The Best Countries to Buy Real Estate for Investment

CEO Khai Intela
Real estate is a challenging field, and the broader your search, the more opportunities you are likely to find. Therefore, you should not limit your investment to one market and should expand your search to...

Real estate is a challenging field, and the broader your search, the more opportunities you are likely to find. Therefore, you should not limit your investment to one market and should expand your search to include new countries that give you high rental returns. To help you find the best market with the highest returns on investment, we have shortlisted the best countries that allow foreigners to buy properties. In this article, you will discover a new way to enter the real estate market.

Why Invest in Other Countries?

Lower Cost

The exchange rate of the local currency influences the sales price in US dollars when purchasing real estate in a foreign country. With a currency advantage, you may purchase more with your capital budget. Additionally, many countries have lower real estate prices due to their economic conditions. This makes investing overseas potentially profitable for you.

Additional Income

Renting your foreign property to guests on a short or long-term basis can provide an income stream that can be used to pay off your property's carrying expenses or to accumulate savings in the local currency. While net yields in Europe are generally lower, double-digit profits are achievable in tourist-friendly locations. For example, a tiny seaside property in Northern Cyprus may be purchased for less than $100,000 and generate a net return of more than 10%.

Overseas Property Allows for Low-Cost Vacations

Purchasing real estate abroad is not just an investment; ideally, it is in a location where you also want to spend time. It can also serve as a retirement plan, where your investment now can become your retirement home tomorrow, generating rental income until you're ready to move in. The cost of living in many desirable locations in the world may be lower than in your country. For example, you may save money on winter heating expenditures by spending time in your vacation home.

Diversification and Risk Reduction

Diversification is crucial in the real estate market to avoid economic fluctuations or political instability in your country. Investing abroad in different countries provides a way to reduce the loss of value of your property if the economy declines. When you buy real estate abroad, you reduce market risk and exchange rate risk. For example, overseas markets may rise while the housing market in your country is headed towards a recession.

In Which Countries Should You Invest in Real Estate?

1. Turkiye

Through the Bosphorus Strait, Turkey links the continents of Asia and Europe. Turkey is a popular destination for international real estate investors due to its robust economy and wide range of real estate alternatives. The government facilitated foreign investors' access to Turkish real estate in 2012. With interest rates as high as 6% annually during the busiest rental seasons, the nation is attractive to investors purchasing upscale real estate in Turkey and buying to rent in Kalkan, Bodrum, Fethiye, and Antalya.

2. UAE

If you are considering luxury investment, you should look into the UAE real estate market, especially Dubai. The UAE boasts the most prestigious buildings and skyscrapers in the world. Luxury properties are a haven for investors because their prices stay stable even in a downturn economy. The UAE has a magnificent infrastructure making it appealing for businesses and families. Many find living in the UAE comfortable because of its tax-free income policy. Dubai offers a vast selection of homes. The most desirable locations to buy apartments in Dubai are Dubai Marina, Downtown Dubai, International City, and Palm Jumeirah.

The Best Countries to Buy Real Estate for Investment The Best Countries to Buy Real Estate for Investment

3. Uruguay

Uruguay welcomes international investment, and land ownership by foreigners is unrestricted. It is a peaceful country in South America that is not afflicted by armed conflict. Situated between Brazil and Argentina, Uruguay is self-sufficient, and the collapse of the world economy has no impact on it.

4. Panama

Panama holds a significant position, with its shoreline near the Panama Canal and its proximity to the Pacific and Caribbean Seas. It is also the link between South America and the United States. Panama is the richest nation in Latin America due to its strategic position. It is a secure nation for the property market, and even the collapse of the world economy would not be a major issue.

5. Cyprus

Cyprus has one of the greatest real estate markets in the world and is a popular travel destination. The Cypriot government aggressively assists those who purchase foreign real estate. Cyprus offers intriguing opportunities for foreign real estate investment. The nation permits unfettered repatriation of investment earnings, freehold ownership for foreigners across the nation, and no capital gains tax on real estate sales.

6. Spain

Spain's favorable economic climate makes it a desirable travel destination for foreign investors. Foreigners have the benefit of freehold ownership, which enables them to buy real estate anywhere in Spain and make use of all the rights and benefits that go along with it. Experts assert that there may be a strong demand for residential real estate in the coming years as Spain's population growth is expected to reach 48 million by 2025.

7. Thailand

Although Thailand's primary appeal is its agricultural sector, it is a country that merits consideration due to its robust economy and growing tourist sector. Foreigners have limitations placed on property ownership, but the condo market is where most foreign investors focus their attention. A condo is cheaper and easier to manage as a rental than an independent property.