Those are the Best European Country for a Real Estate Investment in 2024

The market in Europe is extremely dynamic and real estate is one of the most valuable assets in the world, making the investment decision consequential. What changed on the European real estate market this year? In which countries should you invest in 2024? Surprisingly, Latvia emerges as a strong investment contender today, with Ireland and Italy also showing considerable promise.
According to Evgeniy Kochman, real estate expert, there are many reasons, financially speaking, to invest in European property, as both a vacation home and potential long-term residence.
Kochman suggests that an investor should be focused on rental yield when choosing to invest, the most critical metric for properties right now. Given this metric, Latvia emerges as the best investment country.
But what is a good yield and how do you calculate it? In basic economic terms, higher yield means better return. The same applies for rent: rental yield compares the cash generated by a property as a percentage for the property price or market value.
AdvertisementA good investment depends heavily on property worth. A simple calculation might illustrate the phenomenon: let’s say you receive $30,000 each year in rent and your property is worth $500,000. Your gross rental yield is equal to $30,000 ÷ $500,000 X 100 = 6%.
Recently released data suggests that Latvia’s rental yield is 8.06%, earning it first place in this metric. Following Latvia are Ireland at 7.85% and Italy at 7.38%. The rental yields of the worst European countries to invest in, by comparison, are: Luxembourg at 2.67%, followed by Switzerland at 3.05% and Austria at 3.59%.[1]
A similar calculation demonstrates the best and worst rental yields of European cities. From a financial perspective, Dublin (with a rental yield of 7.33%), followed by Istanbul and Riga, is the most attractive European city to invest in. The city with the lowest rental yield, by comparison, is Oslo (at 2.46%), followed by Luxembourg and Zurich.
As with most things, good investing on the European property market comes down to a strategy. An investment property with a good rental yield, Mr. Kochman explains, might provide an investor a steady cash flow but may not have the best overall growth potential. In deciding where to invest, rental yield can be driven strongly by occupancy rates and location, where the ideal situation would be finding a high rental yield and a high occupancy rate. If one were to invest right now, it should be in Latvia.
1. Latvia – 8.06% 1. Luxembourg – 2.67%
2. Ireland – 7.85% 2. Switzerland – 3.05%
3. Italy – 7.38% 3. Austria – 3.59%
4. Romania – 6.63% 4. Malta – 3.66%
5. Lithuania – 6.44% 5. Germany – 3.74%
6. Turkey – 6.36% 6. Norway – 3.79%
7. United Kingdom – 6.21% 7. Czech Republic – 3.95%
8. Spain – 6.17% 8. Denmark – 4.16%
9. North Macedonia – 6.00% 9. Belgium – 4.20%
10. Montenegro – 5.95% 10. Finland – 4.24%
1. Dublin, Ireland – 7.33% 1. Oslo, Norway – 2.46%
2. Istanbul, Turkey – 6.63% 2. Luxembourg – 2.71%
3. Riga, Latvia – 6.46% 3. Zurich, Switzerland – 2.79%
4. Bucharest, Romania – 6.36% 4. Vienna, Austria – 3.64%
5. Podgorica, Montenegro – 5.7% 5. Valletta, Malta – 3.67%
6. Lisbon, Portugal – 5.65% 6. Helsinki, Finland – 3.8%
7. London, UK – 5.59% 7. Berlin, Germany – 3.83%
8. Brussels, Belgium – 5.54% 8. Sofia, Bulgaria – 4.04%
9. Warsaw, Poland – 5.51% 9. Prague, Czech Republic – 4.05%
10. Vilnius, Lithuania – 5.47% 10. Bratislava, Slovak Republic – 4.11%
Sources:
“Rental Yields in European Cities.” Global Property Guide. Last updated June 2024.
“Europe’s best and worst property markets: Where to invest in 2024?” Euronews. May 20, 2024.
[1] These and all the following percentages were published in a Euronews article entitled “Europe’s best and worst property markets: Where to invest in 2024?” May 20, 2024. See, also, Global Property Guide”s “Rental Yields in European Cities,” last updated June 2024.
Photo by Brian Babb on Unsplash
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