Real estate investments in Europe

Investing in real estate in Europe: why should you invest in the eastern region

Investments in real estate in Europe, in particular its eastern countries, are being chosen by an increasing number of investors from Russia. They are attracted by the economic indicators of the states – stable GDP growth and positive level of macroeconomics.
Financial experts identify three most attractive countries for investment in residential, industrial and office real estate – Bulgaria, Romania and Slovakia. The local rate of return, they estimate, is higher than in France and Germany.

European property investments: property indicators for Bulgaria

The state on the Black Sea coast has created favorable conditions for attracting investments in real estate. It has the lowest purchase tax in Europe (about 0.15%) and favorable climatic conditions.
The residential price index in Bulgaria at the end of 2018 was 7%, which is one and a half times less than the year before. This means that this type of property has become more affordable for the local population.
The yield of a house or an apartment in the central areas of Bulgarian cities is 5.4%, in the regions – almost 6%. The average yield per square meter is about 1700 euros.
The niche of office property in Bulgaria is also developing. There are only 9% of apartments, the square meter of which in the capital can cost as much as 800 euros, 2000 or 3000.

As for the industrial sector, the average rental price per meter in high-class locations is about 5 euros and almost 3 – the level below. The purchase price is between 100 and 160 euros.

Romania attracts cheap housing prices

In the last 2 years the economy and wages have been growing in Romania, while the interest rate remains low.
This country has almost the cheapest housing in Europe. According to analysts of Global Property Guide, for a square meter here are given from 1170 to 1500 euros, and a studio apartment in the center can be rented for only 280 euros.
You will have to pay 8 euros for renting one square meter, and the yield of a house or apartment in Bucharest is 6%.
In 2018, the number of office properties in Romania increased – about 150 000 new square meters appeared in this segment. Its cost when buying is on average 2000 euros, while renting will cost up to 20 euros per month.
In the industrial segment, there is also a growth of sites. Last year their number doubled, and almost all of them are already occupied. The price is as follows: purchase – from 300 to 900 euros, rent – 4 euros per square meter.

Slovakia is one of the best countries for real estate investments

The liquidity of local real estate is high, the cost per square meter is attractive, the banking system is reliable, and ski resorts contribute to the influx of tourists.
The index of housing availability in Slovakia is 4.5% and the average yield, according to experts, is up to 5.5% depending on the location.
An office in Bratislava, the capital city, can be purchased for between 1000 and 4000 euros per square meter. On average, such properties generate 15.4% of the income per month.
As of 2019, about 2 million square metres of industrial space is available in Slovakia. Over 300,000 more are under construction. The yield from leasing a square meter in such premises is 4 euros per month, and you can buy it at an average price of 100 to 600 euros.
The overall assessment of the prospects for investment in real estate in Europe from experts is as follows: macroeconomic indicators of the states will remain favorable, and property prices in most of them should rise steadily.