The current condition of the world economy is complex, and no one is safe pending more significant crises. To protect your assets and support yourself in a secure future, you may consider opening up a portfolio with investments in real estate.
The current condition of the world economy is complex, and no one is safe pending more significant crises. To protect your assets and support yourself in a secure future, you may consider opening up a portfolio with investments in real estate.
Europe has always been considered a haven for investors due to its relatively stable markets and unparalleled geographic position at the center of the European continent. Investment opportunities are vast, and new developments are taking place all across Europe every day, so it can be challenging to decide where you should look for your property purchase.
Options To Invest In Real Estate In Central Europe
1. Retail Property
Retail real estate is a relatively new investment in Central Europe, with the market growing exponentially by almost 20% yearly. This increase has increased the choice available to investors and created more interest in the sector, which signifies that this trend is likely to continue. A return on retail properties can be made through rent and capital growth, which helps you earn a better return on your investment than other types of property. Due to its increasing demand, retail real estate is typically one of the more sought-after investments today.
2. Office Property
Office buildings come in all shapes and sizes, from huge commercial spaces in big city centers to smaller branch offices dotted around the suburbs. Office buildings are suitable for either local or international businesses and can provide a solid return on investment over time. However, office buildings are often quite expensive, so it is recommended that you look towards the secondary market, where there are more affordable opportunities.
3. Apartment Or Residential Property
The best choice for investment in Central Europe is usually to purchase an apartment or residential property for two main reasons. First of all, diversification: the more types of property you hold in your portfolio, the safer you are. Secondly, apartment buildings typically have communal areas that can provide investors additional income, such as storage and parking spaces. Depending on the structure you choose to invest in, this alone can be a great source of income for potential investors. Look for real estate right here at Real Estate Expat Experts.
4. Greenfield Development
Another type of investment is a relatively new phenomenon in Central Europe, and it will likely become increasingly popular, especially with the improved economic conditions and the growing market. Greenfield developments are considered rapid projects in new or less urbanized areas, where investors must build infrastructure from scratch and construct new buildings. These areas present an excellent profit potential, but because greenfield developments require time, money, and human resources to implement, the return on investment is usually less than for renovated buildings.
5. Commercial Properties
Commercial properties are usually located in urban areas and offer a high-profit potential due to their location, proximity to well-known businesses, and near public transportation. However, it is often difficult to find both the right place and the right property to optimize any potential profits. It is also a precarious investment and unsuitable for those not experienced in the field, and commercial real estate investment needs to be dealt with caution. Maybe you have seen the time share price and are thinking of getting one as an investment. Before you do that, make sure to research about why many people are not in favor of getting timeshares.
6. Wetland Property
Wetlands are a type of land protected by law due to their function in the environment and their importance for human life and health. Due to their natural position, wetlands cannot be developed, so they can often provide high profits to investors through agricultural development. The wetland properties are usually located in areas where there is an increase of humans, and access to water supply can be a critical aspect of money-making. But since wetlands cannot be developed, they offer even more significant potential for profit over time.
7. Luxury Residential Properties
Luxury residential property is usually a good investment opportunity, especially in big cities with good cultural and entertainment scenes, higher rents, and strong capital growth. In the current market, it is recommended that you purchase a house or an apartment which has undergone refurbishment, as this will increase its value and help you earn more on your investment than if you bought an older building that needs improvement work done. Although it is essential not to overlook your safety when purchasing a luxury property in a new country, it can be an excellent option for investors if they know what they are doing.
8. Land
One of the most important steps when purchasing a property in Central Europe is ensuring that you have the necessary land to build. One way to do this is to choose your plot of land, but it may not be feasible for many people. In this case, you will usually have to look into purchasing a property with vacant land available. The best option is generally going for an older house or an apartment which needs refurbishment, as all property in Central Europe is subject to rent regulation. So older buildings are more likely to return a stable return on investment, which can provide an additional safety buffer if necessary.
9. Farmland
Farmland is another type of property that can be a good choice for investors to consider if they own agricultural land or have the right connections. Farmland is usually more affordable than most other types of land and can provide a safer return on investment since farmland rents are regulated in many European countries. The main problem with investing in farmland is that it takes a great deal of time to become profitable, and one must also be sure to choose the right kind of farm to make a profit from it.
10. Condo/Townhouse
The purchase of a condo or townhouse can also be a good investment opportunity, especially if you plan to sell it in the future. While they are not as profitable as an office or residential properties, the main advantage of these properties is the flexibility of access to low maintenance income and often lower taxes.
In Central Europe, the real estate market is generally prevalent among locals and foreigners alike, and there are plenty of investment opportunities even for first-time investors. Suppose you are just starting and need advice on the best kind of property to invest in. In that case, you can use our real estate investment calculator to determine which type of property best suits your financial situation and investment goals.
Final Words
There are several different properties in Central Europe, and they all present unique opportunities and risks. Apartments can be an excellent option for investors as they have lower levels of risk. Still, they also provide great potential for return on investment, primarily if they are located in major cities like Budapest or Bratislava. Another prevalent property in Central Europe is a real estate situated by the sea or other lakes and rivers, which is usually one of the most popular places to invest all over Europe.
