gr.euronews.com
Lithuania and Hungary Top Real Estate Investment Markets in Central and Eastern Europe for 2025
A new study by 1st Move International ranks Lithuania and Hungary as top real estate investment locations in Central and Eastern Europe for 2025 due to high rental yields and moderate taxes, while Belgium, France, and Greece offer lower returns; Spain and Portugal are most popular for buyers based on Google searches.
- How do tax rates and rental yields in top-performing countries compare to those in less favorable locations?
- High rental prices (over 170% higher than 2015 in Lithuania) and moderate taxes contribute to these high returns. In contrast, Belgium, France, and Greece show lower returns due to high transaction costs and taxes; France's property prices even decreased by 4.6% year-on-year.
- What Central and Eastern European countries offer the highest return on real estate investment in 2025, and what factors contribute to this?
- Lithuania and Hungary offer the highest return on investment in real estate in Central and Eastern Europe in 2025, according to a 1st Move International study. This is based on factors including property tax rates, rental income tax, and gross rental yield. Lithuania leads with an average rental yield of 5.65% in Vilnius.
- What are the potential long-term implications of the current real estate market trends in both high-performing and less-favorable locations for both investors and residents?
- The increasing property values in Lithuania (up over 10% in Q2 2024) and other CEE countries like Hungary (9.8% increase) and Poland (17.7% increase) suggest continued investment potential. However, high demand in popular destinations like Spain and Portugal is causing housing shortages for locals.
Cognitive Concepts
Framing Bias
The article frames the information around investment potential, emphasizing high return rates and low tax burdens. While this is relevant, it creates a focus on financial gain that overshadows potential downsides and social implications. The headline, if there was one, likely emphasized the 'hottest' markets. This framing might attract readers interested in profit but neglect the complexities of the real estate market.
Language Bias
The article uses terms like "hottest" and "best" which are subjective and emotive. More neutral language would improve objectivity. For example, instead of "hottest," terms like "high-performing" or "strong" could be used. The use of the word 'hottest' could be considered somewhat sensationalist.
Bias by Omission
The article focuses heavily on investment returns and tax rates, neglecting broader societal impacts of real estate investment, such as affordability crisis in Spain and Portugal. While acknowledging the limitations of space, a brief mention of these consequences would provide a more balanced perspective.
False Dichotomy
The article presents a dichotomy of 'best' and 'worst' investment locations, oversimplifying the complex factors influencing real estate markets. Many countries offer various niches for investors based on risk tolerance and specific goals. This binary categorization ignores this nuance.
Sustainable Development Goals
The article highlights that the increasing popularity of real estate investment in countries like Spain and Portugal has led to a housing shortage and unaffordability for locals. This exacerbates existing inequalities in access to housing and contributes to a widening gap between the wealthy and the less fortunate.