(Adnkronos) – In a particularly uncertain economic context due to a series of financial and geopolitical factors, investing in real estate remains one of the most stable choices, especially for those who want an investment in the medium to long term. But which are the European markets where real estate investments are most profitable? From a recent report by Global Property, an important international research company in the real estate sector, it emerges first of all that investing in properties produces an interesting return, compared to other forms of investment. Among the European countries where investing in real estate pays the most there is also Italy, which ranks third, behind Latvia and Ireland, on the second and first step of the podium respectively. In detail, in Ireland the real estate yield is 7.85%, in Latvia 7.81% and in Italy 7.67%. In addition to the first three markets, the Netherlands also produces a certain attraction for investors thanks above all to its particular economic and political stability.
How is the rate of return calculated and what does it represent? The return (yield in English) indicates the profit that derives from a real estate investment in relation to its market value. It is calculated by the ratio between the gross income generated by renting a property and its market value. The higher the yield, the greater the profitability of the investment. There are several factors that influence the return, including the rate of return itself, the trend of the local real estate market and the outlook for the future. Notably, Global Property assigns a rating of one to three stars to long-term real estate returns. An evaluation that takes into account market stability, economic prospects and other elements that may affect the profitability of the investment over time. Investing in real estate, in fact, does not only mean quantifying the economic return in the short term, but also analyzing the opportunities and prospects offered by the market today and in the future. In this sense, in Global Property’s analysis, Ireland had the highest rating in terms of yield, but only two stars for long-term investments. Italy, on the other hand, had a very good rating in terms of yield and three stars for long-term investments, which means it has a certain attractiveness at the level of real estate investments both in terms of immediate returns and future prospects. Furthermore, this positive assessment seems to go against the current compared to the 4% contraction in demand for real estate recorded in 2023 in our country.
