Best Countries To Invest In Real Estate 2024
What’s the reason?
There are lots of reasons, of course return-on-investment is the biggest. Other reasons are:-
Investment Diversification:- By investing in foreign real estate you are not only diversifying your portfolio but also keep your eggs in different baskets. This is a play safe strategy.
Currency Diversity Benefits:- When you invest in real estate in other countries, you can gain the benefits of currency value in that country.
Tax Efficient Investment:- There are many countries in the world, where you can invest in real estate and grow your wealth with high ROI and without paying taxes.
Low-Cost Vacation:- One of the biggest advantages of investing in residential properties or holiday homes in foreign countries is, you can enjoy a low-cost vacation here without paying the bills of hotels.
There are many other best reasons to invest in foreign real estate and we will explain all these in our next blog. And let’s come to the main topic “Best Countries To Invest in Real Estate 2024”.
If you are ready to invest in real estate then it is very important to choose the right country, i.e., with less competition, more growth opportunities and fewer legal issues. So, here in this blog we are revealing top 10 countries to invest in real estate 2024.
UAE, Dubai
The UAE is the most preferred choice for real estate investors and Dubai in UAE is the most thriving location with numerous advantages. Dubai is among the real estate investment best cities because of its higher rents and profitability in addition to its low tax rate. The UAE's citizens' superior purchasing power drives the real estate industry. Consequently, it is a wonderful moment to purchase real estate in Dubai. Both the economy and the people are growing, helping Dubai's real estate market.
In the first quarter of 2023, the Dubai Realestate recorded its all time high transaction. During this period total 36,946 deals were registered (43.2% higher compared to the 2022). If we talk about the Year-on-Year increase for April 2023 then it was approx 16.2% The year-on-year increase for April alone was 16.2 percent. So, there is almost half a year left for 2024 and the future is bright for real estate investors.
Let's evaluate the other factors that make the decision of real estate investment in Dubai perfect for foreigners.
Cost of Living in Dubai
Dubai is an expensive city compared to other UAE locales. Cost of living index estimates that a single person in Dubai needs about 3,700 United Arab Emirates Dirham (AED), or $1,000 USD per month, excluding rent. For more information you can read our blog cost of Living in Dubai.
Foreign Ownership Laws in Dubai
As per Article 3 of Regulation No. 3 of 2006 determining areas for ownership by foreigners of property in the Emirate go Dubai (pages 129 - 132) indicates the land plots designated as freehold properties. In UAE and particularly in Dubai Foreign Ownership is permitted in freehold areas & communities. This means that any foreigner or expat can buy property here but only within the boundaries of these freehold areas. For more information you can read our blog Real Estate ownership rules for foreigners in Dubai.
Tax Liability in Dubai
The most recent update regarding this matter has been provided through the unveiling of Cabinet Decision No. 56 of 2023, pertaining to Federal Decree-Law No 47 of 2022. According to this announcement, foreign companies and non-resident juridical persons are now required to pay a 9% tax on all income derived from real estate and other immovable properties within the country. This tax applies to properties held for investment purposes or utilized for business activities.
Turkey, Istanbul
Turkey's economy is experiencing a remarkable surge, showcasing rapid growth and providing a wealth of financing options to entice investors. Istanbul, widely recognized as a vibrant center for business, culture, and tourism, stands as a thriving hub within the country.
Real estate market of Istanbul is one of the best examples of overall growth in Turkey. In the last couple of years, Istanbul has experienced a huge upward trend, offering good opportunities for the real estate investors. The city's escalating prominence is reflected in the flourishing real estate sector, attracting both domestic and international interest, and these drives their market:
Increasing population
Increasing demand
Incentives for real estate investment.
Istanbul offers a wide spectrum of properties, catering to diverse preferences and budgets. Ranging from opulent apartments to more affordable housing options, the city's real estate market presents a range of choices characterized by varying prices, depending on factors such as location and available amenities.
In addition to its attractive property offerings, Istanbul's real estate market also captures the attention of foreign buyers through the government's citizenship by investment program. This program enables investors to acquire Turkish citizenship by acquiring property valued at a minimum of $250,000 and maintaining ownership for a period of three years. This incentive further enhances the allure of Istanbul's real estate sector for international investors seeking both residency and investment opportunities.
If we analyze the real estate investment data of the last 10 years, then we will find an increase of approx 14% in comparison of property value in 2014 and 2023. According to the Data released by the Turkish Statistical Authority, the apartment sale by foreigners in the first month of this year has reached 6000+ units, showing an increase of approx 5% from December 2022. And these purchases accounted for 3% of the total sales in January 2023.
Additionally, the annual sales of apartments to foreign buyers reached 67,490 units, a 15.2% increase from the previous year. Foreigners' purchases made up 4.5% of all apartments sold in Turkey throughout the year.
Cost of Living in Turkey
For a family of four, the approximate monthly expenses, excluding rent, are estimated to be around 36,347.0 TL. Conversely, a single individual's estimated monthly expenses, excluding rent, amount to approximately 10,464.3 TL.
Foreign Ownership Laws in Turkey
Under the property or land ownership laws in Turkey, foreigners can buy property here except in four specific countries: Syria, Cuba, North Korea, and Armenia. But, this exception can be removed under reciprocity agreements.
When a foreigner purchases property in Turkey, they are treated similarly to Turkish citizens in terms of legal procedures and the acquisition of the title deed.
Moreover, owning property grants them legal residence within the country, specifically under the property they own. The status of residency can be renewed every 1 or 2 years.
As a foreign investor in Turkish real estate you have the opportunity to apply for Turkish citizenship with the Law on Granting Citizenship to Foreign Investors. This law facilitates the foreigners.
Foreign investors in the Turkish real estate sector also have the opportunity to acquire Turkish citizenship through the Law on Granting Citizenship to Foreign Investors. This law facilitates the foreigners who invest in real estate or a group of real estate worth at least $250,000 in Turkey.
Tax Liability in Turkey
In accordance with the law, property tax is mandatory for all immovable properties situated within the borders of Turkey. Foreign investors in Turkey are considered as limited taxpayers, so they have to pay tax on rental income and the sale of their properties. As well as, transactions in sale of properties and rental may come under VAT in some cases.
As per the real estate law in Turkey, every residential & commercial property or land area comes under the real estate tax. The owner of the property assumes the role of the taxpayer. Therefore, when it comes to taxes and Turkish real estate, foreign individuals who purchase properties in Turkey are obligated to fulfill their real estate tax obligations.
Stockholm, Sweden
Sweden presents a compelling choice for real estate investment, owing to its robust economy and promising return on investment. The country stands as a prominent hub for technology companies, magnetizing businesses and individuals alike. Moreover, the demand for housing in Sweden is on the rise, particularly in Stockholm, which is recognized as one of Europe's most expensive cities, thereby aligning with the trends observed in its real estate market.
Real estate of Sweden is expected to touch the figure of €33.5 billion by the end of 2026. 2 years back, the figure was €32.3 billion and rising 0.3% on average over the year. So, by investing in Sweden residential property you can join the rising league of investment.
Despite the higher costs, Stockholm boasts stunning architectural wonders and rich historical landmarks that contribute to its allure. The average price of an apartment in Stockholm in sq. meter is approx SEK 85,000. And the best thing is that limited availability of residential property makes prices continuously rising and emphasizes the potential for investment growth in the city.
Cost of living in Sweden
The estimated monthly expenses for a family of four, excluding rent, amount to approximately 35,507 Kr. On the other hand, a single individual can expect monthly expenses of around 9,662 Kr without factoring in rent.
Foreign Ownership Laws in Sweden
Foreigners can buy land & property in Sweden just like the residents, and there is no restriction, except the restrictions that also apply on the residents. But one thing that every foreigner investor in Sweden keeps in mind is that in the case of agricultural real estate, public permission may be mandatory for the ownership transfer. This ensures that proper regulations and considerations are in place for the acquisition of agricultural properties.
Tax Liability in Sweden
Stamp duty of 4.25% is payable by every Swedish property buyer & foreigner at the time of purchase. As a property owner in Sweden, you have to pay property tax between 0.2% and 2.8% of the value of the asset.
Property owners who rent out their properties have to pay 30% income tax on their total rental revenue. If anybody sells their property here then they have to pay 30% of the total capital gains which comes from the difference between the sale & purchase price of the property. These taxation policies help shape the financial landscape of real estate transactions in Sweden.
Amsterdam, Netherlands
The Dutch economy stands as a strong and stable force, offering a range of financing options to investors, similar to Turkey. As well as being a member of the EU (European Union) the Netherlands offers some extra advantages to the real estate investors thanks to its inclusion into the EU framework.
If we talk about Amsterdam then this is the largest city in this country with rich historical architecture, eye-catching views, water canals and pollution free green surroundings. All these features also make Amsterdam a desirable location in the middle of travelers & investors who are looking for a place to stay, work, and explore.
And this is also the biggest reason behind the high-demand & high property price in Amsterdam real estate. Average housing price here is approx €512,000, however this cost can vary according to location, size, and kind, among other things. Even as there are many locations in the country where the cost of the same configuration exceeds €1 million.
Cost of Living in Netherlands
The estimated monthly expenses for a family of four, excluding rent, amount to approximately 3,238.1 euros. On the other hand, a single individual can expect monthly expenses of around 926.4 euros without factoring in rent.
Foreign Ownership Laws in Netherlands
Foreigners in the Netherlands can buy property with the same rights as the citizens. Only thing you need to buy property here is a valid passport. There is no need for residency in the Netherlands to buy property here but with a property in Colombia you can apply for the residency.
Tax Liability in Netherlands
Just like other investments, real estate also comes with some tax liabilities like property tax on the property value and other tax on capital gains which comes from the selling of property and applied on the total margin of buying & selling price.
Australia
The GDP of Australia is greatly dependent on the real estate industry. And reasonable property prices and high demand lead to strong demand in the coming years. At this time Australia has two cities Sydney and Melbourne that are world famous for their best property prices and high returns on investment. These both cities have a rising property market that magnetizes domestic & foreign buyers. Even as there are many other cities in Australia such as Brisbane and Perth that have strong property markets and present more affordable options with high ROI.
Rule & regulation in Australia real estate sector are federal and state, every state and territory have its own laws and regulations on real estate transactions. This makes sure that every real estate transaction is regulated by specific guidelines.
The Government of Australia actively encourages foreign investment in the real estate sector, positioning Australia as one of the best locations for real estate investment. This welcoming gesture towards the foreign real estate investors contributed to Australia’s reputation as one of the best countries in the world.
Cost of Living in Australia
The estimation of cost of living for a family of four without rent is approx 5,794.3A$. On the other hand, for a single person, the approx monthly cost without rent is approx 1,641.2 A$ without rent.
Foreign Ownership Law in Australia
Foreigners can buy property in Australia but they have to take permission from the Foreign Investment Review Board.
Tax Liability in Australia
Just like other investments, real estate also comes with some tax liabilities like property tax on the property value and other tax on capital gains which comes from the selling of property and applied on the total margin of buying & selling price.
Portugal, Algarve
You should definitely explore the Algarve region of Portugal if you want a beachfront home in Europe but are limited by your budget. Even though this location is known for affordable residential properties, there are lots of options for the real estate investors who are looking to invest millions of euros. Here you can easily find the grand 7 bed seafront villa at approx €6.2 million as well as a budget friendly home under €165,000 nearby sea or waterfront.
One of the best things about real estate in Portugal is that any foreigner can buy property anywhere with 100% ownership. Stunning cliffs of Algarve to picturesque beaches and eye-catching views of the city made it an attractive destination for the international real estate investors. So, whether you are looking for a luxury villa or affordable home, get the best in Algarve within your budget and preferences.
Cost of living in Portugal
The cost of living in Portugal is much lower than in the USA. The estimation of cost of living for a family of four without rent is approx 2,244.6€ . On the other hand, for a single person, the approx monthly cost without rent is approx 612.3€ without rent.
Foreign Ownership Law in Portugal
As a foreigner you can easily buy or sell property in Portugal. But if you are investing in Portugal for acquiring a Golden Visa - then there are some restrictions on where you can buy property, as well as, there is a minimum amount of investment for Golden Visa.
Tax Liability in Portugal
Just like other investments, real estate also comes with some tax liabilities like property tax ranging from 0.3% - 1.2% depending on the property value. Other tax is capital gains which comes from the selling of property and applied at a rate of 10% on the total margin of buying & selling price.
Panama
Beachfront properties on the Pacific west coast of Panama City offer both property appreciation and rental income. The area has experienced significant growth over the past decade, becoming a thriving, modern, and dynamic city. Although some beaches in this region have been nationalized, which may create title issues, caution is advised when purchasing property there.
If we talk about the economic condition of Panama then you will find that in 2022 GDP of this country has seen a jump of 9% in 2022, experts expect Panama’s economy to grow by 4.5% in 2023 and 2024. So this is the best time to invest in Panama.
In terms of pricing, Panama City offers stable prices, and in some cases, properties can be considered a steal. A brand new, fully equipped condominium located along the waterfront is typically priced below $300,000. Moreover, resale properties often present even more affordable options, with prices frequently falling below $250,000. This favorable pricing makes investing in Panama City an attractive prospect for buyers looking to acquire property with excellent value for money.
Cost of Living in Panama
The estimation of cost of living for a family of four without rent is approx 2,659.6$ . On the other hand, for a single person, the approx monthly cost without rent is approx 741.4$ without rent.
Foreign Ownership Laws in Panama
As a foreigner buyer in Panama real estate you have the same right as local residents. But there are few restrictions for the foreigners, they can’t own land or property within the 10 kilometers. If you opt for any untitled land in Panama as a foreigner then that particular land must be owned by locals for a minimum 2 years.
Tax Liability in Panama
Just like other investments, real estate also comes with some tax liabilities like property tax on the property value and other tax on capital gains which comes from the selling of property and applied on the total margin of buying & selling price.
Italy, Abruzzo
The Abruzzo region of Italy stands out as an excellent destination for those seeking an overseas investment property. This country is known for its favorable housing price in Europe with a wealth of opportunities. And if we talk about the Abruzzo region then along with all these here you will have lots of recreational facilities, delectable cuisines and lots of fest & festivals. The Real Estate market in Italy records investments for approx 1 Billion Euros in the first quarter of 2023. Real estate investment experts forecast 0.5% to 1% growth in the residential sector.
If you are looking for renovation projects then at Abruzzo you can buy a home under €35,000 ($45,000). As well as, there are a wide range of affordable homes available in the market, as per the need for different budgets and preferences. By investing in residential property in areas like Abruzzo you will not only enjoy an enticing investment but also get access to the local cultural heritage, eye-catching views and everything that you expect from Italy.
Cost of living in Italy
The estimation of cost of living for a family of four without rent is approx 2,856€. On the other hand, for a single person, the approx monthly cost without rent is approx 891.3€ without rent.
Foreign Ownership Laws in Italy
Fortunately, most foreigners & expats can buy property in Italy without any restrictions. Especially the residents of the European Union or countries that come under the bilateral agreement. If your country doesn’t fall under these categories then you need to check the reciprocity rule for Italian residents in your country, if they can buy property in your country then you can also buy in Italy.
Tax Liability in Italy
If any foreigner buys property in Italy from an individual seller then they have to pay 9% property tax on the fiscal value of the property. As well as, owners of the properties have to pay property tax ranges from 0.4% to 0.7% depending on the property value, location and type.
Medellín, Colombia
Most of the people recognize Medellin city in Colombia due to the late drug lord Pablo Escoba and drugs, but this is a thing of the past. Fortunately for the real estate investors & home buyers, this challenging history comes as a boon and results in low property prices compared to the rest of the country. As well as, the city itself converts into a safe & best place to live & invest.
According to real estate investment experts, the property price in this city is increasing at the rate of 5 - 8% annually, but still there are lots of opportunities for the buyers & inventors. Here you can easily find 1 BED & 2 Bed Apartments under $100,000. This affordability and Medellin's status as Columbia’s one of the largest cities attracting the attention of real estate investors and home buyers who are tourists and retirees wants to live in a peaceful world-class city.
Real estate investment in Medellin, particularly in the neighborhood of El Poblado is very advantageous at this time. The city’s attractive climate and rich culture makes it a best location for real estate investment. You can take advantage of the current market conditions as a real estate investor and capitalize on the potential growth.
Cost of living in Colombia
The estimation of cost of living for a family of four without rent is approx 6,277,585.9Col$ . On the other hand, for a single person, the approx monthly cost without rent is approx 1,825,746.7Col$.
Foreign Ownership Laws in Colombia
Foreigners in Colombia can buy property with the same rights as Colombian citizens. Only thing you need to buy property here is a valid passport. There is no need for residency in Colombia to buy property here but with a property in Colombia you can apply for the residency.
Tax Liability in Colombia
Just like other investments, real estate also comes with some tax liabilities like property tax ranging from 0.3% - 1.2% depending on the property value. Other tax is capital gains which comes from the selling of property and applied at a rate of 10% on the total margin of buying & selling price.
Cyprus
Cyprus' captivating landscape, strategic location, economy thriving sectors, and tax benefits make real estate investment highly profitable. There is no specific location or region but the entire Cyprus is experiencing a strong demand in real estate. Attracting a huge interest from foreign real estate investors who want to diversify their investment portfolio and generate passive income. Residential properties, in particular, offer the advantage of easy maintenance and the potential to collect rent from tenants, allowing investors to take full control of their investment. While self-management can save costs, Cyprus also offers numerous property management companies, which can be particularly beneficial for foreign investors who are not physically present in Cyprus.
Investing in Cyprus real estate, especially in the residential sector, comes with several perks. The island boasts a thriving tourist industry, making it relatively effortless to rent out luxury villas or apartments to vacationers. Thanks to its favorable weather, Cyprus enjoys one of the longest vacation seasons in Europe, spanning from May to October. Consequently, property owners have the opportunity to earn rental income during this extended period. Additionally, property owners who rent out their properties can also enjoy the flexibility of utilizing their own property for personal stays whenever desired.
During the last year, total value of real estate transactions in Cyprus reached an all time high of €5.2 billion with an annual increase of 27%. And if we talk about numbers then during 2022 real estate of Cyprus has registered a total 22,500 transactions, that is 12% more than 2021.
So, with its attractive market dynamics, favorable climate, and thriving tourism industry, Cyprus real estate investment, particularly in the residential sector, offers a range of advantages and opportunities for investors seeking to maximize their returns and enjoy the island's unique lifestyle.
Cost of living in Cyprus
The estimation of cost of living for a family of four without rent is approx €2,839.1. On the other hand,, for a single person, the approx monthly cost without rent is approx €813.8.
Foreign Ownership Laws in Cyprus
Citizens of the European Union can easily buy properties in Cyprus without any restriction or limitation from the local bodies. But if you are a not-EU citizen then you need to obtain permission from the Council of Ministers first then you can buy or invest in Cyprus Properties.
Tax Liability in Cyprus
Real estate investment in Cyprus comes with various tax liabilities like property tax ranging from 0.6% - 1.9% depending on the property value. Another tax is capital gains which comes from the selling of property and applied at a rate of 20% on the total margin of buying & selling price. And the third is the rental income tax.
Conclusion
Real Estate market worldwide is experiencing a rising trend due to several reasons but return-on-investment is the biggest reason. Even as there are many other factors that influence the decision of real estate investors like, currency diversity benefits, tax efficiency, and the opportunity to enjoy low-cost vacations in foreign properties. So, when it comes to choosing the right country for real estate investment then there are lots of options but the countries mentioned above are the best in those options.