Rental values in the region have risen steadily since 2010, even in the face of a protracted crisis and pandemic.
Rental prices have risen in 25 EU countries. Particularly high prices have risen in Estonia (142%), Lithuania (109%) and Norway (68%).
In Cyprus and Greece prices have decreased - 3% and 25% respectively.
The average rental price for a three-bedroom apartment with three bedrooms in 2021 is €1,600 per month. At the same time in Estonia, which has seen the highest increase in rental prices, to pay for such apartments will be about €900. And in Greece, where prices have fallen, it is €720.
Buying prices are rising faster than rents
In 2010 and 2011 the property sales market and the rental market grew and developed in parallel. In 2011, the property sales market was affected by the European debt crisis. The house price index turned negative and reached -4% in 2012.
By 2015, the situation had stabilised: EU housing purchase prices had started to rise. The growth is stable and continues. In 2020, the house price index was +4.6%.
Over the past 10 years, property purchase prices have risen twice as fast as rental prices. If we compare housing prices in 2010 with those in June 2021, the difference is +34.4%.
Property prices have risen the most in Iceland and Estonia. And in Spain, Greece and Cyprus, housing prices have fallen.
Unlike the property purchase market, the rental market was not affected by the 2010 crisis.
Source: Eurostat, 2021
Rental and purchase property prices have fallen in 10 years in only four countries - Spain, Cyprus, Italy and Greece
Source: Eurostat, 2021
How the price of renting and buying housing has changed in countries with investment programmes
In Austria, Portugal and Malta, the cost of renting and buying property has also increased. For investors, this means they are buying a liquid asset and will be able to recoup their investment.
In Austria, it is difficult to buy a house: you have to live in the country for at least three years. In Malta and Portugal, foreigners buy property on the same terms as locals.
Increase in housing rental and purchase prices over 10 years in countries with investment programmes
| Country | Price changes between 2010 and the second quarter of 2021 | |
|---|---|---|
| Rent | Purchase | |
| Austria | +48% | +96% |
| Portugal | +23% | +51% |
| Malta | +20% | +48% |
| Spain | +4% | +2% |
| Cyprus | -3% | -8% |
| Greece | -25% | -28% |
Together with the purchase of property in Malta and Portugal, foreigners can obtain a residence permit for themselves and family members. To do so, you must become a participant in an investment programme.
To obtain a residence permit in Malta, an investor must choose a property worth at least €220,000, for a permanent residence permit at least €300,000. In order to obtain a "golden visa" in Portugal, at least €350,000 must be invested.
Real estate can be rented out: rental income for apartments in Portugal ranges from 2 to 5% per annum in the high season - up to 9%. Returns on properties in Malta range from 3 to 6%.
Investments in real estate can be fully repaid in 5 years or sooner.
Properties can be rented out: rental yields for apartments in Portugal range from 2 to 5% per annum, up to 9% in high season. Returns on properties in Malta range from 3 to 6%.
Investments in real estate can be fully repaid in 5 years or sooner.
Apartments in Malta value from €740,000. Yield - from 4 to 6% per annum
Share in a hotel in Portugal worth from €280,000
Two-bedroom apartment in Athens price from €266,000
Immigrant Invest is a licensed agent for investment programmes in European countries. If you want to buy a property and travel freely within the Schengen area, seek advice from experts in investment programmes.
