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Top Five Property Hotspots Outside of the UK

Where are the best places in Europe to invest in property? Cogress analyses the markets in five countries.

Aerial view of Fortress Vila Vella and Badia de Tossa bay at summer in Tossa de Mar on Costa Brava, Catalunya, Spain

Cogress recently looked at the Top Five Property Hotspots in the UK, which were based outside of London.

This time, we’ve decided to analyse the international market, to determine a list of five property hotspots that are outside of the UK altogether, but within the continent of Europe.

The list includes countries that are on the road to recovery, as well as those that have never really been considered magnets for property investors.

If you’re a British investor looking at international opportunities, then it’s worth considering the following markets.

Turkey

According to the Organisation for Economic Development (OECD), which measures property markets around the world on an annual basis, Turkey enjoyed a bigger increase in property prices than any other country in Europe (up 18.94 percent) last year.*

It was followed by Hong Kong and New Zealand, with 16.72 percent and 12.63 percent growth respectively, but Turkey also stood out as a country that is likely to grow even further. It has an increasing population, a sliding supply due to a lack of construction projects, and an existing high level of foreign investment.

*Between Q3 2014 and Q3 2015.

Sweden

Sweden falls fourth on the aforementioned list of nations with the biggest price increase. And like Turkey, experts are expecting the market here to grow even further in the coming months and years.

Kate Everett-Allen, speaking to the Telegraph, said: “Here we are seeing strong demand for properties and the economy is growing and confident.”

One of the reasons for this is the restrictive planning regimes in Sweden, particularly in the capital city of Stockholm. It is difficult for new construction projects to get underway, and so the supply of good properties remains quite low.

With relatively high demand, prices are expected to increase.

Norway

Fellow Scandinavians Norway also make the list, for very similar reasons. Things aren’t quite as positive as in neighbouring Sweden, with annual growth of just 6.09 percent. But this is certainly a move in the right direction, and by all accounts this should continue to improve in the near future.

A report from MSCI, which describes itself as “a leading provider of investment decision support tools

Worldwide”, shows an 11 percent return on investment in 2015 for Norwegian property, with sub-sector returns varying between 10.2 percent and 16.5 percent.

Portugal

Portugal was one of the countries that suffered most from the global economic crisis in 2008, for which it is still feeling the effects of today. However, while there has not been a full recovery, certain markets are certainly showing signs of improvement – including property.

Growth in average prices is only at 0.97 percent, but when compared to other countries who suffered greatly in 2008, such as Greece (down 4.95 percent year-on-year), things are looking ok. For the moment, property prices are very, very low – so now might be a good opportunity before things improve further.

Spain

Similar to its neighbour, Spain also suffered amid the global recession. Property prices are increasing at a slightly faster rate of 1.2 percent, and are expected to steadily rise even more so. However, relatively low demand for property in the country could prove to be a challenge.

Spain also happens to be the nation with the ‘most undervalued’ property, according to OECD. Properties are, on average, undervalued by approximately 25 percent. As with Portugal, this could be a good opportunity to get in on now – as experts will predict this will only get better.

For more investment news, analysis and discussion – check out the Cogress blog.

Always seek independent advice. This blog has not been approved as a financial promotion by Cogress Limited. We are not responsible for the content of external websites. Potential investors must rely on their own due diligence prior to investing.

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2017-06-02T17:56:57+00:00