Diversifying your portfolio into European real estate is a better idea now than it has been in more than a decade. The dollar is close to par with the euro, providing U.S. dollar holders with more purchasing power than they’ve had in Europe since 2003.
Currency fluctuations and negative economic factors are also creating opportunities for foreign investors. Spain’s housing bubble and Greece’s debt crisis, for example, have resulted in drops in real estate prices. Elsewhere in this region, positive developments are favorably impacting investment potential. For example, Ireland’s property market is surging.
There are a couple of specific regions of Europe where retiree property buyers might want to focus their attention. The Abruzzo Province in Italy is among the most affordable spots in Europe, and also one of this region’s best places to think about retiring. This sparsely populated region where central Italy merges into this country’s more languid south is as picturesque as Tuscany or Umbria, but less discovered. You could buy an apartment in a good location in this beautiful province that boasts both coastal and mountain lifestyle options for as little as $1,015 per square meter. Small but habitable village houses can be purchased for as little as $50,000.
Another super affordable corner of southern Europe is Croatia’s Istrian Peninsula, where you could buy an apartment in Pula for $1,313 per square meter. Croatia borders the Adriatic Sea and offers two appealing retirement lifestyle options: coastal and inland. Istria is a region of meadows, vineyards and olive groves. Istria is a fairy-tale land of fortresses and bell towers that so attracted and impressed the Romans that they invested in some of their best building here, including a large and largely intact coliseum at Pula where lions and Christians once entertained. Later, this region was ruled by the Venetians, who also left an architectural legacy. In Istria, both nature and man have worked together over many centuries to create something very special, almost magical. In fact, the ancient Romans referred to Istria as Tierra Magica.
Only slightly more costly is Valletta, Malta. The three-island nation of Malta is a shining first world jewel in the middle of the Mediterranean. An European Union member where English is almost universally spoken by the multilingual population, Malta is close to a complete package. Health care is superb, and all Europe is a quick plane hop away. The Maltese people are warm and welcoming with a culture all their own. Right now, you could own in one of the world’s most historic cities, Valletta, built during the rule of the Knights Hospitaller or Knights of Malta in the 16 th century, for an average of $1,320 per square meter. But note that Malta imposes restrictions on foreigners buying property in this country. You must spend at least 104,737 euros when buying an apartment and at least 174,514 euros when buying a house.
Only slightly more costly than Valletta is Algarve, Portugal. This Old World region has been attracting foreign retirees for decades and is home to more than 100,000 resident expat retirees. Thanks to its 3,300 hours of sunshine per year, more sunny days than almost anywhere else in Europe, the Algarve has a longstanding reputation as a top summer destination among European sun-seekers and a top winter retreat for those looking to escape Northern Europe’s coldest months.
The Algarve’s 100 miles of Atlantic coastline are punctuated by jagged rock formations, lagoons and extensive sandy beaches, many awarded coveted blue flags from the European Blue Flag Association. The water off these shores is azure, and the cliff-top vistas are spectacular. In other words, you could fill your days here at the beach swimming, sunning and boating. In addition, the region boasts 42 golf courses in less than 100 miles and is generally recognized as a top golfing destination in continental Europe. You could purchase a place of your own in Portugal’s Algarve for $1,345 per square meter on average.
Bucharest, Romania, is another affordable euro property market. Bucharest’s old town is the only part of this city to have escaped Nicolae Ceausescu’s bulldozers. More recently, this historic area has undergone some restoration. Bucharest’s Old town offers walking streets, sidewalk cafes, churches, museums and restaurants. And the city in general shares Europe’s urban history, culture and fondness for the arts, architecture and education. The average cost of owning in Bucharest at the current rate of exchange between the dollar and the euro is $1,432.
Note that while Romania and Croatia are members of the European Union, each of these countries has its own currency. Romania uses the leu and Croatia the kuna. However, real estate in both Romania and Croatia is priced in euro, meaning you get the dollar-holder benefits from today’s strong dollar.
You could own a home of your own in seaside Budva, Montenegro, for as little as $1,839 per square meter. Budva is a 2,500-year-old city on the Adriatic with a well-preserved medieval walled center. The coast around Budva offers beautiful sandy beaches and a Mediterranean climate.
Economic crisis continues in Greece, and property values reflect this. The average cost of owning in Athens is $2,116. But Ireland’s recovering economy is helping to push property prices up. The average per-square-meter cost to buy in Dublin district two (a top choice for rental investment and expat lifestyle) is $3,975. Prices in Ireland in general were up 17.6 percent between the first quarter 2014 to first quarter 2015. This is the biggest 12-month increase in almost 15 years. Another top lifestyle choice in Europe, Barcelona, Spain, is considerably more expensive. The per-square-meter cost of buying in this harbor town is $5,213. At the other end of the spectrum is Paris and Monaco, two of the most expensive euro-property destinations.
Here are the per-square-meter costs of owning real estate in 15 European destinations. These prices are based on the average costs of 50- to 100-square-meter two-bedroom apartments in move-in condition for sale in each market.
— Abruzzo Province, Italy $1,015
— Pula, Croatia $1,313
— Valletta, Malta $1,320
— Algarve, Portugal $1,345
— Bucharest, Romania $1,432
— Budva, Montenegro $1,839
— Athens, Greece $2,116
— Krakow, Poland $2,404
— Amsterdam, Netherlands $3,894
— Dublin, District 2, Ireland $3,975
— Salzburg, Austria $4,279
— Munich, Germany $4,875
— Barcelona, Spain $5,213
— Paris, France $14,724
— Monaco $38,369
Source: Live and Invest Overseas calculations
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group .
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15 Places to Retire in Europe originally appeared on usnews.com
