Earlier, we examined countries in Europe that qualify as low-risk, good investments due to their stable economies and well-developed legal frameworks. On the other side of the scale, however, there are numerous countries in Europe where real estate investment may be slightly riskier in terms of returns, but based on our current knowledge, it’s worth investing in these countries as property prices are relatively low and expected to rise in the coming years.
Hungary
Benefits: Growing economy, favorable tax environment for property investors, strong rental demand in Budapest, government programs for renovations, Hungary Golden Visa.
- GDP (2022): €165.6 billion
- Population (2024): 9.6 million
- Rental Yields (2024): 5.8% (average)
- Average Property Price for Purchase: €1,160 per square meter
- Average Property Price for Rent: €10-€13 per square meter
Risks: Currency fluctuations (Hungarian Forint), potential for stricter regulations on short-term rentals, political uncertainty.
Slovenia
Benefits: Stable economy, high quality of life, growing tourist industry, potential for capital appreciation in coastal areas and Ljubljana.
- GDP (2022): €58.01 billion
- Population (2024): 2.1 million
- Rental Yields (2024): 4.45% (average)
- Average Property Price for Purchase: €1,273-€2,746 per square meter
- Average Property Price for Rent: €10 per square meter
Risks: Relatively small property market, limited rental demand outside major cities, high upfront investment costs.
Turkey
Benefits: thriving tourist industry, government incentives to attract foreign investors, tax breaks, simplified residency procedures, relatively lower costs.
- GDP (2022): €847.16 billion
- Population (2024): 86.19 million
- Rental Yields (2024): 6.36% (average)
- Average Property Price for Purchase: €932 per square meter
- Average Property Price for Rent: €4.20 per square meter
Risks: Currency fluctuations (Turkish Lira), economy has experienced inflation, and the rapid pace of construction in some areas might lead to oversupply .
