Resort Real Estate in Southern Europe: Where Investments Are Still Profitable

Investing in resort real estate in Southern European countries remains one of the most attractive opportunities for preserving and increasing capital. This region is known for its mild climate, well-developed tourist infrastructure, and stable demand for rental housing. However, investors face an important question: where is it most profitable to invest in real estate right now to ensure high returns and investment stability? In this article, we will examine the promising countries in the region, real estate market trends, and average property prices.
Spain: A Classic Investment Choice
Spain holds a leading position among Southern European countries in terms of resort real estate attractiveness. The tourist season lasts almost all year, especially in the southern regions of the country. In recent years, property prices have been steadily rising, and rental income provides owners with a good return.
The most in-demand locations are the Costa Blanca, Costa del Sol, the Canary Islands, and the Balearic Islands. In Barcelona and Madrid, real estate is more expensive, but on the coast, more affordable options can be found. The average price per square meter in Spain ranges from €2,500 to €3,500, but in resort areas, it can reach €5,000 per m².
For example, in Marbella, apartment prices start at €200,000, while luxury villas cost €1 million and above. More affordable options can be found in Torrevieja, where seaside apartments start at €100,000.
Portugal: A Profitable Real Estate Investment
Portugal, particularly the Algarve region, is becoming increasingly popular among investors. This is due to moderate property prices, a mild climate, and the possibility of obtaining a residence permit for property purchases starting at €280,000. Prices in Lisbon and Porto are higher, but coastal towns like Lagos or Faro offer more affordable options.
The average property price per square meter in Portugal is around €3,350, and apartments in popular areas can be purchased for as little as €150,000. In the Algarve, villas are sold for €400,000 and above, while more modest houses can be found for €250,000.
Greece: Attractive Prices and Growth Potential
Greece remains an interesting destination for real estate investment. Compared to other Southern European countries, property prices here are still relatively low but are increasing every year. Additionally, investors can take advantage of the “Golden Visa” program, obtaining a residence permit for real estate purchases starting at €250,000.
The most popular investment regions include Crete, Rhodes, and Corfu. The average price per square meter in Athens is around €2,700, while on the islands, prices range from €1,500 to €3,000 per m². A seaside apartment can be purchased for as little as €150,000, while houses and villas start at €300,000.
Cyprus: A Stable Real Estate Market
Cyprus remains popular among foreign investors due to its well-developed infrastructure, attractive citizenship programs, and high property liquidity. The most sought-after cities for real estate purchases are Limassol, Paphos, and Larnaca.
The average price per square meter in city centers is €2,850, while apartment prices in Limassol start at €200,000. Coastal villas are priced at €500,000 and above. Investing in Cyprus real estate is a profitable option, as rental demand remains consistently high among tourists and expatriates.
Montenegro: A Growing Market
Montenegro has recently become one of the fastest-growing real estate markets. This is due to low taxes, a simple property purchase process, and a growing tourist influx. Compared to Western European countries, property prices here are still more affordable.
The average price per square meter in Budva and Kotor is around €2,000, while apartment prices start at €100,000. Villas and houses in popular resort areas can be purchased for €250,000 and above, making Montenegro a good option for long-term investment.
Bulgaria: The Most Budget-Friendly Option
Bulgaria remains one of the most affordable countries in Europe for buying resort real estate. Here, a seaside apartment can be purchased for as little as €50,000, while a house with land costs from €150,000. The most popular resorts are Sunny Beach, Golden Sands, and Varna.
The average price per square meter is around €1,650, which is significantly lower than in other Southern European countries. Additionally, Bulgaria attracts investors with low maintenance costs and low property taxes.
Resort Real Estate Market Trends in Southern Europe
In 2025, experts predict a further increase in property prices in Southern European countries. In Spain and Portugal, prices are expected to rise by 3–4% per year, while in Greece and Montenegro, property values may grow even more.
Key factors influencing the real estate market:
• Growth in tourism and rental demand.
• Development of infrastructure in coastal areas.
• Government support programs for foreign investors.
Eastern European markets, such as Bulgaria and Montenegro, remain promising for those looking for affordable options with price appreciation potential.
Conclusion: Where Is It Most Profitable to Invest?
The choice of a country for resort real estate investment depends on the investor’s budget, goals, and preferences. If high liquidity and market stability are a priority, Spain and Portugal are excellent choices. Greece and Cyprus offer favorable conditions for obtaining a residence permit, while Montenegro and Bulgaria are suitable for those looking for more affordable investments with growth potential.
In any case, before purchasing real estate, it is recommended to analyze the market, consider potential maintenance costs, and study the legal aspects of the transaction. Resort real estate in Southern Europe remains a promising investment that can generate stable income and appreciate in value.