showing resilience in uncertain times
Madrid's culturally rich and diverse lifestyle continues to attract buyers and investors globally. One neighbourhood that epitomises the city's appeal is Salamanca.
This upscale district, adorned with historic, honey-coloured sandstone buildings, exudes an air of grandeur that both captivates visitors and attracts buyers looking for the perfect blend of sophistication and vibrancy.
Los Jardines de Velázquez, Salamanca, Madrid. Prices from €4,450,000
Despite the uncertainty posed by interest rate hikes and inflation, Madrid's prime housing market remains robust, boasting a 6% growth in average prices last year. Research by Knight Frank predicts a 4% increase in 2023, solidifying its reputation as a resilient investment option.
Meanwhile, Build to Rent is a promising sector, given its high demand and current limited supply. While economic conditions may restrain real estate investment in 2023, Madrid continues to shine as a beacon of stability and growth.
Explore the latest properties for sale across Europe here
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