The global real estate market continues to adapt to the new realities after the pandemic, with Europe particularly demonstrating resilience to global economic challenges. According to the European Central Bank, the average return on investment in European real estate in 2025 will be 4.8% per annum, which is 1.2% higher than the North American market. Meanwhile, certain segments of commercial and residential real estate in certain locations are showing returns of up to 9-12%.
International investor interest in European assets continues to grow: the volume of transactions with foreign investors reached €215 billion in 2025, with 45% of investors representing Asia, 30% from the Middle East, and 25% from North America. This distribution demonstrates the global appeal of the European real estate market.
Lisbon, Portugal: A Balance of Stability and Growth
Market Performance
Lisbon maintains its position as one of the most dynamic real estate markets in Southern Europe. According to the Portuguese National Institute of Statistics, the average price per square meter in the city's prime areas is €6,500-8,200, while in peripheral areas, properties can be found for €3,800-4,500 per square meter. Annual price growth has stabilized at 5-7% following a boom in 2021-2023.
Tax Structure
Profitability and Prospects
Average rental yields are 4.5-5.8% per annum for long-term rentals and 7-9% for short-term rentals. The Parque das Nações and Belém areas demonstrate particular potential.
Immigration Aspects
The Golden Visa program remains open for investments in commercial real estate and real estate funds with a minimum threshold of €500,000. Portugal's Golden Visa program is currently the most reliable immigration program to Europe, and program participants remain protected even after the tightening of application requirements.
Singapore: An Asian Country with European Stability
Market Performance
Despite its geographical location, Singapore remains an important destination for European investors to diversify their portfolios. The average price of luxury real estate in central areas is $18,000-25,000 per square meter (€11,500-16,000). The market is showing steady growth of 3-4% per year.
Tax Structure
Profitability and Prospects
Rental yields are 2.5-3.5% in the premium segment and 4-5% in the mid-price range. The greatest growth potential is seen in the Marina Bay and Sentosa Cove areas, where new business infrastructure is planned.
Berlin, Germany: Stability and Reliability
Market Performance
The German capital continues to attract investors with stable growth and high rental demand. Average property prices are €7,200-9,500 per square meter in prime areas and €4,500-6,200 in residential areas. Annual price growth is 4-6%.
Tax Structure
Profitability and Prospects
Average rental yield is 3.5-4.5%. Of particular interest are the districts of Friedrichshain-Kreuzberg and Berlin-Mitte, where there is a persistent shortage of quality housing.
Warsaw, Poland: Eastern Europe's Rising Star
Market Performance
The Polish capital is experiencing one of the highest growth rates in the EU, 8-10% per annum. The average price per square meter is €4,200-6,500. The market is characterized by high demand and limited supply.
Tax Structure
Profitability and Prospects
Rental income reaches 6-8% per annum. The greatest potential is seen in the Mokotów and Ochota districts, where business infrastructure is actively developing.
Barcelona, Spain: A Mediterranean Renaissance
Market Performance
After 2023-2024, the Barcelona market is showing a strong recovery. Average prices are €5,800-8,200 per square meter, with annual growth of 5-7%.
Tax Structure
Profitability and Prospects
Rental yield: 4.5-6.5%. The L'Eixample and Gràcia districts, with their high tourist demand, are particularly attractive.
Expert Forecasts for 2026
Technological Transformation and a Focus on Environmental Protection
Demand for “smart” buildings with integrated energy efficiency systems is expected to grow. Investments in ESG-certified properties can generate an additional 10-15% in returns.
Promising Segments
Conclusion
The European real estate market continues to offer a variety of opportunities for international investors. In 2026, Lisbon appears to be the most promising destination, combining high yields with relatively low tax burdens. At the same time, classic destinations such as Berlin and Barcelona remain attractive for conservative strategies.
Key factors for investor success in 2026 will be a thorough analysis of local tax changes, an understanding of migration trends, and competent portfolio diversification across different asset types and jurisdictions.
If you're planning to obtain a residence permit, invest in a country's economy, or purchase foreign real estate, we invite you to a consultation with our company. During a personal online meeting, we'll discuss your questions in detail and create a step-by-step action plan for you.
International investor interest in European assets continues to grow: the volume of transactions with foreign investors reached €215 billion in 2025, with 45% of investors representing Asia, 30% from the Middle East, and 25% from North America. This distribution demonstrates the global appeal of the European real estate market.
Lisbon, Portugal: A Balance of Stability and Growth
Market Performance
Lisbon maintains its position as one of the most dynamic real estate markets in Southern Europe. According to the Portuguese National Institute of Statistics, the average price per square meter in the city's prime areas is €6,500-8,200, while in peripheral areas, properties can be found for €3,800-4,500 per square meter. Annual price growth has stabilized at 5-7% following a boom in 2021-2023.
Tax Structure
- Acquisition tax (IMT): 6.5-8% of the transaction value
- Stamp Duty: 0.8%
- Annual Property Tax (IMI): 0.3-0.45% of the cadastral value
- Capital Gains Tax: 28% for non-residents
- Rental Income Tax: 25% for non-residents
Profitability and Prospects
Average rental yields are 4.5-5.8% per annum for long-term rentals and 7-9% for short-term rentals. The Parque das Nações and Belém areas demonstrate particular potential.
Immigration Aspects
The Golden Visa program remains open for investments in commercial real estate and real estate funds with a minimum threshold of €500,000. Portugal's Golden Visa program is currently the most reliable immigration program to Europe, and program participants remain protected even after the tightening of application requirements.
Singapore: An Asian Country with European Stability
Market Performance
Despite its geographical location, Singapore remains an important destination for European investors to diversify their portfolios. The average price of luxury real estate in central areas is $18,000-25,000 per square meter (€11,500-16,000). The market is showing steady growth of 3-4% per year.
Tax Structure
- Stamp Duty: Up to 6% for foreign buyers
- Additional Buyer's Stamp Duty: 35% for foreigners
- Annual Property Tax: Progressive rate of 4-16%
- Rental Income Tax: 22% for non-residents
Profitability and Prospects
Rental yields are 2.5-3.5% in the premium segment and 4-5% in the mid-price range. The greatest growth potential is seen in the Marina Bay and Sentosa Cove areas, where new business infrastructure is planned.
Berlin, Germany: Stability and Reliability
Market Performance
The German capital continues to attract investors with stable growth and high rental demand. Average property prices are €7,200-9,500 per square meter in prime areas and €4,500-6,200 in residential areas. Annual price growth is 4-6%.
Tax Structure
- Acquisition Tax (Grunderwerbsteuer): 6.5% in Berlin
- Annual Property Tax (Grundsteuer): 0.8-1.5%
- Rental Income Tax: 25-45% depending on residency status
- Capital Gains Tax: 25% + solidarity contribution
Profitability and Prospects
Average rental yield is 3.5-4.5%. Of particular interest are the districts of Friedrichshain-Kreuzberg and Berlin-Mitte, where there is a persistent shortage of quality housing.
Warsaw, Poland: Eastern Europe's Rising Star
Market Performance
The Polish capital is experiencing one of the highest growth rates in the EU, 8-10% per annum. The average price per square meter is €4,200-6,500. The market is characterized by high demand and limited supply.
Tax Structure
- Civil Transaction Tax: 2%
- Property Tax: 0.035-0.95% depending on the property type
- Rental Income Tax: 8.5-12% under the "Established Rent" preferential program
Profitability and Prospects
Rental income reaches 6-8% per annum. The greatest potential is seen in the Mokotów and Ochota districts, where business infrastructure is actively developing.
Barcelona, Spain: A Mediterranean Renaissance
Market Performance
After 2023-2024, the Barcelona market is showing a strong recovery. Average prices are €5,800-8,200 per square meter, with annual growth of 5-7%.
Tax Structure
- Property Transfer Tax (ITP): 8-11%
- Property Tax (IBI): 0.4-1.1%
- Capital Gains Tax: 19-23% for non-residents
- Rental Income Tax: 19% for non-residents
Profitability and Prospects
Rental yield: 4.5-6.5%. The L'Eixample and Gràcia districts, with their high tourist demand, are particularly attractive.
Expert Forecasts for 2026
Technological Transformation and a Focus on Environmental Protection
Demand for “smart” buildings with integrated energy efficiency systems is expected to grow. Investments in ESG-certified properties can generate an additional 10-15% in returns.
Promising Segments
- Coworking Spaces in Residential Complexes
- Apartments for Digital Nomads
- Eco-Friendly Residential Projects and the Development of Co-Living Spaces
Conclusion
The European real estate market continues to offer a variety of opportunities for international investors. In 2026, Lisbon appears to be the most promising destination, combining high yields with relatively low tax burdens. At the same time, classic destinations such as Berlin and Barcelona remain attractive for conservative strategies.
Key factors for investor success in 2026 will be a thorough analysis of local tax changes, an understanding of migration trends, and competent portfolio diversification across different asset types and jurisdictions.
If you're planning to obtain a residence permit, invest in a country's economy, or purchase foreign real estate, we invite you to a consultation with our company. During a personal online meeting, we'll discuss your questions in detail and create a step-by-step action plan for you.