Let’s take a closer look at the recent changes in the market and identify where investors can still acquire not just profitable but also high-yielding properties.
Investing in real estate across the EU is not only a way to secure a vacation home or a permanent residence but also a reliable source of rental income. An additional incentive is the availability of investment visa programs. However, these programs are constantly evolving, often introducing stricter requirements for new applicants.
By the third quarter of 2024, the European real estate market showed moderate growth. According to Eurostat, property prices increased by an average of 1.4% compared to the second quarter of 2024 and by 3.8% year-over-year.
The latest Deloitte Property Index: Overview of European Residential Markets confirms that Paris remains the most expensive city in Europe, with new housing prices reaching €14,900 per square meter. It is followed by Tel Aviv (€13,886/m²) and Munich (€10,900/m²).
Some cities are experiencing rapid price increases, creating opportunities for speculative investment. In Burgas (Bulgaria), rental prices surged by 125.8% following the country’s accession to the Schengen Area. Varna and Sofia also saw substantial rental price growth of 66.8% and 98.1%, respectively. Other cities with high rental growth include Manchester (+51.4%) and Lisbon (+24.8%).
Greece stands out from the broader trend. According to the Bank of Greece, in the third quarter of 2024, apartment prices grew by 7.8% year-over-year. Prices for new apartments (up to 5 years old) increased by 9.7%, while older properties (over 5 years old) saw a 6.6% rise.
In Athens’ prime central districts, apartment prices range from €2,000 to €4,500 per square meter, depending on the building’s age and quality. Newly built or recently developed properties start at €3,500 per square meter.
Overall, the European property market is displaying positive momentum, though growth rates vary significantly by country and region. The highest annual price increases were recorded in Bulgaria (+16.5%), Poland (+14.4%), and Hungary (+13.4%), while France (-3.5%), Finland (-2.8%), and Luxembourg (-1.7%) saw price declines.
According to Tasos Vezyridis, Executive Director and Head of Thought Leadership for Europe at CBRE, 2024 was a period of adjustment for the European property market. "With inflation easing towards target levels and interest rates peaking, we are heading towards a long-awaited stabilization. This year, we anticipate economic growth to improve as lower interest rates encourage corporate investment, while rising real incomes bolster consumer confidence," the expert stated.
The outlook for 2025 is equally promising. Investment activity in the real estate sector is expected to increase, driven by improved financing conditions, a greater supply of available properties, and a better alignment of buyer and seller expectations. More stable pricing will enhance investment returns, while a lower cost of capital will support increased transaction volumes.
Additionally, rental market activity is expected to pick up, particularly in the second half of the year. Demand will be highest for premium properties that meet modern living standards.
In summary, 2025 could mark a period of recovery and strengthening for the European real estate market after years of uncertainty, offering new opportunities for investors looking for stability and long-term gains.
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In 2024, many Schengen Area countries introduced legislative changes affecting residency-by-investment programs. Several nations have either phased out or tightened their "Golden Visa" policies, limiting opportunities for investors seeking residency through real estate purchases.
Portugal was among the first European countries to discontinue its "Golden Visa" program for real estate investments, officially ending this pathway in February 2023. The decision was part of the government’s broader strategy to combat the housing crisis and curb soaring property prices.
In November 2024, Spain, one of the most sought-after destinations for residency-by-investment, announced the closure of its Golden Visa program for real estate investors. Similar to Portugal, this move was driven by rising housing prices and increasing rental costs in major cities, which placed additional pressure on local affordability.
For years, there was speculation about whether Hungary would introduce a "Golden Visa" through real estate investments, with some suggesting it could become the most accessible program in Europe. However, this option was never implemented. Instead, Hungary now offers alternative residency routes through investment certificates or donations to public institutions.
Greece remains one of the last European countries with an accessible Golden Visa program tied to real estate. However, significant changes took effect on September 1, 2024:
However, there is still an alternative for those looking to invest at lower thresholds. Renovated properties that were converted from commercial to residential use remain eligible for the Golden Visa at the previous investment minimum of €250,000.
Malta continues to offer its Malta Permanent Residence Programme (MPRP), which requires investors to make a non-refundable contribution to a government fund, purchase or lease real estate, and make a charitable donation.
Italy provides multiple pathways for residency through investment, including:
Greece has long been a leading destination for real estate investors seeking European residency. With a minimum investment of €250,000, it remains one of the most accessible programs in Europe.
The Athens real estate market offers a diverse range of opportunities. In central districts, the average price per square meter in Q4 2022 was €1,774, an 8.4% increase from the previous year. In the southern areas of Athens, such as Glyfada, prices have reached €3,067 per square meter.
For comparison, other European capitals have significantly higher property prices:
U.S. investors can particularly benefit from favorable exchange rates between the euro and the U.S. dollar, making Greek real estate an even more attractive asset. Additionally, Greece’s growing tourism industry supports strong rental yields, especially in key holiday destinations.
While many European countries are closing their doors to real estate-based residency, Greece remains a top choice for investors. With rising property values, a robust rental market, and an accessible Golden Visa program, it continues to offer some of the best opportunities for those looking to secure European residency through real estate.
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