FX.co ★ Top 3 real estate markets in Eastern Europe that can bring you money

Slovakia

This country attracts investors by high liquidity of real estate, fairly cheap square meter, the abundance of ski resorts, and a similar mentality.

The profitability of residential real estate varies from 5.4% in the city centers to 5.3% on the outskirts.

According to the National Bank of Slovakia, during the last year, the value of the residential real estate increased by 4.8% to €1,396 per square meter. A one-bedroom apartment can be rented for €447–576 a month. However, there are few international companies in Slovakia and Bratislava is not very popular among tourists.

Offices’ price ranges from €1,000 to €4,000 per square meter depending on a city district. The average monthly income from the office property amounts to €15.35 per square meter. The country offers 1.72 million square meters of office space. Besides, 250,000 square meters are under construction. The ratio of vacant offices is just 6.18%.

The commercial property of Slovakia has strong scores. There are around 1.76 million square meters of active retail space. That is more than the average around Eastern Europe. Moreover, the market continues developing. Another 130 thousand square meters is under construction. The price of a square meter goes from €1,000 to €4,000 whereas a rent for a square meter totals €41 in the best locations, €15–38,5 – in shopping centers, and €8,25 — in less popular places.

Romania

During the last two years, economists have been logging significant economic growth, higher wages, and relatively low interest rates. Of course, this stimulates investors’ interest in residential real estate. In Romania, real estate cost is rather low in comparison to other European countries. A square meter ranges from €1,169 to €1,500. It is possible to rent a one-bedroom apartment in the city center for €284. On the outskirts, the price is just €207. In Bucharest, a rental yield of a house or an apartment is 6.1%.

In 2018, the office space added 150 thousand square meters. Property developers are planning to build another 650 thousand square meters of office space. The number of vacant spaces is constantly reducing. In summer 2018, their ratio was just 8% that is 3% smaller than in the previous year. The average price of a square meter in Bucharest is €2,000 whereas the rent is €10–18 per square meter.

In 2018, 189 thousand square meters of commercial property were built in Romania. This year, 250 thousand square meters are planned to be completed. Vacant offices total less than 10%. This is a very good reading. A square meter of office space in Bucharest can be bought by €1,000–3,500 and rented out by €55–65. In other cities, a square meter costs €15-40.

Bulgaria

Bulgaria attracts foreign investors by the lowest tax on real estate in Europe. It is just 0.15% of the cost. Investors’ income from residential real estate can total 5.36% in the city centers and 5.86% on the outskirts. During the year, new housing rose by 7.2% or 3.9% on the inflation-adjusted base. In the previous year, the prices increased at the same rate.

The average price of a square meter is €1,663 whereas rent goes from €186 to €246. Almost zero interest rate of bank deposits encourages people to invest in real estate. However, the construction pace is rather low despite high demand.

The price for office space in Sofia varies from €800 to €3,000 per square meter. There are 2 million square meters of office space whereas 434 000 square meters are still under construction. Only 9% of offices are vacant. At the same time, over the year, indicators have not changed much. Thus, the real estate market remains quite stable.

Commercial property in Sofia ranges from €1,000 to €5,000 per square meter. The price depends on the location. In the best places, the average price of a square meter totals €55. In the less profitable areas, a square meter costs €39. All around the country, only 40,000 square meters are under construction whereas the space in use is ten times larger. There is only 12% of the vacant area. This sector is also stable.