September 25, 2021
With vaccination efforts bearing fruit and countries around the world opening up their economies, more people are starting to think about foreign real estate investments. The lack of outside investors has been difficult for many markets around Europe, but experts believe that the easing of restrictions on international travel will help revitalise them.
This might be good news for some investors, but it also means that inventories may start drying up in certain prime markets, as we’re already beginning to see in places like Provence and the South of France. For those looking for hidden gems before travel fully reopens, here are some of the best locations in Europe to invest in luxury real estate.
France’s real estate market has been extremely resilient during the pandemic, and we can expect it to be one of the first to fully bounce back once restrictions are fully lifted. Paris’s real estate market has been an anomaly among major international cities. Property costs were on a steady rise in 2020 with older apartments going for as much as €10,460 per square metre in the first quarter.
Some of the areas that are the most sought after in the city include Le Marais in the 4th Arrondissement, The Golden Triangle, the Left Bank, and the 18 and 17th Arrondissements close to Monceau Park.
The French Riviera always was and remains a prime destination for luxury real estate investors. Prices for luxury villas on the French Riviera range from €500k to €80million. One area that is getting a lot of attention at the moment is the quaint medieval town of Mougins, which is about 15 minutes away from Cannes. Other areas to watch include Villefranche-sur-Mer, Mont Boron, and Saint-Jean-Cap-Ferrat, just to name a few.
We can't speak of the French real estate market without speaking about the Alps and its ski resorts. These present lots of opportunities either for rentals or for those who want a place to stay during ski trips. In either case, it would be wise to go for a property that is close to a major airport.
One option would be to look for properties near the Swiss border and Geneva Airport, which sees over 18 million passengers each year. The airport is served by flights from virtually every part of the UK and all of London's airports. It can also be reached directly from Dubai, New York, and Moscow.
Portugal remains one of the best places to buy luxury real estate. What makes Portugal so great for real estate investors is the different tax and property schemes the country offers. The Resident Permit Program (also known as the "golden visa") allows non-EU residents to get resident status on condition that they invest at least €500,000 in a Portuguese property or buy one worth at least €350,000 and older than 30 years in one of the country's urban regeneration areas.
If you're looking for the best of the best, then you have to go to Comporta. Some people have gone as far as calling it the "Hamptons of Portugal". The Telegraph also called it the chicest beach in the country because of the many jetsetters it attracts. Christian Louboutin, Madonna, and architect Philip Starck all own property in the area.
Homes around Comporta can cost anywhere from €500,000 (US$561,000) to €10 million. Luxury home rentals can fetch as much as €3,750 per night.
Spain is the most popular destination for British expats living in Europe. Out of all the 1.3 million Brits living in the EU, about 300,000 live in Spain.
There is no shortage of great luxury houses all around the country. Barcelona has made a lot of effort to bring UK real estate investors back to the city, starting with the inauguration of the first London Day in the Catalan capital back in 2019. But the best place in the country to hunt for luxury real estate at the moment is Valencia, which is located on the country’s eastern coast.
This is an especially great area for people who were looking to buy luxury property they could rent out. While the area attracts a lot of tourists, it also attracts a good number of families looking for large luxury homes with multiple bedrooms. Districts like Cabanyal-Canyamelar, Malvarossa, and Patacona are all seeing an increase in demand, and property prices are rising fast.
Luxembourg also deserves a spot on this list. The tiny country saw the biggest rise in real estate prices in 2021. Luxembourg sits near the top of the Knight Frank Global House Price Index; it came in third for Q1 and Q3 and second for Q2. Q3 saw a 13.4% year after year increase in property prices.
These are in our opinion the top four destinations in Europe to invest in luxury real estate. These are great whether you’re looking for a secondary home, somewhere to relocate, rental revenue, or to invest as a speculator.