Old brightly coloured houses with balconies on the waterfront on a sunny day in summer in Porto, ... [+] Portugal

Real estate in major European cities has had a wild ride in 2019. Brexit was, in theory, going to be taking place toward the beginning of the year and all eyes were on cities outside of the United Kingdom to figure out where it would be the most financially beneficial to invest in a second home. But then the political decision-making dragged on for the rest of the year with signs that the deal wasnt going to be as favorable to Britain as what had initially been in the news, leading to an even greater pressure to purchase a home before the deal was done and its economic effects rippled through the European economy.

As a result some cities saw demand increase rapidly and the idea of finding a good investment became much more difficult to obtain. Going into 2020, I reached out to LeadingRE, a global consortium of 565 real estate brokerages across 70 countries, to find out what other cities were showing signs of real estate growth but hadnt yet surpassed the threshold for turning a profit.

Naples, Italy

Aerial view of Naples, in Campania region, southern Italy. (Photo by Salvatore ... [+] Laporta/KONTROLAB/LightRocket via Getty Images)

Always a popular destination for holiday-goers, Naples has seen a 15% increase in property sales over the past year. By being an hour away from Rome (by train) on the coast of the Mediterranean, with a warm climate and Capri and Ischia islands nearby, it has become a popular place to live over and above the more population-dense city of Rome. Prices start around $200 per square foot versus the approximately $315-per-square-foot starting prices in Rome.

The increase in demand represents something of a reverse in fortunes for the historic city of Naples, which is often overlooked for its northern counterparts, said Chris Dietz,executive vice president of global operations for LeadingRE. The comparatively low prices reflect the historicallysubdued demand here.

Megve, France

The city of Megeve, which hosted the 103th Tour de France in 2016 TDF / (Photo by KT/Tim De ... [+] Waele/Corbis via Getty Images)

Besides being the site of a Tour de France stage a few years ago, Megve has seen an influx of interest from several different European countries largely attracted to its ski resort identity as part of the Mont Blanc mountain range. For example, according to local agent Antonin Allard, buyers from Britain have increased from 5% to 15% over the past twelve months and those from Switzerland account for 25% of sales compared to 20% in 2018.

Property prices typically start under $500,000 for two-bedroom chalet-style condos or freestanding cottages. One sure sign of the surge in interest is the luxury Four Seasons hotel was just one of a several hotels that opened in the past year.

Szkesfehrvr, Hungary

Street musician playing in Szekesfehervar, Hungary

Dont be put off by the hard-to-spell name. This secondary market has a 17% increase in home sales when compared to 2018, largely thanks to a major upgrade to the rail link between Budapest and Szkesfehrvr. It is on the route between two popular recreational spots: Lake BalatonandLake Velence, the latter of which is known for its beaches.

The countrys economic prosperity and strong real estate growth make it an attractive option for those looking to invest, and were seeing increasing interest from across Europe for Szkesfehrvrs attractive stock, said Dietz. Investors also from neighboring Turkey are attracted to the 2,000-year history and culture as well as the favorable prices compared to other more well-known European coastal hubs.

Batumi,Georgia

An aerial photo taken on August 27, 2017 shows the Black Sea resort city of Batumi. / AFP PHOTO / ... [+] Vano Shlamov (Photo credit should read VANO SHLAMOV/AFP via Getty Images)

This port town is the third largest city in Georgia and home to the popular Black Sea Resort. At the moment there are no height restrictions on new buildings so developers and buyers alike are maximizing on the opportunity. According to data from Batumi Expert, new construction homes cost approximately $37 per square foot and the majority of buyers in this city are from overseas. An estimated 22,752homes (including single-family and condos) were built over 2018 to 2019 as a response to the increased demand.

With plenty of land available in Batumi and little restriction on development, new projects are popping up in the city to cater for the uplift in demand, said Dietz. Investors, also from neighboring Turkey, are attracted to the 2,000-year history and culture as well as the favorable prices compared to other more well-known European coastal hubs.

Porto, Portugal

City Porto (Oporto) at Rio Douro. The old town is listed as UNESCO world heritage. Portugal. Europe. ... [+] (Photo by: Enrico Spanu/REDA&CO/Universal Images Group via Getty Images)

Last years list had Lisbon as a good place to invest in a second home, but the growth has been so significant over 2019 that good deals on homes are harder to find. The next best place to look is Porto, where home prices are still 30% lower than Lisbon despite seeing a 15% increase in closed sales, according to Rita Ribeiro at INS Portugal. Demand has increased both because of the comparatively more expensive homes in Lisbon and because there has been a change in rental laws making it more favorable for landlords to make a profit.

Portugal is also one of the more lower-priced places to obtain a Golden Visa for EU citizenship. Ribeiro estimates home sales to foreigners has grown over the past three years from one out of ten buyers to one out of three.

Rotterdam, Netherlands

Rotterdam Skyline with Erasmusbrug bridge at sunset in morning in Rotterdam, Netherlands

After Amsterdam, this is the largest city in the Netherlands. Located on the River Maas, that traverses several European countries, Rotterdam is home to the largest port in Europe and sometimes referred to as the Manhattan on the Maas.

For those looking for a more urban place to invest, Rotterdam is still a good place to look (it also made last years list). As Erik Noordamat VOC International says, It is fast becoming a refuge for buyers who feel Amsterdam has become too expensive.

Prices here have increased about 10% since last year, with average sales prices at around $295 per square foot, though the average is about 20% higher for new construction homes.

More here:
The Best European Cities To Invest In For 2020 - Forbes