Many people now consider Germany as one of the best countries to invest in for 2019. In fact, major cities like Berlin, Hamburg, Frankfurt, and Munich are making the top-ten lists of best places to invest in real estate. Rents in all four cities will likely increase between 6-7% by 2020.
An investor has the possibility to either invest in very expensive property in established European markets – but it is a secured investment at a low return – or to invest in those markets where prices have fallen but are recovering. Investors who are willing to take a bit more risk could have a higher return but not without taking a gamble.
Elsewhere in Europe, there are areas in the north, south, east, and central that are up and coming and represent good opportunities for investors willing to take more of a risk. In Italy, both Milan and Rome are recovering from uncertainty and are seeing growth driven by huge national investment. Spain, too, is on the up after a shaky period. Both Madrid and Barcelona have witnessed a decline in vacancies and an increase in prime rents. In the Netherlands, rents are rising higher than expected in cities such as Amsterdam and Rotterdam; this is likely to continue.
Further north in the continent, Sweden is definitely one to keep an eye on. GDP grew by 2.7% in 2018 and there was a 17% increase in investment. Real estate investors can look to take advantage of low interest rates to invest in property in cities such as Stockholm.
Several cities in central and eastern Europe are also worth a look. Prague in the Czech Republic has undergone something of a commercial property boom in the last two years. Across the border in Poland, there has been development taking place in Warsaw; this has caught the attention of eagle-eyed investors. Another city seemingly on the verge of a boom is Bucharest, Romania.