If you believe that 2020 will be another exciting year for real estate investing, then you must do your homework from an early stage and find out what could be the best possible places to invest. I’m Ofir Eyal Bar and today I would like to talk about some of the top European real estate places that from my point of view, still have a high potential for growth this year. Please be aware that all the locations mentioned in the article had been found based on personal research and nothing written here can guarantee future real estate performance. Without further due, let jump into four of the top European spots to monitor this year.
European real estate in 2020
With access to the Black Sea, the Eastern European country is one that had gone under the radar of many real estate investors. Especially if we talk about cities like Batumi, there is plenty of growth potential, given the high interest of tourists. What’s important to notice is that the country does not have any height restrictions on new buildings, allowing real estate developers to maximize their opportunities in the region. The past two years had seen an increase in new home constructions, with more than 22,500 homes built solely in Batumi. Since the price per square foot is approximately $37, the majority of the buyers had come from overseas. There are plenty of investors from neighboring Turkey attracted by the region with more than 2,000-year history. Given there’s still potential for growth, the country is expected to be one of the top picks for real estate investors in 2020, as well. Favorable prices should be one of the main motivations to diversify away from developed areas.
We stay in Eastern Europe for our second place, since Hungary represents another country that should not be ignored. At the present time, economic prosperity and infrastructure projects continue to attract investors around the world. An upgrade to the rail link between Budapest and Székesfehérvár had generated strong real estate performance since 2018 when the home sales increased by more than 17%. Lake Balaton and Lake Velence are two of the most popular recreational spots in the area and because of that, it’s very likely the interest from real estate investors will continue this year. Hungary is a very rich country from a cultural point of view and tourists around the world continue to be attracted.
Moving towards the West, The Netherlands is expected to be a destination for investors wanting to avoid overcrowded real estate markets like France or Germany. The country capital – Amsterdam, and the second-largest city – Rotterdam, represent the ideal places to find new investment opportunities. Speaking of Rotterdam, it’s important to highlight that the “largest port in Europe” status is one of the main drivers of new real estate investments. In 2019 alone, prices have increased by approximately 10% and the average sales price had been around $295 per square foot. Some people call Rotterdam as the “Manhattan on the Maas”, highlighting the city’s status as a main European hub for trade. Although a very small country, as compared to other Western European names, The Netherlands is a place where people and businesses are very competitive and willing to constantly innovate.
Since the UK had left the European Union in 2016, France had become the main destination for real estate investors. Home prices in cities like Paris had soured since then, but we can still find plenty of opportunities in 2020. In particular, the city of Megeve should be one of the main areas to watch, given a few important factors.
Firstly, it’s the place where a stage of the Tour de France took place a few years ago. Second of all, interest had been surging over the past years mainly due to the city’s ski resort identity, as part of the Mont Blanc mountain range. In Megeve alone, buyers from Britain have increased by 10-15% during the past 12 months and those from Switzerland had accounted for more than 25% of sales. That number had increased from 20% in 2018, showing that the region still has growth potential.