- A new study ranks the best places to purchase property in prime areas based on metrics such as property prices, rental prices, rental occupancy rates, cost of living, and average income.
- Amsterdam tops the list for property investment in prime areas with the highest total index strong rental potential with a 72% occupancy rate.
- Monaco ranks third with having the highest rental and sale prices among the top cities.
- Barcelona has the lowest property price per square meter and has a high occupancy rate of 75%.
Cryptorush conducted an in-depth analysis of 100 cities across Europe to determine the best places to purchase property in prime areas. The ranking is based on a total index that considers several key factors: property prices, rental prices, rental occupancy rates, cost of living, and average income. To create the index, data was collected on the average price per square meter for properties in the most desirable locations within each city, as well as rental prices for an 85m² apartment and the rental occupancy rate in these prime areas. The cost of living and average income were included to understand the economic environment of each city. Each factor was weighted to calculate a total index score for each city, which helped rank them from the most to least attractive for property investment.
Here are the results summed up:
Amsterdam tops the list for property investment in prime areas with a total index of 0.681. The property price per square meter is at €9.3K and the city offers strong rental potential with a 72% occupancy rate for apartments in its most desirable locations. The moderate cost of living and decent average income help balance out the investment costs. These factors combined make Amsterdam the top city to buy a house in prime areas.
London secures the second spot with a total index of 0.646. Property prices in prime locations are significant at €15.8K per square meter, but this is matched by high rental prices of €4.6K. The city’s rental occupancy rate stands at 61%. With higher cost of living and property prices, the average income still supports these costs. London’s high rental income potential makes it a compelling investment for prime area properties.
Monaco ranks third with a total index of 0.628. It has the highest rental and sale prices among the top cities, driven by its exclusive and desirable locations. Property prices are extremely high at €76.6K per square meter, and the rental occupancy rate is lower at 46%. Substantial rental income potential makes Monaco a profitable place to invest in luxury properties.
Rome is fourth with a total index of 0.620. Property prices in prime areas are relatively affordable at €6.6K per square meter, coupled with a high rental occupancy rate of 74%. Rental prices are moderate at €2K, and the cost of living is lower. Rome offers a balanced investment opportunity, making it attractive due to its strong rental potential at reasonable costs.
Lisbon ranks fifth with a total index of 0.605. The city features affordable property prices in prime areas at €6,2K and a high rental occupancy rate of 75%. Having lower rental prices at 1.7K, Lisbon’s overall affordability and high rental demand make it a strong contender for investment in city center properties.
Berlin comes in sixth with a total index of 0.604. Property prices in prime areas are €7.8K per square meter, with a high rental occupancy rate of 71% and moderate rental prices at €2.3K. The city’s decent average income balances the investment costs, making Berlin a competitive market for prime property investment due to its balanced costs and strong rental potential.
Barcelona is seventh with a total index of 0.601. Property prices in prime locations are at €5.6K per square meter, and the city enjoys a high rental occupancy rate of 75%. This combined with rental prices of €1.6K, make Barcelona an attractive investment option for prime area properties due to its high rental demand and reasonable costs.
Zurich ranks eighth with a total index of 0.599. Property prices are high at €23.8K per square meter in prime areas, and the cost of living is significant. However, Zurich’s high average income at €7.3K and rental prices at €4K in prime areas justify the investment. The rental occupancy rate is 61%, supporting Zurich’s profitability for investors targeting prime properties with strong rental potential.
Valletta takes the ninth spot with a total index of 0.598. The city offers property prices of €7.5K per square meter in prime areas and a high rental occupancy rate of 75%. Rental prices are lower than in the rest of the top cities at €1.6K but the lower cost of living and average income make investment costs manageable.
Paris rounds out the top ten with a total index of 0.593. Property prices in prime areas are high at €11.8K per square meter. The city offers a moderate rental occupancy rate of 66% and substantial rental prices of €3.1K. With high rental prices and an average income of €2.8K supporting these costs, Paris becomes a compelling investment destination for prime properties due to its significant rental income potential.