You are here: Home -

Revealed: Europe’s top buy-to-let property hotspot

0
Written by: Christina Hoghton
16/05/2016
The Netherlands is the best location in the EU for buy-to-let investments as it offers the highest rental yields in the region, according to new research by World First.

The international currency business said that Belgium and Portugal are also attractive locations for buy-to-let investments, taking second and third respectively in the EU buy-to-let league table.

With an average rental yield of 6.57%, the Netherlands is the most lucrative country for buy-to-let investments within the EU, due largely to the relatively low price of buying property. The average one bedroom apartment costs just over £110,000 and a three bedroom house costs around £211,000. In the UK, the average price of a one-bedroom apartment is £179,000 and a three-bedroom house is £343,000.

At the other end of the spectrum are Sweden, France and Italy, which offer the lowest returns on buy-to-let investments. Sweden has yields lower than 3% (2.88%) due to rental controls and a market that favours tenants.

Urban return

The research also revealed differences when investing in buy-to-lets in city centres compared to suburbs and rural areas. For buy-to-let in city centres, Belgium takes the lead with yields of 6.54%. This is partly due to the dominance of Brussels as an expat destination for those working at or within the European Parliament, European Commission, Council of the European Union, and the European Council.

For properties outside the city centre, the Netherlands again has highest yields (6.78%), closely followed by Turkey (6.65%) and Portugal (6.57%).

Edward Hardy, market analyst at World First said: “With the recent changes to stamp duty tax for buy-to-let landlords, UK property investors looking to add to their portfolio might want to consider looking further afield to get the best returns.

“Our research shows that within the EU, the Netherlands, with relatively affordable property prices, holds the highest level of returns in Europe. On the other hand, countries that have policies in place to regulate rental prices like Sweden and Germany offer relatively low yields for investors.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FCA: Scope to improve competition in mortgage market

More can be done to improve competition in the mortgage market despite recent changes to lending rules, the financial regulator...

Close