Shifting focus from the ultra-luxury market to high-potential, affordable investments in Eastern Europe is a smart move. The region is currently one of the most dynamic for real estate, with several cities offering a compelling mix of low entry prices and strong growth fundamentals . Based on the latest data, here are three of the best cities for finding affordable apartment investment deals in 2026.
🏆 Top Investment Picks for 2026
To help you compare at a glance, here are the key metrics for each recommended city.
| City | Avg. Price (€/m²) | Typical Rental Yield | Key Advantage | Best Investment Strategy |
|---|---|---|---|---|
| Plovdiv, Bulgaria | ~€1,500 | 5% (long-term) Up to 9% (short-term) | Very affordable prices & high rental demand | Short-term/Airbnb or student rentals |
| Tbilisi, Georgia | ~$1,200-$1,700 | 8-10% (long-term) Up to 12% (short-term) | Highest yields & fast residence permit | Long-term rental for strong passive income |
| Bucharest, Romania | €2,000 – €3,000 (city centre estimate) | 5-7% (estimate based on region) | Europe’s best population growth projection | Long-term rental in growing residential areas |
🇧🇬 1. Plovdiv, Bulgaria: The Cultural Hub with Industrial Strength
Often overlooked in favour of the capital Sofia or the coastal Varna, Plovdiv is a standout candidate for investors seeking value. It’s one of Europe’s oldest cities but has a modern, booming economy.
- Affordable Entry Point: With average prices around €1,500/m², a standard 70m² apartment can be found for €80,000 – €100,000. This is significantly cheaper than other Bulgarian hubs .
- Strong Rental Yields: You can achieve solid returns here. While standard long-term rentals yield around 5%, the real potential lies in short-term tourist rentals (like Airbnb) and student housing, which can push gross yields as high as 9% .
- Economic Backbone: Plovdiv is a major economic engine, hosting Bulgaria’s largest industrial cluster with over 200 companies. This, combined with a growing population of students and young professionals, creates consistent rental demand .
- Best Neighbourhoods: For short-term rentals, the historic Old Town and the artistic Kapana district are prime locations. For long-term lets with capital growth potential, areas like Kamenitsa are worth exploring .
🇬🇪 2. Tbilisi, Georgia: The Yield Leader with a Residence Permit Bonus
Tbilisi offers a completely different value proposition. It’s not just about the apartment; it’s about the overall return and the benefits that come with ownership.
- Exceptional Rental Yields: This is Tbilisi’s main draw. Investors can achieve impressive 8-10% returns on long-term rentals and up to 12% on short-term lets. The payback period on a property can be as short as 10-12 years .
- Low Entry and Holding Costs: Prices in new developments range from $1,200 to $1,700/m², which is very competitive. Furthermore, if you own the property for more than two years, the capital gains tax is 0% .
- Fast-Track Residence Permit: A real estate purchase of $150,000 or more qualifies you for a residence permit, a process that takes just one to three months. This is a significant advantage over other European cities .
- Liquidity: Apartments in Tbilisi are considered highly liquid, typically selling within one to three months, giving you a flexible exit strategy .
🇷🇴 3. Bucharest, Romania: The Demographic Powerhouse
Bucharest is a different kind of play—one focused on long-term capital growth driven by overwhelming demographic trends. It has recently entered the European stage as a city to watch.
- Unmatched Demographic Score: In a major 2026 real estate report, Bucharest received the highest score (2.53) of all 30 cities analysed for projected population growth. This is the single most important factor for long-term rental demand and property price appreciation .
- Rising International Profile: Bucharest is gaining visibility among international investors and was ranked 30th in Europe for investment attractiveness by PwC and ULI, putting it on the radar alongside more established capitals .
- Market Context: While average prices are higher than in Plovdiv or Tbilisi (and exact figures vary by neighbourhood), the city’s growth trajectory makes it ideal for investors focused on capital appreciation. Look for residential areas popular with the growing young professional class .
💡 Key Considerations Before You Invest
Before making a decision, keep these broader European trends in mind:
- The Living Sector is Booming: Across Central and Eastern Europe, residential assets are currently the most attractive sector for investors. Concepts like Build-to-Rent (BTR) and student housing (PBSA) are expanding rapidly .
- Demographics Drive Demand: As seen in Bucharest’s high score, population growth and the migration of young people to cities are key themes. This makes residential, student housing, and healthcare-related real estate particularly promising .
- Watch for Policy Changes: European governments are increasingly using property regulation as a policy tool. Be aware of potential changes to short-term rental rules, taxes, or residency programs in your chosen country .
To sum it up, your choice depends on your goal:
- For maximum cash flow and a fast residence permit, Tbilisi is hard to beat.
- For a balanced, affordable entry into the EU with great tourist potential, look at Plovdiv.
- For a long-term, demographic-driven growth play in a rising European capital, consider Bucharest.
I hope this detailed comparison is helpful. Does one of these cities stand out to you? I can provide more specific information on any of them, such as the best neighbourhoods or the legal steps for purchasing.