If you want to buy a cheap house abroad in 2023 with a small budget, the European real estate market promises to bring you many investment opportunities.

The value of Europe's housing market has been growing for almost a decade. According to Financial Times, house prices in Europe fell quarterly for the first time since 2015, a decrease of 1.5% in the last three months of 2022. In addition, with the dollar soaring and the euro dropping in value due to the pulsation during the Ukraine crisis, Europe's housing market has become more affordable to international investors worldwide.

In this article, we will list the five cheapest countries to buy a house in Europe and summarize some forecast information about the economic growth of some countries in 2023.

1. Portugal

European house prices in 2023 are on a downward trend, while Moody's Real Estate experts predict that house prices in Portugal could stabilize at 1% or up to 3%. Buying real estate in Portugal will be a profitable investment and an opportunity to guarantee a "safe haven" in a peaceful European country.

According to data from the Instituto Nacional de Estatistica (INE), house prices in Portugal as of November 2022 are €1,449 ($1,570) per square meter. Prices vary depending on the location of the property.

• Lisbon Metropolitan Area median house price is €1,929 ($2,092) per square meter.
• The Algarve, known for its Mediterranean beaches and golf resorts, has the most expensive home prices in Portugal, with a median house price of €2,009 ($2,179) per square meter.
• In the Azores Islands median house price €1,079 ($1,170) per square meter.
• The lowest house price in Alentejo, the average at the end of 2022, is €996 ($1,080) per square meter.

As you can see, the cost per square meter of real estate in Portugal is considerably lower than in other EU countries, making it a great option for those looking to buy a home in Europe at an affordable price.See more: Buying Portugal Real Estate - Answering All Your Questions - An Ultimate Guide: Tips, Tricks, More!

2. Greece

Assos village on Cephalonia, Greece I Getty

Greece is not only attractive to foreign tourists because of its beautiful scenery, architecture, and culture. In recent years, the demand to buy houses in Greece from foreigners has been increasing sharply. According to a recent report by Global Property Guide, in the first three quarters of 2022, the total value of property purchases by foreign buyers accounted for 80% to 85% of all real estate purchases in Greece. Besides, according to the report, Greece is one of the cheapest countries to buy a house in Europe, with an average price of €1,258 per square meter.

In the context of increasing demand for houses from foreign buyers, house prices in Greece continue to rise sharply, mainly in major cities like Athens and Thessaloniki-Greece's second-largest city. According to SPI data, in the first quarter of 2023, house asking prices were highest in the southern suburbs of Athens at €3368 per square meter and lowest in Florina at €624 per square meter.

The housing market is also driven by economic performance, which is expected to grow by 6% in 2023. Additionally, the country's Golden Visa program has been successful in attracting foreign investors. While these factors make Greece an enticing option for purchasing a home, it is important to note that historical data reveals that the country's housing market has experienced a crash in the past and may be heading towards one due to rising energy costs and borrowing costs.

See more: 12 Best Places to Live or Retire in Greece Comfortably

3. Italy

Italy is a dream destination for many people, and for a good reason. It offers a variety of beautiful landscapes, rich culture, and delicious cuisine to enjoy. If you're considering buying a house in Europe, Italy should be at the top of your list.

According to a recent report by the European Commission, Italy offers some of the most affordable real estate options in Europe. The average house price in Italy is around €1,800 per square meter, much lower than the EU average of €2,900. Of course, prices vary depending on the location and the property's condition.

The asking price for the property for sale was highest in the Trentino Alto Adige region, with €3,138 per square meter. On the contrary, for a property for sale in the Calabria region, only €923 per square meter is requested, the lowest value in Italy.

Whether you want to live in a cozy apartment in a historic city, a rustic farmhouse in the countryside, or a modern villa by the sea, you can find your dream home in Italy without breaking the bank.

See more: Real Estate INVESTMENT Italy.

4. Croatia

If you're looking for an affordable and fantastic place to buy a house in Europe, you should check out Croatia. The report reveals that Croatia has the continent's most economical average house price, at only €1,379 per square meter. That's a bargain compared to other popular and expensive destinations like Spain, Italy, or France, where you'd have to shell out a lot more for a gorgeous home with a breathtaking view of the sparkling sea, the majestic mountains, or the charming countryside. Croatia also has a beautiful and varied culture, history, and nature that you can discover and appreciate. Investing in this hidden treasure of a country is a wise and savvy decision.

Prices of houses for sale in some of the major cities of Croatia are as below:

• Average houses prices in Zagreb        : 1.441 € per square meter                 
• Average houses prices in Split        : 2.879 € per square meter                 
• Average houses prices in Rijeka        : 1.422 € per square meter                 
• Average houses prices in Osijek        : 621 € per square meter                 
• Average houses prices in Zadar        : 1.730 € per square meter         

5. Bulgaria

Bulgaria is a country that is located in Southeast Europe. It has a diverse geography that includes mountains, plains, and beaches. You can buy a house in Bulgaria for around €700 per square meter on average, according to Find Property Abroad. Some of the best places to buy property are Sofia, Plovdiv, and Bansko, where you can find city apartments, cultural attractions, or ski resorts.

Bulgaria is one of the cheapest countries to buy a house in Europe, where you can get a property for as low as £14,000 on average. Bulgaria has a lot to offer, from its beautiful nature and rich culture to its low cost of living and friendly people. You can choose from various locations, such as the capital Sofia, the coastal resorts of Varna and Burgas, or the ski destinations of Bansko and Borovets.

In addition to the affordable prices, Bulgaria offers a favorable investment environment. The country has made significant progress in recent years in terms of its political stability, economic growth, and infrastructure development. This progress has had a positive impact on the real estate market, making it more attractive to both local and foreign investors.

These are just some of the cheapest countries to buy a house in Europe, but there are many more to explore. If you're looking for a new adventure and investment opportunity, check out these places and see what they offer.

See more: The ULTIMATE Guide to Getting Started in Real Estate