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Europe’s top buy-to-let property hotspots unveiled

UK property investors seeking lucrative buy-to-let investments should consider looking to the continent for higher rental yields, according to new research by international currency firm, World First.

The Netherlands has been identified as the best location in the EU for buy-to-let investments as it offers the highest rental yields in the region, at an average of 6.57%.

Aside from high rental returns, Dutch house prices look set to grow by 5% this year, according to US credit ratings company Moody’s, as quoted by the Financieele Dagblad. 

Investors familiar with the Dutch housing market will know that property price growth in the Netherlands has recently been led by Amsterdam, where house prices have increased by as much as 20% over the past 12 months. But experts believe that the Amsterdam property market is now overheating

World First’s research also identified Belgium and Portugal as attractive locations for buy-to-let investments, with the countries taking second and third places respectively in the EU buy-to-let league table. 

The residential property market in Belgium offers an average rental return of 6.47%, while 6.29% is achievable in Portugal. 

With stringent rental controls in place and a market that favours tenants, Sweden offers the lowest rental yields in the EU, at an average of just 2.88%. This was followed by France (3.22%) and Italy (3.55%).

Investors undeterred by new stamp duty increases for buy-to-let properties in the UK, may be interested to learn that the UK ranked 21st of the 29 countries analysed in the buy-to-let league table, with an average rental return of 4.28% on offer. 

“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,” said Edward Hardy, Market Analyst at World First. 

“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,” he added. 

European countries with the best buy-to-let income:                        

1          Netherlands (EUR) - 6.57% (Average Yield)
2          Belgium (EUR) - 6.47%
3          Portugal (EUR) - 6.29%
4          Hungary (HUF) - 6.21%
5          Turkey (TRY) - 6.13%
6          Slovakia (EUR) - 6.07%
7          Bulgaria (BGN) - 5.99%
8          Malta (EUR) - 5.90%
9          Cyprus (EUR) - 5.41%
10         Ireland (EUR) - 5.34%
11         Denmark (DKK) - 5.16%
12         Latvia (EUR) - 5.07%
13         Romania (RON) - 5.06%
14         Poland (PLN) - 4.98%
15         Spain (EUR) - 4.96%
16         Czech Republic (CZK) - 4.69%
17         Greece (EUR) - 4.51%
18         Luxembourg (EUR) - 4.48%
19         Lithuania (EUR) - 4.43%
20         Finland (EUR) - 4.31%
21         UK (GBP) - 4.28%
22         Germany (EUR) - 4.23%
23         Estonia (EUR) - 4.21%
24         Slovenia (EUR) - 4.09%
25         Austria (EUR) - 3.89%
26         Croatia (HRK) - 3.58%
27         Italy (EUR) - 3.55%
28         France (EUR) - 3.22%
29         Sweden (SEK) - 2.88%
 

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