Where are the most profitable up-and-coming destinations for expats?
After a long period of travel uncertainty, many people are dusting off their plans to relocate abroad.
While countries like Spain, France and Portugal have long been popular choices with overseas buyers, other European countries are now starting to give them a run for their money.
Bethany Hemsley, Overseas Property Specialist at Property Guides, discusses some of the most up-and-coming destinations for expats in 2021.
Reykjavik, Iceland
Volcanoes, glaciers and geysers – not only is Iceland a fascinating place to live geographically, but it also ranks fairly highly for overall quality of life. The capital Reykjavik is vibrant, fun and bursting with culture. There are plenty of bars and restaurants as well as more than 60 museums, exhibition spaces and galleries. The city’s cultural calendar is very full too, with numerous festivals throughout the year.
It’s no secret that Iceland can be expensive, and the average cost of living for a single person is definitely higher than some other European cities. But the salaries are also generally higher, with workers in Reykjavik earning on average over £1,000 more each month than those in Madrid or Rome. Basic utilities are also some of the cheapest in Europe, which is largely down to almost all electricity being hydropower or geothermal.
If you’re looking for a good investment, Reykjavik is the place to look. Average property prices in the city are around £3,609 per square metre and there is plenty of opportunity to make a nice income from rentals. The average monthly rent in the city is around £1,100 for a one-bedroom flat and there is a strong market for Airbnb rentals too.
Helsinki, Finland
Who wouldn’t want to live in the happiest country in the world? Finland has come top of Gallup’s World Happiness Report for four consecutive years based on factors like GDP per capita, social support, life expectancy, freedom to make life choices, generosity, and corruption levels.
Finland also boasts brilliant schools, universal healthcare and was named the safest country in the world in the 2017 World Economic Forum Report.
The capital Helsinki is a fantastic place to experience the wonders of Finland. It is a modern city with great transport links to the rest of the country as well as the rest of Europe and beyond. The city’s housing is of high-quality with prices averaging around £7,048 per square metre, but like Reykjavik, salaries are also relatively high.
In terms of the rental market, you’d be looking at around £862 per month to rent a one-bedroom flat.
Tallinn, Estonia
A real-life fairy-tale, Tallinn is the magical capital city of Estonia. Its medieval Old Town proudly boasts UNESCO World Heritage Status and is one of Europe’s best-preserved walled cities.
Tallinn is the definition of ‘up and coming’. Although at face-value it looks frozen in the past, Tallinn is actually a thriving tech-hub and is extremely digitally advanced, with the third-most start-ups per person in the whole of Europe. The city also has seven ‘unicorns’ which are start-ups with a value over $1 billion (£720,000).
What’s more, the cost of living is really affordable. According to Expatistan, Tallinn is cheaper to live in than 63% of cities in the world. It’s easy to see why when the average monthly cost to rent a one-bedroom flat is just £402 and public transport is free.
When it comes to buying property, the market in Tallinn has remained remarkably resilient during the Covid-19 pandemic, with prices rising by around 4.9% in 2020. Nonetheless, average property prices are still affordable at around £1,799 per square metre.
Gdansk, Poland
If the £1.89 pints don’t convince you to move to Gdansk, then maybe the rich history, stunning architecture and fast-growing economy will.
The beautiful port city of Gdansk is becoming an increasingly popular destination for expats. Grand, elegant buildings, fascinating museums and amber shops line the streets which open out onto thriving waterways. Here you’ll find a plethora of seafood restaurants as well as quaint dockside bars and cafes.
Similarly to Tallinn, Gdansk’s job market is at an exciting point, with numerous start-ups, however salaries are not as high as in other European cities. Nonetheless, the overall cost of living is also very cheap – expats working remotely for companies elsewhere will find they can afford much more in Gdansk than in many other Western European cities.
This low cost of living is also reflected in property prices. The average home in Gdansk costs just £1,650 per square metre.
