Property News Roundup: august
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:
UK Market Recovery
After a subdued 2023, investor confidence in UK property rose through 2024, supported by expectations of interest rate cuts and stabilising yields. The UK is projected to remain one of Europe’s most active real estate markets in 2025, particularly in the rental and commercial sectors.
According to CoStar, the share of foreign capital investing in UK property increased between H1 2024 and H1 2025, reflecting improved international sentiment towards the UK market.
Strong Investment Fundamentals.
Poland is the most attractive market for international investors in Central and Eastern Europe, with the Polish real estate investment market maintaining its growth momentum in 2025. Gross rental yields for apartments in Poland averaged 6.13% according to Global Property Guide research conducted in March 2025.
Golden Visa Program Ends
On April 3, 2025, Spain formally eliminated the real estate option from its Golden Visa residency scheme, citing concerns about affordability and rising urban property prices.
The Alicante and Costa Blanca markets continue to attract buyers, with strong demand driving price growth and stable rental yields. Reported annual increases vary by source, but yields around 4.5–6% remain achievable in prime coastal areas.
Spanish banks reported near-record returns in early 2025, with sector return on equity at roughly 14–15% in Q1 2025. The six largest banks posted combined first-half profits of around €17 billion, up mid‑single digits year-on-year.
Post–Golden Visa Environment
Portugal remains attractive to real estate investors for its favourable tax incentives, relative affordability, and high rental yields (particularly in Lisbon and Porto). However, the real estate route for the Golden Visa ended in October 2023, meaning property purchase no longer qualifies for residency.
Residential Investment
Cushman & Wakefield noted that German residential property portfolios attracted about €1.2–1.3 billion in Q1 2025, making up close to 60% of total quarterly volume — underlining strong institutional interest in housing assets.
Germany recorded €22–25 billion of commercial real estate transactions in 2024, among the lowest annual totals in a decade but described by analysts as a sign of the market finding a floor after sharp declines in 2023.
Stable International Investment
According to CoStar, investment volumes in France remained relatively stable between H1 2024 and H1 2025, with steady participation from major international investor groups, particularly from North America and the UK.
High Transaction Costs
Belgium is considered a challenging market for investors due to high transaction and rental taxation, with net rental yields averaging around 3.5–4.5%.
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
Golden Visa Popularity
Greece continues to operate its residency-by-investment scheme, with thresholds of €250,000–€500,000 depending on location. Property prices have seen consistent growth, though yields are often lower compared to CEE markets. The program continues to draw international demand.
Beyond Europe:
High-Yield Investment Hub
The UAE remains one of the world’s most attractive real estate destinations. Dubai continues to offer tax-free property ownership, high rental yields, and residency options tied to investment, making it a global hotspot for wealth inflows in 2025.
💡 EXPERT INSIGHTS & PREDICTIONS
Markets in Central and Eastern Europe — particularly Lithuania, Hungary, and Slovakia — are offering some of the highest returns in Europe in 2025 due to relatively low entry prices and robust rental yields.
LaSalle Investment Management reports that expected forward returns for European property are at their highest levels in over a decade as a result of recent repricing and improved growth prospects.
📊 KEY MARKET FACTS
- European Rental Yields: Typical gross yields range from 3–7%, with higher returns in emerging and tourist-driven markets.
- EMEA Investment Volume: Commercial real estate investment across EMEA totaled about €185–190 billion in 2024, an ~11% increase vs. 2023.
- Best Returns: Lithuania and Hungary leading in ROI potential.
- Growth Rental Markets: UK, Ireland, Slovakia forecast among the strongest for rental growth in 2025.
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