The Netherlands is the best location for buy to let properties in the European Union with the highest rental yields of 6.57% as of April 2016, new research shows.
Belgium and Portugal are also attractive locations for buy to let investments, taking second and third respectively in the EU buy to let league table compiled from research by international currency firm World First.
Average yields were 6.47% in Belgium and 6.29% in Portugal while Sweden was at the bottom of the list with the worst yield at 2.88% with the UK with 4.28% placed 21 out of 29 countries.
Home prices in northern Portugal fell by as much as 35 percent after the global real estate crisis of 2008, but in the last three or four years, prices have held steady, and the number of sales has been growing, said André Borges, a broker with the Porto office of Portugal Sotheby’s International Realty.
A total of €64.5 billion was invested in European commercial property in the final quarter of 2015, which took volumes for the full year to €238.5 billion, a 25% increase on 2014.
However, the fourth quarter total was only slightly up, by 0.5%, on the same quarter of 2014, indicating that investment growth lost a little momentum towards the end of the year, according to the latest European quarterly commercial property outlook report from Knight Frank.
However, it shows that increases in investment activity were widespread in 2015, with the core markets of the UK, Germany and France all seeing transactions rise by more than 20%.
Spain, Cyprus and Portugal could offer British buyers looking for a holiday home some bargains in 2016 with experts revealing that properties are starting at €50,000.
Some parts in Spain in particular currently offer some low priced properties that are not the wrecks usually associated with the bottom end of the market, according to Martin Dell, director of Spanish property portal Kyero.
The Lisbon metropolitan area, with more than 2.8 million residents, suffered after the global financial crisis of 2008, with home prices falling by 20 percent to 25 percent, agents said. But several actions taken by the government in 2009 — including the passage of an attractive new tax program for part-time residents — have helped the housing market in the Lisbon area, which includes Setúbal, to recover completely.
The level of investment into European commercial real estate continues to grow with €62 billion invested in the third quarter of 2015, up 18% on the same period in 2014.
France experienced the most noteworthy increase with investment activity of over €7 billion, almost double that of the same quarter in 2014, according to figures from CBRE.
Investors, chiefly foreign, poured a record 1.36 billion euros into Portuguese commercial property in the first 10 months of 2015, double 2014 levels, Cushman & Wakefield consultants said on Thursday.
Solid demand and falling supply is helping the recovery of the residential property market in Portugal as price rises are seen across all regions.
However, new sales instructions have fallen at a time when demand is growing and there has been a modest upturn in rental values, according to the August 2015 RICS/Ci Portuguese Housing Market Survey.
The European commercial property investment market has continued to gain positive momentum, with transaction volumes reaching €104.9 billion in the first half of 2015.
This was a 29% increase on the same period of 2014 and investment volumes for 2015 are forecast to reach €230 billion, which would make it comfortably the best year since the market peak of 2007.
Commercial property investment activity in Europe reached its highest level since 2007, totalling €102.5 billion in the first half of 2015, the latest market analysis report shows.
The investment volume across the 16 participating countries was 25% up on the same period last year, according to the European Investment Briefing report from international real estate advisor Savills.
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