We’ve ventured beyond the realm of stable economies and low property prices to uncover a selection of countries that hold immense potential due to their thriving tourism sectors. These destinations offer the allure of attractive returns, stemming from both short-term and long-term rental opportunities.
Montenegro
Benefits: Affordable property prices, beautiful coastline attracting tourists, potential for capital appreciation in developing areas.
- GDP (2022): €5.8 billion
- Population (2024): 0.6 million
- Rental Yields (2024): 5% (average)
- Average Property Price for Purchase: €1,500 per square meter
- Average Property Price for Rent: €10-€19 per square meter
Risks: Limited liquidity in the property market, dependence on tourism industry, complex regulatory environment.
Spain
Benefits: Attracting millions of tourists annually, demand for vacation rentals and investment properties. Tax breaks for property investors, including reduced VAT rates on renovations and potential reductions in income tax for rental income.
- GDP (2022): €1.32 trillion
- Population (2022): 47,8 million
- Rental Yields (2024): 6.17% (average)
- Average Property Price for Purchase: €2,809 per square meter
- Average Property Price for Rent: €12 per square meter
Risks: The rapid construction pace in some tourist destinations could lead to oversupply and potentially affect property values in the short term.
Portugal
Benefits: Portugal offers the “Golden Visa” program for non-EU citizens who invest a specific amount in property. Portugal’s economy is on the rise, leading to increased demand for housing and potential capital appreciation for property investors.
- GDP (2022): €238.4 Billion
- Population (2022): 10.4 Million
- Rental Yields (Average): 5.47%
- Average Property Price (Purchase): €1,187 per square meter
- Average Property Price (Rent): €16 per square meter
Risks: Some analysts predict a cooling of the Portuguese market, with potential price decreases.
