Although 2020 turns out to be a challenging year for real estate investing, targeted areas around some of the largest European cities still have a high potential for growth.
I am Ofir Eyal Bar, a real estate investor with stakes in Western European countries and South Africa, and I would like to talk about some of the best 5 trendy neighborhoods which you don’t want to miss, in case you want to invest in real estate this year.
#1 University Quarter Area, Brussels
This Belgian area near Brussels is one of the places where people all around the travel, whether its for business or just for a vacation. With French and Flemish universities located there, the region had attracted a lot of emerging talents and new investments. Wine, spirits, and cigar shops are some of the main attractions, while chocolate makers like Jean-Baptiste Jonne are well-known for their shops. The diversity of the place is staggering. Chinese, Vietnamese, Thai, and plenty of other restaurants with quality Asian foods are very attractive for both local people and foreigners.
#2 Neukölln, Berlin
I’ve been personally investing in German real estate for years and despite being the most developed European countries, you can easily find new opportunities in places like Neukölln. Located in south-east Berlin, it was a no-man’s-land a decade, but cheap rents and gritty vibes have attracted Turks, Kurds, and Arabs. Smart restaurants, shack-like kebab shops, dive bars, underground galleries, commercial casinos, and plenty of other properties had been built along the way.
As a result, the area is a place full of new things to discover, and with affordable rents, it can be an ideal place for both foreigners and local people to spend their time. Painting, music, jewelry, clothes, vegan food, flowers, or home décor, there are attractive places for any taste. Real estate investors can profit from the fact there aren’t many hotels around the area and buy homes to rent. However, it is important to note that due to cheap rents, profit margins could be reduced.
#3 El Cabanyal, Valencia
Considered to be a “listed area of cultural importance”, El Cabanyal is located 5hm east of the center and had gone through many real estate changes since the early 2000s. With a traditional vibe and a traditional personality, it is a great place where tourists hang out. I’ve visited the area 4 years ago and I was amazed by the new shops and bars, which were adapted to the vernacular architecture. Two museums, the Mercado del Cabanyal, El Drac del Cabanyal, and plenty of other attractive places are what foreigners want to see there.
Cheap meals and many hipe places for a drink make Cabanyal an interesting place to hang out. Due to its affordability, I believe it’s just another place where potential growth for real estate is still possible, even though Spain had been one of the countries that have been heavily affected by COVID-19. The government had already started to re-open the economy and over the upcoming months, things should get back to normal levels.
#4 Powisle, Warsaw
Moving towards the East, Poland is one of the countries that had witnessed exponential growth since the fall of Communism. At the same time, it should be an attractive place for investors during a time of uncertainty, if we consider it was the only European country which had not experienced a recession in 2008. Located on the left bank of the Vistula, the Powisle district is the place where a carnival takes place each summer. Riverboats and pubs are part of the vibrant spirit of the area.
From a historical point of view, Powisle was on the frontline in the uprising against Nazi Germany. Locals had managed to preserve historical sites and are wearing the scars left by the history with pride. Due to its geographical location (near the capital city of Poland, and in Eastern Europe), Powisle is both an attractive place as well as a cheap one, if we compare it to the biggest cities in the West. Also, strong regulation is creating a safety net for any type of investor, including those interested in real estate.
#5 Dorćol, Belgrade
Located in between the touristic area of Skadarlija and the huge Kalemegdan Fortress, Dorćol is one of the most interesting neighborhoods in Serbia. With an architecture predominantly from the 20th century, this is a place for classic bars, mixed with new openings. Art centers, street art, industrial buildings, and funky little cafes, can be found there, suggesting a great degree of diversity in the area.
The combination of both traditional cultures and influences from the West make Dorćol an area with high touristic potential. Its vicinity to the river Danube is another great advantage that must be mentioned. It’s worth mentioning the country is not part of the European Union, but that does not mean Latin influences are not present. As valuations in Western Europe are high, real estate investors should continue to migrate towards the East, and Serbia could be one of their target countries.