European real estate investment during the first half of 2024

European real estate investment increased by 18% during the first half of 2024

Ian Waudby
Date: 12 Oct 2024
Read: 7 min

According to real estate consultancy Savills, real estate investment in Europe reached approximately €44.5 billion in Q2 2024, reflecting an 18% increase compared to the previous quarter. In terms of pricing, average returns have remained steady across all sectors for the first time in nine months.

Office Building in Huelva

Investment volumes for the first half of 2024 are expected to surpass €74 billion, roughly on par with the same period in 2023. Some markets have already exceeded this level, such as Spain, where investments rose by 10% to €5.66 billion, compared to €5.15 billion during the same period last year.

Savills notes that the European market is showing signs of stabilizing, both in activity and pricing. Sectors like multi-family housing, hotels, and logistics continue to attract growing investor interest. In this context, many international investors are eager to take advantage of favorable pricing across different European regions, leading to an expected increase in cross-border investment over the next 6 to 12 months.

As predicted, real estate investment trusts (REITs) are gradually increasing their activity, capitalizing on attractive valuations and the rise of more defensive asset classes. Additionally, institutional investors are cautiously re-entering the market as interest rates begin to decline. Meanwhile, non-financed investors, such as sovereign wealth funds and private investors, remain active in mid-market transactions across Europe.

Aereal Photography of a Brand New VIlla Developement in Costa Esuri, Ayamonte

Why Buying in Ayamonte is a Good Investment?

Ayamonte, located in the southern region of Spain, is becoming an increasingly attractive destination for real estate investors. Several factors make this town a standout choice for those looking to invest in European property:

Strategic Location: Situated near the border with Portugal, Ayamonte offers easy access to both Spanish and Portuguese markets, making it ideal for cross-border living or tourism. The town is also a short drive from popular beach resorts and golf courses, appealing to both vacationers and retirees.
Affordability: Compared to more saturated markets like the Costa del Sol or Barcelona, Ayamonte offers more affordable property prices, with strong potential for capital appreciation. Investors can take advantage of lower upfront costs while still benefiting from high rental yields due to its appeal to tourists and expats.
Tourism Growth: As a charming Andalusian town with a rich cultural heritage, Ayamonte is seeing increased interest from international tourists. This growth in tourism boosts demand for short-term rentals, offering investors the opportunity for a steady stream of income through vacation rentals, particularly during the high season.
Infrastructural Improvements: Ayamonte has been benefiting from ongoing infrastructural developments, improving its connectivity to major cities and airports. This enhanced accessibility makes it more appealing to international buyers and tourists alike, contributing to the area’s rising property values.
Lifestyle Appeal: With its relaxed pace of life, picturesque landscapes, and mild climate, Ayamonte is an attractive destination for retirees, families, and second-home buyers. Its balance of modern amenities and traditional Spanish charm adds to its appeal, encouraging long-term investment potential.
Government Incentives: Spain offers favourable residency options for property buyers, including the “Golden Visa” program, which allows non-EU citizens to obtain residency by purchasing real estate above a certain threshold. This can attract international investors seeking both a financial and lifestyle investment in Ayamonte.

In summary, Ayamonte’s strategic location, affordability, growing tourism market, and lifestyle benefits make it a promising area for real estate investment. Coupled with its potential for capital growth and attractive rental yields, it’s an excellent choice for investors looking to capitalize on Spain’s thriving property market.

Discover a wealth of properties in Ayamonte!