The top European cities for property investment

Many people consider real estate to be the safest place to invest money.  Almost any real estate agent has shared the following quote (attributed to Andrew Carnegie) on one of their social media pages:

“90% of all millionaires became so through owning real estate.”

The market outlook for property investment in 2017 may seem bleak for post-Brexit UK, but if buyers pay attention to demand they can enjoy excellent risk adjusted returns.  The trick is to put your money in one of the top European cities for property investment. No matter how real estate markets are looking, popular European destinations are always going to attract tourists, especially Europe’s elegant capitals. As the real estate experts say, “location, location, location”.

Europe is a top destination for purchasing a home

According to a recent report on Emerging Trends in Real Estate in Europe, the country of Germany is leading the way for overall property investment prospects in 2017.

Germany as a country has a lot of strong choices for property investment. If you’re looking for the top European cities for property investment, let’s start with Dublin. Due to “an economy performing well over the average EU GDP level, a young fast-growing population, [and] the most business friendly tax regime in Europe,” Dublin is a great city for real estate investment and a potential alternate to London.

Looking to the north, Emerging Trends in Real Estate reports that the Nordic cities of Copenhagen and Stockholm stand out for “good demographics, growing economies and high quality of life.”

One of the most affordable capital cities in Western Europe, Lisbon is another strong candidate. Its market continues to recover and now shows promise for growth.

What is the top city in Europe for property investment?

Let’s travel further east in the Iberian peninsula to find the answer to this question. With “a growing economy, low financing costs, good potential for rental returns and capital appreciation” the Iberian Peninsula’s largest capital city, Madrid, ranks as the best European city for property investment.

Cheap property prices allow for long term capital appreciation on your rental property. They also allow for investors with more modest budgets to invest.


Madrid has the highest rental yields of any European capital city, and some of the highest in the world.

Madrid’s housing market has recovered and is posting new gains. Foreclosures were down by more than 30% in 2016 and housing prices are expected to increase by 4% in 2017. Future increases are forecast to be even greater: 19% from year-end 2016 to 2021.

The really good news for international investors is that non-Spaniards can purchase various types of property including residential, commercial and land. Another important benefit of buying property in Madrid is Spain’s Golden Visa rule. If you purchase real estate valued at €500,000 or more you receive a renewable two year residence permit. This gives you the freedom to travel visa-free within the Schengen area.

Looking through the lens of a rental property owner, Madrid’s tourism adds to its appeal. Spain is the third most visited country in the world after France and the United States. Barcelona and Madrid are the two most popular destinations in Spain, although Cataluña’s increasing contentious battle for independence makes the Catalan capital less ideal than Madrid as a property investment location. Furthermore, Madrid is much more friendly to foreign residents.

Low real estate costs and rising rental prices in Madrid are big draws for property investors. To learn more about the financial benefits of investing in Madrid real estate click here.

The icing on the cake

In our opinion, the most appealing reason to buy real estate in Madrid is its spectacular quality of life. It has the cultural appeal of capitals like Paris and London, but lacks the tourist trappings of Barcelona or Rome. Madrid has sunny summers and mild winters, very little rain (Adiós, London!), a relaxed and laid-back approach to life and an expansive and reliable public transit system. All of this in a buzzing city filled with elegant architecture that boasts an elaborate history.

If you think buying property in Madrid could be the right decision for you, make sure to use a company that knows all the ins and outs of the Spanish system and the tricks and tips to living in Madrid. Moving2Madrid can help you navigate the chaotic undertaking of purchasing property abroad. Unlike large global firms, we focus specifically and exclusively on Madrid. A team of international experts is available to help with initial assessment, search and negotiation, closing and taxes, and property management. Contact us today to get started enjoying the beautiful Madrileño way of life.

Join the Madrid lifestyle. Grab a drink and enjoy a sunset view of Madrid’s beautiful architecture from one of its popular terraces.


Posted on 10 October, 2017 by Pierre-Alban Waters in Return on investment - How to buy, New? Start Here


One response to “The top European cities for property investment”

  1. […] on the other hand, has been ranked as one of the best places to purchase property. The Madrid property market, specifically, is performing extremely well and prices are forecast to […]

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