Is Foreign Investment in Real Estate Hurting Local Housing Markets in Europe?
Veronika Mamontova
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Frequently Asked Questions
Do foreign investors make housing more expensive in Europe?
Many locals believe so, especially in cities like Lisbon, Berlin, and Barcelona. Foreign demand can drive prices up, reducing affordability for residents.
Which European countries limit foreigners from buying property?
Countries like Denmark and Switzerland have long-standing restrictions. Others are adding taxes or requiring permits to balance the market.
Is it harder for locals to buy homes in tourist cities?
Yes. In popular destinations, foreign investment pushes up prices, and many locals are priced out or forced to rent further from city centers.
Are governments in Europe taking action against rising housing prices?
Yes. Some are introducing extra taxes for non-resident buyers, tightening regulations, or building more affordable housing for locals.
Can foreign real estate investment be good for the economy?
In some cases, yes. It boosts construction and tourism. But unmanaged investment can lead to housing shortages and price bubbles.