England or Scotland, Germany or France - Still don't know how to choose a country for investment? It's as easy as pie! You just need to know what opportunities are available in it yield. Calculating this indicator is quite simple, but the catch is that there are 44 countries in Europe and you will get tired of studying the real estate market of each of them. Therefore, we decided to delegate this task to professionals, and we have prepared the results of their work for you. In the cover image, you can see a small spoiler for the most observant ;)
Profitability is soaring sky high
Returning invested funds through renting can take a lot of time, so only the most patient investors decide to manage their real estate in this way. However, this method of generating profit is one of the most reliable because under any circumstances you still have a significant capital in the form of an apartment. The leaders of our current rating pleasantly surprise because by renting out real estate in these countries, you can completely recoup your investment and start earning new money in just 14, 13, or even 12 years.
Real estate market analysis for the first quarter of 2024. Global Property Guide shows us the following top ten leaders:
- Latvia - 8.06%;
- Ireland - 7.85%;
- Italy - 7.38%;
- Romania - 6.63%;
- Lithuania - 6.44%;
- Turkey - 6.36%;
- United Kingdom - 6.21%;
- Spain - 6.17%;
- North Macedonia - 6.00%;
- Montenegro - 5.95%.
As for the cities, Portugal and Poland were able to break into the top positions, which are not prominently featured in the main list:
- Dublin (Ireland) - 7.33%;
- Istanbul (Turkey) - 6.63%;
- Riga (Latvia) - 6.46%;
- Bucharest (Romania) - 6.36%;
- Podgorica (Montenegro) - 5.7%;
- Lisbon (Portugal) - 5.65%;
- London (United Kingdom) - 5.59%;
- Brussels (Belgium) - 5.54%;
- Warsaw (Poland) - 5.51%;
- Vilnius (Lithuania) - 5.47%.
Ireland ranks first in two ratings, so we advise you to think about it. Perhaps this country will bring you a nice pot of gold, if not from a leprechaun, then at least from real estate.
Profit is like water in the desert - rare, but so joyful.
Ten countries with the lowest rental yields include many tourist favorites and states known for their reliability and high level of happiness among the population. So, what explains these figures? Perhaps property owners are satisfied enough with their peaceful lives and do not want to spoil it for others with sky-high prices. These kind-hearted or simply not the most successful businessmen live in the following countries:
- Luxembourg - 2.67%;
- Switzerland - 3.05%;
- Austria - 3.59%;
- Malta - 3.66%;
- Germany - 3.74%;
- Norway - 3.79%;
- Czech Republic - 3.95%;
- Denmark - 4.16%;
- Belgium - 4.20%;
- Finland - 4.24%.
Luxembourg's yield is even shocking to locals. It will take about 40 years to recoup the invested capital. Are you willing to wait that long? A not much better situation is observed in the capitals of Bulgaria and the Slovak Republic, as well as in the countries already considered:
- Oslo (Norway) - 2.46%;
- Luxembourg (Luxembourg) - 2.71%;
- Zurich (Switzerland) - 2.79%;
- Vienna (Austria) - 3.64%;
- Valletta (Malta) - 3.67%;
- Helsinki (Finland) - 3.8%;
- Berlin (Germany) - 3.83%;
- Sofia (Bulgaria) - 4.04%;
- Prague (Czech Republic) - 4.05%;
- Bratislava (Slovak Republic) - 4.11%.
In Oslo, it is possible to earn a little more from rent only during the Nobel Prize period. During the rest of the time, landlords have to patiently wait for their investment to pay off, as only then will the coveted square meters be profitable. It turns out to be an investment with benefits for future generations.