The city has the second-highest rental rates across Europe, with landlords charging an average of €25.30 (£22.82) per square metre.
For overseas buyers, London is often seen as a safe haven and it landed in second place in Mashroom’s list. The capital city has the third-highest rental rates in Europe, averaging at €20.10 (£18.13), and – something that many London landlords might dispute - the city also had the strongest pro-landlord laws out of all the cities in Europe, scoring 2 on the GlobalPropertyGuide.
Below, you can see the top 10 cities in Europe for property investment:
For its report, Mashroom looked at the cities with the strongest pro-landlord laws in place and the average rental rates in each city, and ranked them accordingly.
You can see the full, comprehensive report here.
Luxury resort releases its annual report
Sticking with overseas property and the news that Quinta do Lago, the exclusive residential resort situated in the Algarve, has released its annual real estate market report. Following careful evaluation from February 2020 to February 2021, the report revealed a significant rise in virgin plot sales, despite the challenges posed by Covid-19.
Sales at Quinta do Lago’s virgin plot development, San Lorenzo North, have doubled when compared to 2019 while enquiries have grown by nearly half (47%). Some 65% of the plot site is now sold with seven villas now fully built. Plot prices have reached an ‘impressive starting price’ of €3.2 million, up by 26% over the past seven years.
In addition, despite the pandemic, Quinta do Lago Real Estate witnessed a 52% increase in the number of leads this January, when compared with the start of 2020. The resort has also welcomed a 300% increase in sales at the beginning of this year.
“Our buyers invest in Quinta do Lago because they have trust in our luxury market and quality offering and currently, we are continuing to receive a steady stream of interest and enquiries,” Sean Moriarty, chief executive of Quinta do Lago, said.
“Our virgin plot sales at our exclusive development, San Lorenzo North, have been performing extremely well with a 100% increase in sales. This is the largest demand we have seen and ultimately comes down to flexibility - San Lorenzo North offers buyers’ the chance to build their own home tailored to their unique demands, which have never mattered more than in the last year. We are not anticipating any significant increases in property prices due to the impact of Covid-19.”
Emerging property trends
Like many other parts of the world, Quinta do Lago has seen a change in buyer priorities and demands. Buyers are now more demanding when choosing a property due to the increased amount of time spent at home, with a second home no longer viewed as a lock-up-and-leave bolthole but a safe space for someone to base themselves more permanently.
Because of the huge increase in working from home, high-speed internet is now a necessity and the importance of being located near to a top international school is also on the increase.
People are now changing the way they buy and view properties, too, with buying remotely becoming far more commonplace. Quinta do Lago Real Estate reported fewer property tours pre-purchase (due to travel restrictions, one site visit will now close a deal as opposed to three).
Unsurprisingly, there has also been more demand for real estate technology and digital tools, for example 3D guided virtual tours, to give people a good indication of the home they are going to buy without actually having to be there.
When it comes to buyer nationality, the UK continues to be Quinta do Lago’s strongest market despite the twin challenges of Covid and Brexit.
There has also been growing interest from the domestic market, increasing from 11% to 20%, while other feeder markets include Ireland. Interest from Belgium, The Netherlands, Germany, Luxembourg and Switzerland is also continuing to grow.
Quinta do Lago has also found that the average age of buyers at the resort is falling significantly as it becomes a more family-focused and lifestyle destination. Since Covid, there has been a growth in enquiries from young families and three-generational families who are looking to move to a safe community with green, open space.
Lastly, the demand for the Golden Visa scheme remains low in this part of the Algarve – which will be disqualified from the scheme from the start of next year anyway – with more buyer interest in the tax benefits granted by Portuguese legislation, such as via the NHR scheme.
What are the investment opportunities?
Despite Covid-19, the team at Quinta do Lago say the last year saw fantastic investment opportunities at the luxury resort, with the estate utilising the quieter time to improve and enhance their offering.
This included a new real estate project, Wyndham Grand Algarve Residences, on which Quinta do Lago Real Estate has been appointed the sole local agent.
Popular seafood restaurant Casa do Lago also received a £1.25 million (€1.4 million) renovation and the golfing resort’s renowned South Course saw a £7 million (€8 million) investment. Following on from the launch of the Quinta Farm back in 2019, the resort has also announced a new sustainability strategy in the form of new measures ‘that will foster nature, conserve resources and support the community’.
With a property market that is continuously developing, Quinta do Lago boasts a variety of luxury homes including new builds, re-sales and rentals. All feature ‘top-of-the-range amenities and beautiful, high specification interiors’.
The area remains a low-rise, low density and ecologically driven region, consistent with its original masterplan, established more than 45 years ago.
To ensure this is preserved, careful building restrictions are in place which means new developments are limited to just 9% amongst 2,000 acres of terrain and three renowned golf courses, all situated in the protected nature reserve of Ria Formosa.
“Covid-19 is going to affect our view of modern living and more importantly, our priorities. British buyers are giving even more value to nature, green living, safe spaces, and low-density environments,” Moriarty added.
“The Algarve, and especially Quinta do Lago, lends itself perfectly to this new approach. Nestled within the privacy and security of the Ria Formosa nature reserve, we enable families, friends and individuals to live a clean, heathy and active outdoor lifestyle all year round. We are committed to providing people with an opportunity to invest in their lives, improve their quality of living and reconnect with the natural world and for these reasons, I think our future is very bright.”
It's expected to be announced today by the Transport Secretary, Grant Shapps, that Portugal will be removed from the government's red list of countries from which travel is severely restricted, as case numbers in the country have fallen swiftly - along with hospitalisations, deaths and patients in intensive care. The Algarve, for example, recently went nearly one week without a Covid-related death.
Portugal has been placed on the red list since it was launched in mid-January, largely because of its close relations with Brazil - source of a 'variant of concern'. While international travel is banned in the UK until May 17, there is hope that travel between the two countries may now become easier this summer.