Grow your portfolio: Top countries for overseas property investment

• Cyprus
• Panama
• United Arab Emirates
• France
• Frequently Asked Questions

When considering overseas property investments, savvy investors seek destinations that offer not only potential financial returns but also stability, growth prospects and lifestyle appeal. Understanding the diverse market dynamics and emerging trends is crucial for identifying the best places to allocate capital in the realm of international real estate. In this guide, we’ll explore some of the best countries to invest in real estate.

TOP COUNTRIES FOR REAL ESTATE INVESTMENT

If you have decided to build a nest egg for the future by investing in the overseas market, you will have to start with some research. The process of buying a home in other countries might be different compared to that in your home country, so you will have to prepare to navigate through all of that. Also, when filing taxes, you should consider talking to lawyers and financial advisors before taking the leap.

To give you a fair comparison of prices versus rental yields, we examine the cost per sq. m. and average monthly rents for apartment units in our compilation of the best countries to invest in real estate. 

Cyprus

Cyprus has always topped the list of destinations to invest in property internationally. The country offers steady rental yields, along with the benefits of a stable income. This means you could cover your running costs, mortgage payments and other monetary needs that may pop up while buying a property.

The property sales prices have always been pretty decent, which means investing in a property in Cyprus can be a win-win situation for you! Combine that with the excellent weather and plentiful things to see, Cyprus is a great place to settle your roots.

• Rental Yield: 4.57%
• Average Rent: USD 654.11 to USD 1417.23
• Per sq. m. cost of an apartment: USD 293.37

United Arab Emirates

If you are looking for luxury properties with an affordable price tag, the UAE is one of the best countries to invest in real estate. The country offers a higher rental yield, thus allowing you to reap the most benefits from your investment. Plus it’s tax-free, which means you get to pocket all the accumulated rent.

When it comes to buying residential properties in Dubai versus Abu Dhabi, Dubai presents better options. If you are wondering why investing in Dubai luxury properties is so popular, one the reasons is that, is the lower cost in comparison to other global luxury property markets.

According to Bayut’s Dubai Sales Market Report 2023, the most popular areas of Dubai for buying apartments include Dubai Marina, Downtown Dubai, Dubai Silicon Oasis and Palm Jumeirah. If you’re specifically looking for a good return on investment, you can dive into our list of the best areas in Dubai for property investment.

A country with excellent quality of life, multiple recreational avenues and overall great vibes, UAE is one of the best countries to invest in real estate! Of course, property ownership rules for foreigners are different in the UAE, which your agent will walk you through.

• Rental Yield: 5% to 8%
• Average Rent (in Dubai): USD 680 – USD 1,135
• Per sq. m. cost of an apartment: ranges from USD 189 to USD 1,472

Greece

Now who would say no to a holiday in Greece? Definitely not anyone in their right mind, that’s for sure.

How about living in Greece or better yet, investing in a holiday home there? Sounds like a dream, right? Greece is known for being one of the easier destinations to invest in, simultaneously offering great property investment advantages.

Post the financial crisis in 2007-08, Greece has recovered to a great extent owing to its booming tourism. As of 2023, there was foreign investment of USD 7.6 billion and it isn’t stopping anytime soon. The food, views and perks like a digital nomad visa in the EU or a golden visa are just a few things that investing in Greece offers.

Destinations like Athens, Thessaloniki, Naxos and Lesbos make Greece one of the best countries to invest in real estate. To start your property journey, you could try travelling to Greece from the UAE and taking a look at the country yourself.

• Rental Yield: 4.82%
• Rent: averages USD 311.21 for one person
• Per sq. m. cost of an apartment: starting USD 1686.57

Türkiye (Turkey)

The coastline, beaches and proximity to the Mediterranean make Türkiye an attractive place to live in – adding in the affordable cost of living and good quality of life makes it even better. The country is also gaining popularity as a destination for foreign property investments. Property prices are expected to reach USD 781 trillion in 2024, after its all time high in 2023.

Travelling from UAE to Turkey is quite easy, if you want to do your property viewings in person. If your passport does not offer a visa-on-arrival option, you most likely have to apply for a Turkey visit visa. On the bright side, buying a property costing more than USD 400k makes you eligible for Turkish citizenship through investment.

• Rental Yield: 7.13%
• Major Cities For Investment: Istanbul, Antalya, Bodrum and Bursa
• Average Rent: USD 800 to USD 1,300
• Per sq. m. cost of an apartment: USD 2,566

Panama

Panama is considered one of the best countries for real estate investment. With the proximity to both North and South America, its property market has become quite attractive to buyers. The country has recently launched their digital nomad visa, bringing in people primarily from USA for the lifestyle offered at lower cost of living.

It is constantly making progress as compared to the other real estate markets in this region, with a USD 19.5 billion investment in infrastructure, sanitation and overall development. Besides that, it is a fertile bread basket, so once you invest there, you can also make money by participating in agricultural projects (if that’s your cup of tea, of course).

• Rental yield: 6.42%
• Average Rent: USD 600 to USD 1000
• Per sq. m. cost of an apartment: USD 2,480

Spain

Spain has been on quite a lot of property investors’ lists. Perhaps it’s the beautiful country that it is, or it’s the fact that you are eligible for permanent residency on purchasing property above USD 541,000 (called the Golden Visa). The prices of property in Spain are slightly more on the affordable side in Europe (compared to exorbitantly expensive places like Switzerland and Luxembourg).

The highest number of transactions were seen in the Canary Islands, Valencia and Alicante region. Madrid, Barcelona* and Malaga are also popular amongst expats for their culturally rich offerings and great lifestyle.

• Rental Yield: 6.17%
• Average Rent: USD 795 
• Per sq. m. cost of an apartment: USD 4142.84

France

The French real estate market is one of the top countries for real estate investment. Known for being a foreigner-friendly destination with high ROI, this cultural hub has seen housing prices rise up to 150 per cent in the last 20 years (and continues to be on the rise).

France allows you to make in-country financing – a perk that not all countries can claim to offer. The interest rates for mortgages are quite low, while the loan-to-value is as high as 85 per cent, which means that you can opt for more refinance options. As far as taxation is concerned, the rental income tax is lower than in other European countries.

However, keep in mind that France (especially cities like Paris) is one of the most expensive places in the world to buy property in. Cities where properties are in demand include Paris, Lyon and Nice, where there’s a demand for rentals.

• Rental Yield: 4.52%
• Average Rent: USD 1,100 for a one-bedroom apartment in Paris
• Per sq. m. cost of an apartment: USD 10,000

United States of America

Although on the expensive side, the United States of America is one of the best countries to invest in real estate for several reasons. One is their stable economy, with the US dollar being the world’s reserve currency. Places like New York City*, Los Angeles, and San Francisco offer high rental yields up to 8%, owing to high inter-state migration. In fact, the country offers one of the world’s highest rental yields!

Mortgage in the US is quite accessible for international investors, with non-residents without US credit history getting access to low interest rates for 15 to 30 years. However, it takes long for non-US citizens to get mortgages approved. In addition, tax rates and income taxes change from state to state, so ensure you have a knowledgeable licensed realtor walking you through all these legalities – and how to invest in a foreign country.

• Rental Yield: 8%
• Average Rent: USD 3,803 for a 604 sq. m.
• Per sq. m. cost of an apartment: USD 15,343

FAQs ABOUT BEST COUNTRIES TO INVEST IN REAL ESTATE

Which cities have short rental ban?

To curb the rising cost of housing and cost of living, there is an outcry to ban short-term rentals by residents in popular tourist destinations. In the US, New York City has made it illegal since 2023 to rent out an apartment, unless you are registered with the city and currently reside in the apartment.

In Europe, Barcelona has announced plans to ban short-term rentals by 2028. Berlin had banned them in 2014 and made it legal again in 2018 with several laws and restrictions. Italy is looking to enact a law that caps properties to be rented out for 180 days per year. The UK is implementing regulations on short-term rentals from 2024 as well. Therefore, we would advise looking up local laws on short-term rentals before making any major decisions.

What is a digital nomad visa?

When a country offers a digital nomad visa, you’re allowed to work remotely for a company in your host country while residing there. Since being on a tourist visa and working in most countries is illegal, this permit allows you to adhere to the law.

Some of the best countries to invest in real estate today are offering this scheme, having their own thresholds for salaries and documentation. The UAE, Spain, Portugal and recently, South Korea are just some of the places offering this lucrative visa. If you have a stable career and want a change of scenery, here’s our in-depth guide to the UAE remote working visa.

What is citizenship by investment?

Citizenship by investment is a scheme offered by several countries that offers investors the country’s passport for investing in the property or other designated sectors of their economy. Several countries in the Caribbean, including St Kitts and Nevis, Antigua and Barbuda, along with destinations like Dominica, Egypt and Jordan, offer citizenship this way.

How can I find property in Dubai?

You can use Bayut.com, the UAE’s biggest property portal. Use the filters to find the right property that matches your requirements and get in touch with the agent (and agency). The UAE is incredibly safe and has wonderful infrastructure, making it one of the top countries for real estate investment.

And that wraps up our list of the top countries for real estate investment. For more property stories, stay tuned to MyBayut, the UAE’s favourite property blog

Source for data: https://www.globalpropertyguide.com/