PROPERTY TYPES

Before you think about the type of property you want, you must ensure that you know what you will need from your future home. How much space will you require? If you have children and want friends and family to visit regularly then you shouldn’t choose an apartment, while if you crave privacy, search for a rural home or spacious villa; a young couple keen to be in a central hub should obviously look for a city centre apartment.

Other considerations that will affect the type of property you buy include the heating and air conditioning situation. Eastern Europe can get bitterly cold during the winter, but be aware that you are unlikely to get connected to gas outside of major conurbations, so electric and oil central heating will be the best you can expect. Air conditioning is worth installing, as in summer temperatures can be high. Look at the parking and access situation too. Few city properties come with guaranteed parking and spaces can be expensive to purchase, which may be a problem if you intend to take your car. If you want to buy in a rural area, are the roads accessible enough for you and will they be passable in winter? These are all considerations that it’s worth spending a few moments looking at before you settle on a certain type of property.

Apartments

Apartments are one of the most in-demand property types in Eastern Europe, with the vast majority of the urban population living in them. Although the term ‘apartment’ may conjure up the image of communist concrete monstrosities – and some of these are up for sale – these aren’t what a western buyer is looking for, or what you’ll be offered. Generally speaking, for investors, city apartments are the best option as they are eminently more rentable than other property types. Ideal for business people looking for a long-term let, and also good for short-term rentals and those looking to spend a long weekend in Prague or Budapest, they can generate a healthy rental income. On the Bulgarian coast and Turkish Riviera there are also a number of newly-built apartment developments that can be picked up for under £40,000.

Apartments tend to be cheaper than villas or houses, offer a high quality finish, have lower running costs and, as with Florida and Spain, if part of a development, will come with facilities such as a gym or pool. Exterior maintenance will be carried out for you, there will also be neighbours to keep an eye on things and many developers now offer buyers guaranteed rental opportunities for many months of the year. What’s more, apartments come with the benefit that you can ‘lock and leave’ them. However, be prepared for less space and less privacy.

There is also the option of choosing a period apartment. Budapest is a good example of this, with a number of turn-of-the-century buildings transformed into modern apartments. With distinctive architecture, running from Rococo to Art Deco or Baroque, all are centrally located and many contain unique frescoes and balconies.

Villas

Not every Eastern European country will have the right climate, demand or advanced property market to be able to offer a newly-built villa development. However, this doesn’t mean there’s a shortage on the market, with Turkey and Croatia both full of fantastically-located, modern or traditionally styled villas. Generally found on the coast, this is the perfect option for those seeking a holiday home that can generate a healthy rental income from holiday makers.

Villas have the advantage of offering plenty of space and privacy, with the option of having a pool installed, as well as providing you with private gardens. A number are located in purpose-built developments with onsite amenities and they’re popular with Brits, offering space from neighbours and features such as private garages. Be prepared to pay a premium for a coastal spot.

Rural properties

There are numerous rural properties for sale in Eastern Europe, and this can mean anything from a tumble-down cowshed to a custom-built period house on the shores of Lake Balaton. There is a strong custom of Eastern Europeans owning a second home in the country, so there are many on the market, although unlike the western idea of a weekend in the country, this can mean anything from living in luxury to staying in a wood cabin with no electricity. Consequently, if you are willing to put some DIY time in, it is possible to pick up a rurally-located home for next to nothing. Montenegro is a good example of a healthy rural property market. Most properties sold are period, stone-built buildings ripe for renovation. Similarly in Croatia the in-demand property is a traditionally styled, stone-built cottage, although availability is very low.

Historic properties

Eastern Europe has a rich cultural history and part of this historical heritage is manifested in the number of ducal seats and magnificent manors scattered around the country. Fancy buying a Czech castle? If you have a couple of million to spare then you shouldn’t be short of options.

Most have fallen into disrepair as the family fortune has dissipated, although given the price tag, the majority are bought as businesses and end up transformed into hotels or spas. Transylvania offers a number of gothic castes and chateaux that are ideal for renovation and they may well prove to be popular in the future, as they are located in the mountainous ski areas. For those on a smaller budget, many of Eastern Europe’s larger cities offer traditional apartments with period features in their old town areas.

Newly-built properties

As the property market in Eastern Europe has got hotter, a number of newly-built developments have sprung up to cater for the demand. These are particularly prominent on Bulgaria’s Black Sea Coast. The market in Montenegro has seen a similar phenomenon occur, although these developments are all restricted to three storeys. For more details see the section below on new builds vs resales.

Land

Thanks to the explosion of interest in Eastern European property, you will generally find land more readily available inland than on the coast. Investors have been increasingly attracted to plots of land thanks to the low prices that allow them to build their dream property. Land is also a great investment. In Romania, some investors have bought plots and, rather than developing them, have kept them untouched, selling them on after land prices have quadrupled. Most countries can offer inland plots, although be aware that the greatest restrictions foreigners now face are on the purchase and ownership of land – in some countries it is forbidden altogether.

Commercial

For the budding entrepreneur there are many opportunities to purchase commercial property. Most commercial opportunities are in popular coastal resorts or major cities and property can range from shops and hotels to offices and workshops. Be aware that the building will need to be licensed for commercial usage and if purchasing a business, do your background research and ensure the company is still functioning and that you’re not buying a dud.

NEW BUILDS VS. RESALES

Historically, as rural depopulation and increased affluence has resulted in Eastern Europeans opting for newly-built, better quality homes to replace those dating back to the communist era, foreign DIY enthusiasts have been left with a plethora of dream homes. However, pressure has been put on the market as many locals have also begun to show an interest in restoration. Nevertheless, now is a good time to look east for your renovation project, as many Western European countries – such as France and Italy – are experiencing a shortage of rural homes due to high demand; what’s left carries an extortionate price tag. Eventually, the same scenario will hit Eastern Europe as increasing numbers of overseas buyers plunder the stock of dilapidated buildings, causing price hikes. This is likely to affect areas such as those around ski resorts or in proximity to major towns and cities; the real wilderness is unlikely to dry up for many decades.

With local demand vying with foreign demand in many countries for the purchase of newly-built apartments, brand new property is regarded as a safe investment – except where supply exceeds demand, a scenario currently being witnessed in the tiny country of Slovenia. There are plenty of developments situated in the Eastern region, most located in cities or along the coast, and while prices are still affordable, if space restrictions and demand continues to be an issue, you will see prices rocket.

Pros and cons

Renovating

• There is plenty of choice and prices are low.
• You can build a home to suit your purposes and needs.
• You will have a unique, characterful property that will be popular for rentals (depending on location).
• You’ll generally be looking at more space – both inside and out.
• Cost of labour is generally 33% cheaper and materials 66% cheaper than in the UK. However, in some countries, such as Bulgaria, costs are nearly on a par with the UK.
• It is essential you consider the work and cost of bringing a property up to western standards of living: the connection of utilities and the creation of a passable road may be required.
• You’ll need to secure planning permission – something that was virtually guaranteed in the days before EU legislation came into play, but rules have been tightened.
• Factor in a cost of between €400–€700 per square metre for renovation.
• Remember that this will be a long-term process and may mean months of living on a building site, and it can be a stressful process.

New build

• It will be fully habitable and ready to live in and you will have the sale completed quicker.
• Less stress and hassle.
• The build quality for a newly-built property will be higher, and you will most likely be provided with extras such as a fitted kitchen and all utilities connected.
• Energy efficiency and insulation will be better.
• Less maintenance will be required.
• Many come with onsite amenities, such as a gym or swimming pool.

• Unlike an older property, it will probably lack character and is unlikely to have a spacious, mature garden.
• You may not feel you have sufficient privacy, as it’s more than likely that you will be in a development.