Southern Europe Real Estate : Where to buy

International Finance magazine recently interviewed La Vida’s CEO, Paul Williams for their article  ”Is There Value in South European Real Estate?”.

The article looks at the positive effects the Golden Visa programmes have had on the real estate market, particularly in Spain, Greece and Portugal. Since the 2008 financial crisis in Europe, the Golden Visa residency programmes have attracted a huge amount of foreign investment, helping these countries economies recover following the crash. The key points of the article are:

Spain

Despite property prices slowing down in some major Spanish cities this year, overall house prices grew by 5.3% in June 2019 year-on-year. Madrid and Barcelona have always been the top investment destination for investors but Málaga and Valencia have also become very popular in the last three years. Rental returns in Barcelona generate an average return of 5% p.a. In 2019, 11 years after the financial crash, Spain’s property prices are still below their peak, which means there is still plenty of room for capital appreciation.

Greece

Property prices have increased by 11.1% year-on-year in Athens and rental yields stand at roughly 4.2% for apartments. During the credit crisis, Greece’s property prices fell by 42% but the  demand for properties in Greece has soared in recent years with a 25% growth in 2019, compared to the previous year. Regions such as Santorini, Glyfada and Mykonos are also popular destinations and attract a lot of real estate investors from the US.

Portugal

Property prices in Portugal are on the rise. In Q3 of 2019, property prices in Portugal increased by 7.92% year-on-year. According to reports, seven years after introducing the Golden Visa programme, Portugal has become the Eurozone’s hottest property market ahead of Spain. House prices are still comparatively low compared to other European cities such as Paris, London, Amsterdam and Madrid. Rental yields in Lisbon, range from 4.5% – 6.7%. With the growth of tourism and rental platforms like Airbnb, the short-term rental market has become increasingly popular with investors, allowing owners to enjoy higher rental yields and increased flexibility.

For the full report, please see the online publication.