Europe’s Property Market: 28 Best Cities to Invest

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The outlook for Europe’s property market is looking good, in light of the UK’s exit from the European Union. Many UK based businesses are expected to open offices in other European countries in order to continue to have easy access to the Single Market. This development makes the prospect of buying a property in Europe attractive. The problem is how to decide which European city to invest in, because while some property markets are likely to favour investors, not all of them will be good investments.

It is important to note that there are a plethora of factors that can affect the attractiveness of the property market of a city, but a single event may significantly increase the advantage of investing in one city/country over others. For instance, the election of Donald Trump as the president of the United States seems to be having an effect on the US property market. Ray, a Maple Ridge Real Estate agent says, “the US is increasingly becoming a good place to invest. Trump’s election may actually have done the real estate market a lot of good”. So while monitoring the economic trends of a market, remember to factor in the macro factors too.

If you are looking to invest in the European property market, here are some fundamental questions you’ll need to ask, when deciding the right place to invest:

Is the Population growing?

Ideally when buying a property, you want to buy a property that will increase in value overtime. If the population of the city is shrinking then this could be a problem, because you have a shrinking pool of potential tenants. A shrinking population is also a good indicator for a weakening economy

It would be beneficial to pick a city with a growing population, especially when the population growth in caused by a net positive migration into the city.Is the Economy growing?

To determine how big the economy of a city is you will need to look at the Gross Domestic Product of the city. However, it is not so much about the size of the economy, but rather, it is about how fast the economy is growing. The higher the rate of growth, the healthier the economy is. A city with GDP growth that exceed the European average and a high GDP per capita would be a good choice.

Is the Unemployment rate declining?

If people don’t have jobs, they can’t pay much rent. So, when looking for a property market, pick one where the unemployment rate is declining faster than the European average.

These are just some of the factors you should consider to narrow down the pool of cities that are worth investing in. You will still need to carry out a more thorough research and assessment before deciding on a city and a property to invest in.

Generally speaking, you should not invest in properties if you are looking to make some quick cash. However, if you are willing to park your money and watch it grow in the long-term then you should seriously consider investing in the European property market.

So, which are the best cities in Europe for property investors. The Telegraph ran the numbers and this is what they found.

1.    Berlin

2.    Hamburg

3.    Dublin

4.    Madrid

5.    Copenhagen

6.    Birmingham

7.    Lisbon

8.    Milan

9.   Amsterdam

10. Munich

11. Stockholm

12. Barcelona

13. Budapest

14. Istanbul

15. London

16. Helsinki

17. Warsaw

18. Edinburgh

19. Prague

20. Frankfurt

21. Brussels

22. Paris

23. Vienna

24. Zurich

25. Rome

26. Lyon

27. Athens

28. Moscow


Further reading - Berlin Berlin Why Investors Need To Shout About The German Investment Capital

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