Invest in European Property?

Question

Is it a good time to invest in Europe?

One of the quintessential European cities would be Barcelona, Spain. Although we can find other interesting cities to invest in such as Prague or Berlin.

At the moment, the real estate sector is going through a very good moment for investors, as it has been commented in publications such as https://homebusinessmag.com/businesses/real-estate/real-estate-investments-cities-barcelona/.

The pandemic has been a turning point in this sector as well as in other sectors. Is it time to invest in Europe?

Erwin Groenendijk · Answer

Hi @Ann Smith, following on @Enrico Angella answer here. There are more restrictions towards tourist rentals.

Curious to hear your strategy. We have been investing in and around Barcelona for some time now and can help you with everything.

Enrico Angella · Answer

Hello Ann,

I'm not an expert in the Barcelona market, but I was looking at it some time ago. Prices have gone up quite a bit and are back or over pre house crash prices.

What would your strategy be? Unfortunately, Airbnb and short term rentals are heavily restricted. Your most likely option would be a long term lease, which in Spain is 5 years or longer!

If you want to check some properties and get familiar with Barcelona neighborhood and prices, check out www.idealista.es, it's their Zillow.

As for Berlin, I owned real estate there for a little over 10 years. I would stay away from Berlin. It is an amazing city if you want to relocate there, but the current real estate market is 100% investor unfriendly. Prices are very high, no chance to short term leases, leases have no term and only the tenant can exit the lease. Moreover, Berlin municipality passed a rent control law last year that wiped out real estate investing there.

Cheers and best of luck in your investing

Matthew Zolan · Answer

Hi Ann, Prague has been performing incredible well as there are not enough apartments available to meet the demand, due to government bureaucracy, labor costs and influx of residence, both local and foreigners among other things. Right now there are many airbnb units in down town Prague on the market, which drastically reduced the prices, that for the first time, rental apartments on the outskirt of town are more expensive than in the center. We are looking at investments in secondary cities throughout the cz, that check the boxes of a "living city"; population growth, DFI, universities etc. better yields (cap rates) and lower barriers to entry. If you would like more info, here to help:)

Invest in European Property?

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