The Property Banks Top 20 Overseas Property Investment Countries
| No 20 CYPRUS | |
|
First on the list at number 20 is Cyprus, most
eastern island in the Mediterranean and former
British colony. The British are far the most
numerous foreign visitors and many of us are
buying homes there. Since joining the EU in
2004, Cyprus has seen healthy growth in its
property market but the average price is still
only around the £100,000 mark.
188% return |
 |
| No 19 SPAIN | |
|
Long-time
favourite of us Brits, the most popular European destination
for holidaymakers has seen a veritable boom over the last 15
years. Prospects for the future in many areas are not as
bright as they may have been in the past, however
respectable growth is still on the cards for new investors
to this well-established market. Party town Valencia is currently on the receiving end of huge investment leading it up to the America’s Cup yacht race in 2007. A nice city centre apartment could set you back £130,000 now, but prices are heading rapidly northwards. 189% return |
 |
| No 18 ITALY | |
|
Many parts of
Italy such as Tuscany and Liguria are no longer the bargains
they once were, however the island of Sicily boasts prices
that are around 25% cheaper than mainland Italy. On the
mainland, £20,000 renovations can still be found on the
Adriatic coast of Abruzzo and the average across the country
is £130,000. 199% return |
 |
| No 17 FRANCE | |
|
Around half a
million Brits are thought to own property in our second
favourite holiday destination in Europe. Undiscovered bits
of this tried-and-tested country are becoming harder to
find, but it’s worth checking out Pau in the South-west –
equidistant from ski-slopes and sandy beaches, it’s
perfectly positioned. Recent improvements in road and air
infrastructure means that it won’t stay undiscovered for
very long though. Renting properties in France has become
more tricky in recent years due to the competitiveness of
the holiday rental market. You’ll make an unexciting 5% per
year, but property price increases over the longer term look
set to be more impressive. 201% return |
 |
| No 16 NETHERLANDS | |
|
The most
densely populated country in Europe lived in by its tallest
people Holland experienced something of a boom in the late
90s but there is still money to be made. Average prices in
Amsterdam are around £135,000 for a studio and country-wide
the average is £150,000. 208% return |
 |
| No 15 AUSTRIA | |
| Home of Mozart, apple
strudel, Arnold Schwarzneggar and the seat of the Hapsburg
Empire, Austria comes in at 16. Average prices are just over
£130,000 and in some ski areas you can pick up a one-bed
apartment for £185,000. 211% return |
 |
| No 14 IRELAND | |
| Ireland is the country
with the highest home-ownership in the EU at 83%. House
prices here have been fuelled enormously by EU membership in
1997 and have almost quadrupled in eight years. But this
surging demand has not abated and, whilst you’ll have to
spend more to get your property in the first place (average
prices are around £170,000), you could still more than
treble your money in 10 years. 222% return |
 |
| No 13 CZECH REPUBLIC | |
| As a non-Czech
citizen, it was previously very difficult to buy here.
However, accession to the EU in 2004 has brought changes
that paved the way for foreign nationals to invest in
property. And they are in their thousands. This country is
experiencing massive increases in tourism (Prague has become
the stag-do capital of Europe!) and 20 UK airports fly
direct to Prague. Unilever, Shell and Tesco are all
investing heavily here, taxes are being reduced and locals
are being allowed to borrow money at ludicrously low rates
(2%) through government subsidy. The government’s
statistical office predicts that demand for property will
outstrip supply for years and years to come. Average
property price is £45,000. 260% return |
 |
| No 12 GERMANY | |
| Germany has the lowest
rate of home ownership in the entire continent at around
40%. Most people rent their houses, mainly due to the
inavailability of mortgage funding. As a result prices have
been stagnating or even falling for 10 years. This is all
set to change with more flexible mortgage lending and access
to finance which is likely to bring prices in line with
other major EU economies. The situation has been compared
to the UK just before Margaret Thatcher enabled people to
buy their council houses. The UK property map for the last
twenty years could well be mirrored in Germany. People are
buying whole apartment blocks in Berlin for less than EUR1m
which will be sold in time as individual units and the
possibilities for making cash are considerable. 261% return |
 |
| No 11 LUXEMBOURG | |
| Luxembourg has the
highest number of Michelin starred restaurants per person
and is the most expensive place to buy property in the whole
of the EU. In spite of the hefty price tag, prospects are
looking good for the future. This tax haven has the highest
income per person in the world and demand for property is as
strong as ever. Return 263% |
 |
| No 10 HUNGARY | |
| Hungary is seeing some
of the highest private foreign investment being poured into
its borders. International companies are fighting each other
off to set up their European hubs here. Budapest has been
dubbed ‘the Paris of Central Europe’ and has proved a great
city for investment over the past three years. A huge
new-build programme is underway and apartment renovation
projects in central locations can still be snapped up for
£30-40,000. 269% return |
 |
| No 9 FINLAND | |
| A land of 188,000
lakes, 186,000 reindeer and more blondes per capita than
anywhere else on earth. Average property prices are only
around £100,000 which, when compared with wages, is pretty
low for Europe – another country with great rental
potential. 273% return |
 |
| No 8 SLOVENIA | |
| Slovenia is a diverse
destination of natural beauty. Half the size of Switzerland,
it has skiing and lake resorts as well as one of the coolest
capitals in Europe, Ljubljana. Since EU integration, prices
have risen but compare very favourably with neighbouring
Italy and Croatia. A small house will only cost you around
£25,000 and the average is only £45,000. 278% return |
 |
| No 7 SLOVAKIA | |
| According to the EU
Slovakia has the fastest growing economy in Central Europe.
This newly joined EU member has a huge shortage of
properties, meaning the existing ones are soaring in value.
The old town of Bratislava (dubbed a mini-Prague) is ripe
for investment and rural properties are going for a song -
£35,000 will buy you a new chalet in the mountains. 326% return |
 |
| No 6 BELGIUM | |
| The capital of Europe
with the highest consumers of chocolate in the world (an
amazing 16kg per person per year!), comes in at number six.
Property prices are among the lowest in Western Europe (when
compared with wages) with average houses going for £70,000.
The rental yields are strong at 7% due to low local property
ownership. 340% return |
 |
| No5 SWEDEN | |
| Dotted with lakes and
forests Sweden is the biggest country in Scandinavia,
however it is one of the least populated places in Europe.
It's also one of the cheapest: on average property is just
over £50,000. 352% return |
 |
| No 4 THE BALTIC STATES | |
| The Baltic States of
Estonia, Latvia and Lithuania are located in northeast
Europe on the Baltic Sea, neighbouring Belarus and Russia.
Old towns of these countries’ capitals (Tallinn, Riga and
Vilnius) are seeing huge interest from foreign buyers. All
three states joined the EU in 2004 and property prices have
been booming for several years as rental investors pile in
and local wages increase leading to increased ownership.
Estonia is Europe’s fastest-growing tourist destination with
both Easyjet and Ryanair links to the UK. These countries
all have a low flat-taxation regime. 356% return |
 |
| No 3 PORTUGAL | |
| Portugal is one of the
cheapest places in the EU to live (a three course meal with
wine for two costs around ten pounds!) The country is
recovering from a recession but has shown strong property
growth for a couple of years now. The Silver Coast is still
relatively undiscovered but has cheap flights to the UK and
a 4-bed habitable period house will only set you back around
£90,000. 360% return |
 |
| No 2 POLAND | |
| Poland is one of the
wettest countries in Europe, but it is also the one with the
best prospects of all current EU members. Huge numbers of
international companies, such as Tesco and GSK, are setting
up here and the country is set to get the lion’s share of EU
funding over the next eight years – up to EUR70 billion. 393% return |
 |
| No1 ROMANIA | |
| As an applicant
country to the EU Romania has extremely good economic
prospects. Historically, applicant countries’ property
prices rise strongly up to and through integration.
Currently a house to renovate in the countryside can be
snapped up for as little as £5,000. Massive regeneration
and infrastructural investment is predicted in this eastern
European neighbour which, when underway, look set to provide
property investors with massive returns. 414% return |
 |