Property News Roundup: September

Welcome to this week’s property investment roundup, where we bring you the latest market movements, expert predictions, and investment opportunities across Europe and beyond.

 UK Market Recovery

Despite inflation and stricter lending conditions, property prices grew by 2.3% year-on-year in August, especially in areas with good infrastructure. Top cities for investment: Birmingham, Leeds, Manchester, Sheffield, Liverpool, and Newcastle show strong yields and robust rent growth. Birmingham, for example, forecasts price growth of 19.9% by 2028 and rental growth of 22.2%.

The average price of property coming to the market for sale rises by 0.4% (+£1,517) this month to £370,257. However, average new seller asking prices are now 0.1% below this time last year, following several months of muted price growth (source: Rightmove House Price Index)

Strong Investment Fundamentals.

After last year’s uncertainty with mortgage subsidies, Poland’s residential market is now more stable. Interest rates remain high (around 7%), affecting affordability, but economic growth and positive investor sentiment drive commercial and logistics sector deals. Over €1.7 billion was invested in H1 2025, matching last year’s levels. Office and warehouse transactions are particularly active.

Poland’s GDP growth of 3.4% provides a healthy base for property investment. Hotel and retail sectors are also hitting five-year highs. Even with price growth, Polish yields outperform many Western European markets. The combination of capital appreciation and rental income makes this a compelling opportunity for buy-to-let investors.

Prices on the Rise

Spain’s housing market continues its upward trajectory. Bankinter predicts a 5% rise in house prices by the end of 2025, followed by a gradual market moderation, with price increases progressively slowing to just over 3% in 2026 and aligning with inflation. nterest rate cuts and population growth are fuelling demand across Spanish regions. The market is showing broad-based strength beyond traditional hotspots like Barcelona and Madrid.

Portugal Tops EU Property Price Growth Chart
Portugal has claimed the crown for the fastest-growing property market in the European Union. The country recorded the highest property price growth in the EU in the first quarter of 2025, with a remarkable 16.3% year-on-year increase, well above the EU average of 5.7% Portugal remains a hot market, but late entrants should be aware that affordability is becoming a concern. Property Market-Index forecasts prices to continue growing at a strong but more measured increase of 8.9% over the next 12 months (September 2025 to August 2026)

German Property Market Emerges from Two-Year Slump
Germany’s property market is showing signs of recovery after a challenging period. Since hitting bottom, prices are now about 3-4% up for houses and 5-6% for apartments, though existing houses and apartments remain 8-9% below their peak of spring 2022. Not all property types are recovering equally. New-built properties have never dropped as much, and their prices are already higher than ever before

Stable International Investment

After sharp declines in activity and prices, France’s property market is rebounding. Prices rose in Nice (+1.9%) and Marseille (+1.7%) over three months. Transaction volumes and buyer confidence are up, helped by falling mortgage rates. City flats with realistic pricing present the best options before price increases accelerate further.

 Belgium Property: Set for Rebound

Belgian residential prices will grow by 3% in 2025 as mortgage rates drop and housing shortages persist. Over half of Belgians believe property affordability remains a challenge, particularly for younger buyers. Energy-efficient homes will become even more important due to new environmental rules.

Confidence and Expansion

Italy’s residential market saw 8.1% growth in sales for Q2, led by Turin and Palermo. Falling interest rates and improved consumer confidence underpin the rise. Milan’s prices now top €5,000/m². The sector expects further gains thanks to positive economic indicators and near full employment.

Greece Property: Continued GrowthDubai

Housing prices will rise 4.4% in 2025 and then slow. Strong foreign investment and infrastructure projects support ongoing appreciation, especially in Athens and Thessaloniki. Rental yields run from 4–8%, with short-term lettings benefiting from tourist demand. Mortgage rates (2.9–3.5%) remain favourable. Investment incentives, including VAT exemptions, attract buyers from the UAE, China, and the USA .

Interesting Fact: 69.7% of Greeks own property, reinforcing a culture of home ownership.

Beyond Europe: 

High-Yield Investment in Dubai

Dubai’s property market set new records in September, with 20,127 sales, an 11.3% increase compared to September 2024. The total sale value reached AED 54.3 billion, up 21.2% year-on-year. Average price per square foot climbed to AED 1,689. Top-performing areas included Jumeirah Village Circle, Dubai Hills Estate, and Business Bay, which attracted investors with a mix of upscale amenities and family-friendly features. Luxury projects dominated the headlines, with an apartment in Aman Residences Dubai sold for AED 83 million, and a villa on The World Islands reaching AED 200 million. Meanwhile, rental prices continued their upward trend, with apartments averaging AED 88,000 yearly and villas AED 190,000. Commercial rents rose 10.3% to AED 75,000 per year. Source: www.zawya.com