In today’s world, it’s more important than ever to keep your savings, and investing in real estate is one of the most accessible tools here. However, with all the comprehensibility of such a tool, every novice investor has a lot of questions, the main one being how to choose the right country for investment in order to get a quick (and most importantly, guaranteed) return as soon as possible.
Investing in real estate – a simple theory you need to know
In an ever-changing world, one of the most popular ways to keep your savings is to invest in real estate. Most people investing for the first time choose residential real estate and most often buy an apartment or house in one of the European or coastal countries. But how do you choose the right direction of purchase if you don’t have time to delve into global trends in the real estate market? Let’s look at this question in more detail.
There are several investment options, which basically boil down to two models of market behavior:
- buy an apartment in a new building under construction to sell it later at a better price;
- buy an apartment on the primary or secondary market in order to rent it out and earn a monthly income.
In the first case, it is important to understand the prospects of the real estate market, and in the second case, it is particularly important to take into account ROI (profitability ratio). To make the choice easier, REALTING has prepared five interesting proposals for the most promising destinations based on all observations.
Portugal. Apartments in a historic building that never get cheaper
Buying an apartment in a new building and waiting for its value to increase is probably one of the easiest ways to invest in real estate. However, there is always the possibility of confusion: with the site where the house is located, or the stage of construction, or even with the construction company. There are properties where you cannot make a mistake, because their value will only increase over the years. Such apartments are unique and experienced investors usually buy them first, keeping them for themselves or for VIP tenants.
Such apartments are currently available in the Portuguese city of Porto, where an ambitious project is being implemented: a modern residential complex in a historic building. The house is located close to the historic center, a UNESCO World Heritage Site, the National Theater Are João, the Fontainhas viewpoint, the metro, the train station and the waterfront of Porto.
The residential complex consists of three different blocks (A, B, C), each of which is characterized by features of Art Nouveau and palace architecture from the early twentieth century. The complex will include a total of 32 apartments and 2 commercial stores. There will also be a basement with a parking lot for 15 cars. Completion of construction is scheduled for April 2023.
Apartments here start at 230 thousand euros and qualify for the golden investment visa program. This is interesting because after five years of having a residence permit in this country, the investor can apply for citizenship or permanent residence in Portugal.
Lithuania. Modular houses as a separate incarnation of freedom
Experts talked about the prospects of the Lithuanian real estate market at the beginning of the year. Even then, the cost of housing in the country’s large cities was rising by about 20% per year, and in mid-2022, the cost of a square meter of an apartment in Vilnius ranged from €2500 to €3000 on average. At the same time, on the wave of high demand, offers for 4500-5000 euros/m² and more are already appearing. Such large cities as Kaunas, Klaipėda and Palanga are not far behind the capital, showing a stable increase in the cost per square meter of residential real estate. This, of course, applies not only to apartments, but also to private houses, where construction costs have increased literally several times over the last two years.
At the same time, the Lithuanian real estate market is growing by leaps and bounds. Large international companies continue to locate their offices in Vilnius, Kaunas and other cities. This means that the demand for renting apartments is still growing.
In such a situation, the investor should pay attention to the most effective housing options, which will start to bring profit to their owner immediately after purchase. And one of such options is modular houses in the suburbs of Vilnius.
The houses, whose prices start from 122 thousand euros, are modular buildings with a total area of 67 m² to 200 m² and plots of up to 22 ha. And the developer is willing to choose a house to suit literally any wish – each owner can choose the layout that suits him. In addition, efficient energy solutions owned by residents will allow for the effective development of housing estate greenhouses and the popularization of a healthy lifestyle.
Greece. Apartments in a residential complex as a breath of fresh air.
Greece doesn’t need to be advertised to investors – the country has recently become incredibly popular. Compared to last year, foreigners buy real estate in this country 67% more often. Of course, this also resulted in an increase in the price per square meter of housing – apartments in Greece in the second quarter of 2022 increased by 9.4% compared to the previous year. While demand for rental housing in Greece has always been extremely high, rents across the country have increased by at least 12% over the past year. You can read more about the Greek real estate market here, and in the meantime, we are looking at a project that would be a great investment.
One of the major development and investment companies in Greece – Vitruvius Investments – offers its partners a unique approach and excellent investment opportunities in Melissia Oxygen.