The Best EU Country to Invest in Real Estate Market
Investing in Real Estate: The Best European Opportunities
A particular country within the European Union stands out in an index that identifies the locations with the best potential for real estate investment returns.
The Real Estate Trend Alert (RETA) index, a real estate consultancy firm, focuses on lesser-known and rapidly expanding areas to identify possible investment opportunities over the next thirty years, especially in areas where demand for high-end properties is on the rise.
Unlike most real estate market indices, which focus on major financial centers with high costs and not so attractive rental yields, RETA takes an approach oriented towards destinations that offer a good value for money, growth potential, strong rental appeal, and an excellent quality of life.
The Best EU Country for Real Estate Investment: Portugal
In its inaugural edition, the index is crystal clear: Portugal offers the most interesting investment opportunities in Europe.
However, it’s not in Lisbon or Algarve – now close to saturation levels – but particularly in the central and northern areas.
One of the notable Portuguese towns highlighted in the index is Caminha, a municipality with less than 20,000 inhabitants located in the district of Viana do Castelo, ranking 2nd on the list and being the first European town to appear.
Described as “practically unknown” by the authors of the report, Caminha offers the best value for money along the Portuguese coast.
However, the analysis goes beyond traditional market assessments based solely on macroeconomic data.
The index results from extensive on-site research, where each destination is personally evaluated by RETA members participating in the study.
One member who visited Caminha, about an hour from Porto and separated from Spain by the river Rio Coura, mentioned seeing “shells of empty buildings waiting for someone to bring them back to life”.
“I believe Caminha is on the brink of a boom.
The wealthier visitors and second homeowners from Northern Europe and North America haven’t arrived here yet, but I think they will, and when they do, prices will rise,” explained the expert.
“During my recent visit, I found a four-bedroom apartment in the city center for just 140,000 euros.
For 395,000 euros, there was a large 3,200-square-meter house overlooking the river and Spain,” as stated in the report.
But Caminha is not the only Portuguese location in the top 20 list for real estate investment.
Exploring Portugal’s Real Estate Gems
On the Silver Coast of Portugal, extending from the north of Lisbon to Figueira da Foz, lies the Costa d’Argento (Silver Coast), ranking 7th in the index.
Known for its long stretches of fine sandy beaches, the region also boasts historical gems like Alcobaça, medieval Óbidos, surrounded by walls, and Aveiro, known as the “Portuguese Venice”.
Further down the list, at the 11th spot, is Madeira, an archipelago of volcanic origin situated in the Atlantic Ocean, belonging to Portugal.
The index identifies 20 locations with the highest potential for real estate capital appreciation.
The Top 20 Best Places to Invest in Real Estate
Above all, Mexico shines: Baja California Sur secures the 1st place, while Riviera Maya captures the 3rd spot, especially due to their popularity among remote-working professionals, mostly Americans, which has increased during the pandemic.
Here is the complete ranking:
- Los Cabos (Mexico)
- Caminha (Portugal)
- Riviera Maya (Mexico)
- Estepona (Spain)
- Rocha (Uruguay)
- Panama City (Panama)
- Medellín (Colombia)
- Guanacaste (Costa Rica)
- Costa d’Argento (Portugal)
- Montpellier (France)
- Madeira (Portugal)
- Placencia (Belize)
- Punta Cana (Dominican Republic)
- Antibes/Juan-les-Pins (France)
- Montenegro Umbria (Italy)
- Loreto (Mexico)
- Southern Zone (Costa Rica)
- Kenmare (Ireland)
- Turkish Riviera (Turkey)
According to the analysis, these locations will be increasingly favored by professionals enjoying work flexibility, thus increasing the demand for properties in areas that combine excellent quality of life and citizen services.
