Which Countries Have Property Prices Increased The Most Over The Past 10 Years
If we compare the price per square meter in 2010 and 2020, we find that the price per square meter rose by more than 100% in seven countries. And only in four European countries have property prices fallen — Norway, the Czech Republic, Belgium and Greece.
Author •Elena Ruda
Chief Development Officer at Immigrant Invest
Which Countries Have Property Prices Increased The Most Over The Past 10 Years
Mortgage lending experts at UK online portal money.co.uk have analyzed the dynamics of property prices in 30 countries. To do so, they compared the average price per square meter of property in 2010 and 2020. The increase in value is expressed as a percentage.
For convenience, prices in the tables are presented in euros.
The 10 countries with the biggest increases in property prices over the last 10 years
Country
Price per square meter in 2010
Price per square meter in 2020
Increase in value
Israel
€1,817
€8,096
+345,7%
Switzerland
€3,740
€9,932
+165,5%
Germany
€2,083
€5,459
+162%
USA
€1,264
€3,203
+153,3%
Hungary
€980
€2,331
+137,8%
Slovakia
€1,166
€2,470
+111,8%
France
€4,047
€8,113
+100,5%
Portugal
€1,437
€2,679
+86,5%
Japan
€3,785
€6,627
+75,1%
UK
€2,889
€ 5,052
+74,9%
Israel showed the biggest increase in real estate prices: the cost per square meter in the country has risen by 345,7% over the last 10 years.
The most expensive housing is in Tel Aviv, where a house costs on average from €440,000. Standard housing in Jerusalem will cost from €335,000. The cheapest apartments can be bought in Haifa: a two-bedroom flat will cost from €57,000.
The rise in prices in Israel is due to the high demand and availability of mortgages. Interest rates on mortgages range from 2 to 4%, depending on the nationality and earnings of the buyer. At the same time, there are fewer offers on the property market than those wishing to purchase properties in the country, which also increases property values.
Switzerland has the second-highest property price growth rate. The average price per square meter for an apartment in the center of Zurich is €15,500. In the popular ski resorts, prices are even higher: in Gstaad, a square meter can cost up to €45,000.
Property prices in Switzerland are on the rise due to high demand from residents and foreign investors. However, there are restrictions on the purchase of real estate for foreign buyers. For example, a foreigner cannot own a property larger than 200 square meters.
Germany. The increase in property prices in Germany is underpinned by a stable economy. Property values in the country have risen even during the pandemic: in 2020, prices have risen by 11,42%.
Munich has the most expensive real estate: the average price per square meter is €8,936. In Berlin, a square meter costs around €5,500, and in Leipzig and Dresden around €3,600.
In the US, the average cost of a single-family home is $357,000, or €305,000. The most expensive homes are in California: San Jose, San Francisco and San Diego. Over the past five years, houses in the country have sold out at a record rate of one month from the time the property was put up for sale.
Real estate in Hungary was one of the most inexpensive in the EU in 2010. The situation has changed in 10 years, also due to high inflation in the country, with an average of 2,56% per year.
In 2021, the average price per square meter of an apartment in Budapest will be around €3,000, and in the resort of Hévíz it will be €1,182.
In Slovakia, low mortgage rates of 1.8 to 2,5% per annum have contributed to the price increase. At the same time, construction rates are not covering the demand for housing.
In France, secondary housing prices are rising rapidly. For example, between January and March 2021 the price per square meter rose by an average of 5,9%.
Portugal is attracting foreign investors: in Lisbon alone, the proportion of foreign property buyers is around 40%.
Japan is one of the most densely populated countries in the world, and houses here are built with special technology because of high seismic activity. That’s why property prices are on the rise, despite the country’s declining purchasing power.
The UK is a sought-after destination for foreign investors who prefer to buy prestigious properties priced from £200,000 upwards. The government also periodically introduces tax breaks for property buyers, which also leads to an increase in demand and property prices.
Tel Aviv, Israel. Israeli government plans to add 300,000 new residential properties across the country in the next five years
How much property prices have risen in countries that issue residence permits by investment
In the five countries analyzed, investors can buy real estate and obtain a temporary residence permit. The property must be owned for at least five years, after which it can be sold. In this way, the investor returns the money invested at a profit, earning on the price difference.
Greece is the only country with a residence permit by investment program where property prices have fallen over the last ten years. But since 2018, things have started to change and prices have started to rise. It is therefore a good time to buy more attractive properties that will increase in value in the coming years.
How property prices have changed in countries with residence permits by investment
Country
Price per square meter in 2010
Price per square meter in 2020
Increase in value
Switzerland
€3,740
€9,932
+165,5%
Portugal
€1,437
€2,679
+86,5%
Austria
€3,240
€4,376
+35,1%
Spain
€2,550
€3,012
+18,1%
Greece
€2,071
€1,702
‑17,9%
A residence permit in Switzerland is granted to people who are financially independent. The investor enters into an agreement with the canton to which he or she intends to move. You must live in the country for at least 183 days a year and pay an annual chord tax of about ₣ 450,000. A registration address in the country is compulsory in order to obtain a residence permit.
A residence permit in Portugal is granted by purchasing a property, residential or commercial, for an amount of €500,000 or more. If the property needs renovation, the amount of the transaction is reduced to €350,000. One or more properties may be purchased.
But from 2022 the conditions for buying property to obtain a residence permit will change. Investors will be banned from purchasing properties in Lisbon, Porto and resort towns.
Austria grants residence permits to financially independent persons. Living in the country is compulsory, as is having a home in the country. The size of the property purchased or rented is taken into account. For example, a family of four needs at least 80 m² of living space.
Residence permits in Spain are granted to investors who buy one or more properties with a total value of €500,000 or more.
In Greece, a residence permit can be obtained by investing €250,000 or more in real estate. It is allowed to buy residential or commercial property for five years, building plots, and to rent hotel properties or apartments in resort complexes for 10 years.
Examples of properties in Greece
Greece, Athens
€376,000 — €447,000
Hotel apartments in the historical center of Athens
47 m² — 97 m²
1 
1 
Greece, Athens
€741,000 — €1,423,000
Apartments in a closed residential complex near the sea, Alimos, Athens86 m² — 153 m²1—3 2—3 
Greece, Chania
€290,000 — €380,000
Apartments and villas in a quiet area by the sea in Crete64 m² — 112 m²2—3 2 Immigrant Invest helps investors choose properties to buy and obtain a residence permit. If you want to become a resident of an EU country, seek advice from experts in investment programs.