Knowing the best countries for real estate investment is not a task to be taken lightly. With technological advancements, increased accessibility, and growing global economies, real estate investing has transcended national boundaries, opening many possibilities for foreign buyers willing to explore beyond their domestic markets. Additionally, one has to look at the future to ensure there is potential for their investment to grow.
From sun-drenched Mediterranean beaches to bustling Asian metropolises, investing in real estate overseas offers substantial financial gains, cultural immersion, and chances to build diverse and resilient investment portfolios. So, let’s delve into key factors driving international real estate investments, the best countries to invest and let’s also explore the potential benefits that each country offers.
Best Countries for Real Estate Investments
1: International Real Estate in Dubai
Buying property in Dubai offers many real estate investing advantages that have attracted foreign investors worldwide to the Middle East. Most investors say Dubai is the best country for sound investments thanks to their robust and stable economy and strategic geographic location that makes Dubai prime for international business and tourism.
The city’s pro-business policies and tax-free environment provide favourable investment climates, allowing foreign investors to enjoy high rental yields, interest rates, and potential capital appreciation on their real estate purchases. Additionally, Dubai boasts well-developed infrastructure, a strong economy, world-class amenities, and luxurious lifestyles for residents and tourists.
The city’s modern architecture, iconic landmarks, and cosmopolitan atmosphere, particularly around Dubai marina, contribute to its global appeal as the best country. Furthermore, Dubai’s real estate market offers several property options, from luxury villas and high-end apartments and skyscraper living to commercial spaces, catering to various investment preferences. Lastly, Dubai’s global status for trade and commerce, coupled with burgeoning tourism industries, ensures potential investment opportunities.
2: The International City of London in the United Kingdom
London is widely regarded as an excellent place for real estate investment. This global financial hub with a strong economy, hosts numerous multinational corporations and offers diverse real estate options and business opportunities. This creates strong demand in prestigious areas like Mayfair and Knightsbridge.
London’s residential real estate market has historically shown resilience and long-term growth, making the city an attractive option for foreign investors seeking capital appreciation. The city’s limited supply of land, combined with a growing population and high housing demand, contributes to real estate value appreciation over time.
Furthermore, London’s commercial property and market is known for stability and transparency, with well-established legal systems and property rights. This provides secure environments for real estate investments, giving investors peace of mind.
However, it’s important to note that the London real estate market is competitive, and property prices are relatively high compared to other cities. Indeed, average property prices in London puts the city off the court for budget investors. Before buying real estate, local regulations, taxes, and market conditions should be thoroughly researched and considered. (How to profit from the London House market.)
3: International Business in Manchester
If London is out of your price range, Manchester is another UK investment hotspot. Compared to London, property prices in Manchester are more affordable, providing real estate investors with opportunities to enter the UK market at lower entry points. This affordability of real estate prices offers greater yield and return on investment potential.
Manchester has experienced significant regeneration and real estate development, particularly in the city centre and Salford Quays. This has increased housing demand, commercial real estate, and infrastructure.
Manchester’s large student population, and young working professionals, also mean high rental demand. This provides real estate investors consistent rental income and attractive yields, particularly in areas close to universities, employment hubs, and transport links.
Overall, Manchester boasts diverse and robust economies, with a strong focus on sectors like finance, technology, creative industries, and healthcare. The city has attracted significant investment and job opportunities, which drives housing demand. Read about Manchester in the UK.
4: Antalya and Supreme Coastal cities
Previously, Istanbul has always been the place for investments in Turkey. However, other major cities in Turkey have climbed up the real estate ladder, including Mediterranean Antalya. Investing in real estate in Antalya allows you to tap into the thriving tourism industry through rental income and high occupancy rates.
Compared to many European countries, property prices in Antalya are relatively affordable. This presents opportunities for real estate investors to purchase properties at lower costs. Antalya’s real estate market has also experienced steady growth. The city’s expanding economy, infrastructure development, and government initiatives to attract foreign investment contribute to the positive outlook for the real estate sector. As demand increases, property values have potential to appreciate, providing capital gains for investors.
Antalya enjoys Mediterranean weather with long, hot summers and mild winters, making the area appealing for outdoor activities. The region’s picturesque landscapes, including the Taurus Mountains and turquoise coastline, add to the appeal for rental apartments with high rental yields. Where to buy property in Antalya – Turkey.
Note: Turkey does have a program to become a Turkish citizen by investing in real estate. However, this scheme mainly applies to real estate opportunities in Istanbul. For more information about Turkey’s citizenship real estate investment scheme, please get in touch with us.
5: North Cyprus for Beachfront Properties
Once never heard of on the real estate markets, North Cyprus has attracted more attention over the last five years as people flock to buy beachfront property. Naturally, as an island, beachfront property is common, and for real estate investors offers a specific niche that other countries can’t match.
Living or owning real estate on the beach provides convenient access to water activities like swimming, snorkelling, boating, and sunbathing. In fact, it is a whole other lifestyle that appeals to both short- and long-term renters. Naturally, beachfront homes also have strong investment potential due to scarcity and desirability. Over time, as the demand for beachfront properties increases, property values may appreciate, potentially offering a good return on investment.
6: The Time-Honoured Costa Del Sol
Regarding EU countries, Spain will always be the favoured country to purchase a property. For decades, this country has attracted foreigners for tourism, real estate investing and overseas ex-pat living. The destination within the country that always stands out on the property market is the Costa del Sol region in the southern part of Spain’s Andalusia region. The reasons why vary.
The Costa del Sol is highly popular and low-cost, attracting millions of visitors yearly and ensuring a steady demand for rental properties. The region’s popularity among tourists creates strong rental demand all year round. The area is renowned for golfing. Owning property close to golf courses appeals to those who enjoy the sport and rental income.
The thing to remember about the Costa del Sol is that it is a large region. So if this area of Spain grabs your attention, be prepared to do local research, as there are many cities, towns and villages to choose from. Read more about the Costa del Sol here.
7: Portugal for the Golden Visa
Many other countries offer golden visa schemes, but the Golden Visa scheme in Portugal is a residency-by-investment program that grants residency and citizenship to foreign investors who meet specific investment criteria in other countries.
The Portuguese government introduced the Golden Visa program in 2012 to attract overseas investments and stimulate the country’s economy. It offers pathways to residency and citizenship for non-EU/EEA nationals who make qualifying investments in Portugal.
The Golden Visa program offers several investment options that qualify for residency, including investing in real estate valued at or above specific thresholds. The threshold may vary depending on the location and condition of the property.
The Golden Visa initially grants residency status to the investor and their family members, allowing them to live, work, and study in Portugal. After continuous residency, typically five years, investors may become eligible for Portuguese citizenship and the associated benefits, including visa-free travel within the European Union. More about buying property in Portugal.
Tip and Advice for Real Estate Investing Overseas.
Research the Local Market: Thoroughly research the real estate market in the country and specific region where you plan to invest. Understand the current property trends, market conditions, and factors that affect property values, such as economic stability, infrastructure development, and tourism.
Engage Local Experts: Seek the assistance of local real estate professionals, including agents, lawyers, and property inspectors who have experience and knowledge of local markets.
Visit the Location: Explore neighbourhoods, assess amenities, transportation links, and infrastructure, and review local communities and lifestyles.
Understand Legal and Regulatory Framework: Familiarise yourself with the legal and regulatory framework surrounding real estate transactions in the country. Ensure you understand ownership rights, tax obligations, residency requirements, and any restrictions or regulations.
Due Diligence: Good investment always involves due diligence on the property you intend to purchase. This includes verifying the property’s ownership, checking for any liens or encumbrances, reviewing building permits and licenses, and conducting property inspections to assess its condition.
Real Estate Transactions: Understanding financing options available to foreign buyers helps save money. Explore local mortgage options, open a bank account in that country, check exchange rate fluctuations, and consider currency conversions on your investment. Consult with financial advisors to determine your situation’s most suitable financing approach.
Consider Rental Income Potential: To generate rental income from the property, assess the rental market in the area. Calculate potential rental income and weigh it against expenses to determine the viability of your investment.
Tax Implications: Consult with tax professionals knowledgeable about investment and income tax laws and how they apply to foreign property owners. Understand the tax obligations, including property taxes, income taxes, and any tax treaties between your home country and the country where you are investing.
Plan an Exit Strategy: Consider potential resale value, market liquidity, and long-term investment goals. This can help you make informed decisions and manage your investment effectively.
Rules for Non-Residents: Do investigate laws regarding non-residents and residents. For example, if you want to stay longer than 90 days in Turkey, you must swap from a tourist to a residency visa. Every country has separate rules that are worth investigating before you buy.
Employ Our Real Estate Investment Services
We know that buying real estate overseas is a big lifestyle decision. That is why we help foreign investors make the right choice to purchase real estate with peace of mind. Our overseas market knowledge doesn’t just focus on the best countries for real estate investment. Instead, we encourage our investors to drill down to local and regional districts. Hence, they find emerging markets to help them capitalise on their investment property.
To invest in the property market abroad, start your journey by browsing our portfolio of apartments and villas in many different countries. This will help you learn about each country and region’s property market. If any real estate options interest you, fill in the enquiry form to find out more via email. Alternatively, call us today, and chat with an agent about making real estate investments overseas.