A smart property investor should be prepared to broaden their horizons if they are going to get the most value from their portfolio. Just a short hop across the Channel in mainland Europe lies a continent ripe with investment potential.
Here’s our guide to five European locations where there is a great opportunity to get a good return from you’re investment…
Paris
If there’s one place on the continent that can rival the glamour and lasting appeal of London, it’s Paris. A city of culture, culinary delights and romance, the French capital attracts investors from across the globe. Taxes may have risen in recent years but there is still a chance to earn good returns in Paris. Knight Frank pinpointed the classy 16th arrondissement as one of its ten worldwide markets to watch being a ‘safe but buzzing’ part of the city with good quality properties and scope for growth.
Berlin
Amid the post-recession trials and tribulations that have befallen the Euro, Germany has continued to stand strong as the economic heart of Europe. Berlin, once the divided symbol of the Cold War era, now thrives as the cosmopolitan capital of the country, a symbol of a very different, dynamic Germany. Its continued growth is fuelled by construction projects that deliver a fresh supply of top quality properties to cater for the big demand as well as new infrastructure. New apartments shot up in value by 79 per cent between 2007 and 2014 and that growth only looks set to continue.
San Sebastián
San Sebastián, in Spain’s Basque country, is set for a big boost as it shares the European City Of Culture duties in 2016. Set in the attractive Bay of Biscay, the city already attracts visitors with its annual film festival and the investment likely to be attracted next year will only add to its appeal. The strength of the Pound against the Euro, and the fact that prices are still down in the Basque Country thanks to a slow-recovering Spanish property market, suggests there is a big opportunity for good returns here.
Geneva
Some investors might prefer to steer clear of the Euro for the time being – with questions still left unresolved about the future of the currency union. Geneva, in Switzerland, might just be the ideal location to invest on the mainland while staying outside of the Eurozone. With strong, continued tourist interest, favourable tax rules and a good line in high-end properties there is much to attract investors to Geneva.
Gothenburg
Sweden has long fascinated Brits – whether it’s the flat-pack furniture, the music or the dark detective dramas – but its strong and stable political system, coupled with excellent returns from an in-demand rental market make this well worth exploring for a property investment. Gothenburg, a city of ambitious growth, has the ideal mix of properties to make the most of this strength. Any sceptics should research the experience of Welsh farmers Nigel Evans and Brian Ridge, who benefit from a 12%-a-year return on their Swedish portfolio.
The economic conditions in each of the five locations above are favourable for investment. The trick now is to scour through property listings to find the best homes that can make use of such conditions.
