As we are halfway through 2024, the European real estate market continues to offer attractive opportunities for
investors seeking strong capital growth and robust rental income. Below is a detailed overview of some of the
best-performing countries and cities, complete with the latest statistics on capital appreciation and rental yields.
Portugal
- Capital Appreciation: Lisbon’s property market has seen an impressive 8-10% annual price increase in recent years,
with similar trends in Porto. - Rental Yield: The average gross rental yield in Lisbon is around 5-6%, with some high-demand areas reaching up to
7% due to the thriving tourism and expatriate markets.
Spain
- Capital Appreciation: Madrid and Barcelona continue to grow, with annual price increases of 5-7%. Valencia and
Malaga are also on the rise, with capital growth rates of around 6% - Rental Yield: Spain offers competitive rental yields, averaging 4-5% in Madrid and Barcelona. Coastal cities like
Valencia can see yields as high as 6-7% due to tourist demand.
Germany
- Capital Appreciation: Berlin’s property market remains strong, with an average annual growth of 6-8%. Munich and
Hamburg follow closely, with growth rates around 5-7%. - Rental Yield: Berlin offers solid rental yields, typically around 3-4%, while Munich and Hamburg are slightly lower at
2-3% due to higher property prices
Hungary
- Capital Appreciation: Budapest continues to be a standout performer with annual price increases of 8-10%,
particularly in gentrifying districts. - Rental Yield: Budapest boasts some of the highest rental yields in Europe, ranging from 5-7% depending on the
location, with the city center offering the best returns.
The Netherlands
- Capital Appreciation: Amsterdam’s property prices have been growing steadily, with annual increases of 6-8%. The
city’s limited housing supply continues to drive up prices. - Rental Yield: The average rental yield in Amsterdam is 3-4%, reflecting the city’s high demand and competitive
market, especially for centrally located properties.
Poland
- Capital Appreciation: Warsaw and Krakow are emerging markets with strong potential, showing annual capital
growth of 6-8% as Poland’s economy strengthens. - Rental Yield: Rental yields in Warsaw are among the highest in Europe, averaging 6-7%, driven by a growing
population of young professionals and expatriates.
If you want to learn more about updates from other countries, you can download this file.
