FHB Bank made an analysis to determine where investors should buy a holiday house: near Lake Balaton or in popular foreign vacation destinations. According to the results properties on the Montenegrin, the Bulgarian and the Egyptian seacoast cost the most compared to those in the inner county.
FHB Bank made an analysis to determine in which popular vacation destinations – at Lake Balaton, the Croatian, the Bulgarian, the Romanian, the Montenegrin, the Egyptian, the Spanish seacoast, at Lake Garda or Lake Boden – it is the most recommended to buy a holiday house as an investment. Holiday property prices are influenced by 3 main factors: the closeness of the natural waters appropriate for swimming, job opportunities offered by tourism, and building restrictions made with the aim of protecting the environment. According to the results of the analysis property prices at Lake Balaton are lower than the national and the international average; but excluding Budapest this area has the highest property prices in the country.
Properties Are Cheaper on the Croatian and Romanian Seacoast
Seacoast properties can be much more expensive than those in the inner areas in Montenegro, Bulgaria and Egypt. The former ones cost 90 percent more in Montenegro and 60 percent more in Bulgaria and Egypt. At the Croatian seacoast coastal properties cost 15 percent more than others, but in Romania they only cost less than 10 percent more.
Houses near Balaton Hold Their Value
The closeness of the sea is not the only thing that increases property prices: the closeness of sweetwater can have the same effect. Near the Italian Lake Garda houses cost 70 percent more than at inner Italian areas; and near Lake Boden located at the border of Austria, Germany and Switzerland properties cost 45 percent more. Holiday property prices are relatively the lowest (compared to the average local wage) in Spain and Italy: in the former country they cost a month’s wage per square meter. Holiday houses built on the seacoast or the lakeshore hold their value, thus they are good investments – properties at Lake Balaton included –, and these properties also kept their prices during the financial crisis.
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