The European property investment landscape is buzzing with activity this summer, as shifting trends, new regulations, and emerging hotspots create fresh opportunities for investors. Here’s what’s making headlines and shaping strategies this week:

In the UK, the Bank of England’s recent interest rate cut to 4.5% has sparked renewed activity, especially in London and Manchester. Mortgage applications are up 2%, and first-time buyers are returning to the market. With rates dropping, now is a smart time to consider fixed-rate mortgages to lock in lower payments before any future increases. The UK’s resilience continues to make it a cornerstone for property investors. Source: Financial Times, July 2025

Poland’s capital, Warsaw, is experiencing a rental boom, with average rents up 8% year-on-year. This surge is driven by strong demand from expats and remote workers, making new-build apartments particularly attractive. Warsaw now ranks among the top 10 European cities for rental yield, averaging an impressive 6.2%. Investors looking for high returns should keep an eye on this market.
Source: Notes from Poland, July 2025

Spain’s coastal property prices along the Costa del Sol and Costa Blanca have stabilised after two years of rapid growth, with a modest 1.5% increase in the second quarter of 2025. Demand remains strong from UK and German buyers, but clever investors are finding value in secondary coastal towns, where prices are 20-30% lower than in hotspots like Marbella or Alicante.
Source: El País, July 2025

Portugal’s property market is adjusting to revised Golden Visa rules, which now exclude Lisbon and Porto. This has shifted investor focus to the Algarve and interior regions, where property transactions are up 12% this quarter. With international demand growing, Algarve property prices are expected to rise 5-7% by year-end. The region’s lifestyle appeal and investment incentives continue to attract global buyers.
Source: Portugal Resident, July 2025

Germany’s Berlin has seen a 4% increase in advertised rents following the repeal of the city’s rent cap. While this has brought investors back to the market, affordability remains a concern for local tenants. Berlin’s rental yields are among the lowest in Germany at 3.1%, but capital appreciation is expected to pick up as the market adjusts.
Source: Deutsche Welle, July 2025

France’s Paris is still feeling the positive effects of the 2024 Olympics, with short-term rental demand remaining high. Average nightly rates in central Paris are up 15% compared to last summer. Investors should consider properties in Paris’s suburbs, where regulations are less strict and demand for short-term lets is growing. The city’s global appeal ensures continued interest from both tourists and investors.
Source: Le Monde, July 2025

Brussels, Belgium, continues its steady growth, with property prices up 3% year-on-year. The city’s expanding tech sector is attracting young professionals, boosting demand for modern apartments. Brussels remains a stable choice for investors seeking moderate growth and reliable rental income.
Source: The Brussels Times, July 2025

 Italy’s Milan is seeing its luxury property market heat up, with international buyers driving a 7% price increase in prime districts like Brera and Porta Nuova. Milan’s reputation as a fashion and business hub is attracting high-net-worth individuals, especially from the US and the Middle East. For those seeking value, up-and-coming neighbourhoods such as Isola and Lambrate offer prices still 20% below the city centre.
Source: Il Sole 24 Ore, July 2025

Greece’s Athens is in the midst of a property renaissance, with prices up 9% year-on-year. The return of tourism and the ongoing Golden Visa program are fueling demand, especially for short-term rentals in central and coastal areas. Greece’s Golden Visa remains one of the most affordable in Europe, with a €250,000 minimum investment, making it a top choice for international investors.
Source: Ekathimerini, July 2025

Beyond Europe: 

Dubai in the United Arab Emirates continues to attract global investors, with a 12% increase in property transaction volumes in the second quarter of 2025. The city’s tax-free status, strong rental yields averaging 7.5%, and new long-term visa options for property owners are key drivers. Dubai now offers a 10-year residency visa for property investors, making it one of the most attractive global destinations for long-term investment. Waterfront communities are especially popular, with prime property prices expected to rise another 6% by year-end.
Source: Gulf News, July 2025