More Americans are snapping up homes in Europe, new report says

As the US dollar and euro reach parity, many American homebuyers are taking their money overseas. This currency play made buying a property in Europe a bit less expensive and lured US residents looking to invest in a second home. 

Major EU destinations such as Paris, Venice, Barcelona, and Tuscany have always been especially popular among American homebuyers. This year, Mallorca, Sardinia, and South of France have joined the list of the top European places for foreign investors, according to the report from Knight Frank. 

“In the past US interest has been focused on cities offering culture and connectivity from Rome to Paris and from Barcelona to Florence but we’re now seeing US buyers target traditional sunbelt areas which is a departure from the norm,” said Mark Harvey, Knight Frank’s Head of International. 

For the first time in more than 20 years, the two most traded currencies, euro and the US dollar, share the same value. This parity allows American buyers to enjoy a 16 percent discount when investing a property in any of the 19 Eurozone member countries. In addition, home prices in major European cities such as Paris and London went up only 5 percent year-over-year. By contrast, the most competitive US markets saw a 30 percent surge in the asking prices, The Real Deal reports. 

After two years of closed borders, American buyers finally got the opportunity to purchase a second home in Europe. Investing in EU real estate is a great way to hedge against rising inflation, prepare for retirement abroad, and receive a long-term residency in one of the most sought-after European spots. The Verus Europe team is here to help you navigate the residency by investment programs and, with the help of local brokers, find the home of your dreams in Europe. Reach out!

Resources:

“Europe, a bargain for US homebuyers,” by Kate Everett-Allen (Knight Frank, 2022)

“As the U.S. Dollar Surges, American Buyers Splurge on European Homes,” by J.S. Marcus (The Wall Street Journal, 2022)

“The 6 most popular European destinations for Americans to buy homes as the strong dollar boosts US wealth overseas,” by Alcynna Lloyd and Jason Lalljee (Business Insider, 2022)

“Cheaper by the euro: US buyers snap up European homes,” by TRD Staff (The Real Deal, 2022)