The Top 10 Real Estate Markets in the World
Real estate, like other investments, sometimes carries a certain level of risks. These depend on politics (domestic and international); currency and interest rate fluctuations, tax regulations, and other economical factors.
However, property investing offers an investment haven for people around the globe. Some markets are recovering from a slump, others have recently become popular, but many offer great opportunities and attractive rental yields. Currently, low-interest rates offer investors the incentive to diversify their investment portfolios or start a real estate business.
Classical real estate markets continue to grow and attract attention. The most-traded include China, the U.S., the UK, Japan, and India, but smaller investors in the U.S. are looking for offshore real estate investment opportunities at exciting destinations that promise continued growth.
Brazil’s currency is experiencing historic lows against the US dollar, making it extremely affordable for real estate investors right now. Coupled with no visa requirements for Americans, there is a huge demand for short-term accommodation which presents many investment opportunities on the north-east coast and cities like Fortaleza, Brasilia, and Sao Paulo.
Belize is a popular tourist destination because of its exotic Caribbean lifestyle. It is also a retirement haven since the introduction of its tax-free retirement program, and it attracts people from the U.S. because English is its official language. Property investments offer short-term and long-term rental opportunities. Holiday resort accommodations and Airbnb offerings currently have double-digit returns.
Portugal’s property market and popularity as a tourism destination continue to grow. Property prices in some of the popular areas in Lisbon are beyond the reach of most (€10,000 per square meter). Other areas in Lisbon and around the country offer great buying opportunities and exciting renovation prospects. Portugal does not offer tremendous yields, but it is a politically risk-free country, has a strong economy, and great for those seeking currency diversification.
Panama continues to have a stable and growing real estate market with many opportunities in the rental sectors (both long- and short-term). Its agricultural property market also presents great investment opportunities. Rental opportunities are not only aimed at non-residents looking to live and retire there. The country has a huge demand for quality, affordable housing for its growing working class. Returns of 23% are expected from government-backed housing schemes.
Even though some people consider Colombia risky, it is considered the top Latin American country for investor protection by the World Bank, and sixth in the world. Tourism continues to grow, as does the demand for short-term rentals. American investors gain from the declining Colombian peso which makes property prices very affordable. Like Panama, Colombia also offers opportunities in agricultural real estate investment.
Malaysia attracts ex-pats from all over the world with its popular MM2H program. This is a residency-by-investment with a zero-tax incentive on foreign earnings. People are drawn to the former British Colony because English is spoken widely and offers an affordable lifestyle in modern cities. New developments are priced well to meet the minimum price ranges set by the government for foreign investors.
Beachfront properties in Mexico are the most affordable in the world, and the country has affordable property taxes. Even though the Mexican market hit a bit of a slump recently, it started strengthening again. Tourism is expected to continue to grow in areas south of the U.S. border. Currently, property appreciation in coastal areas is 9% per year, and net rental yields at 14%. The strong buying power of the U.S. dollar ensures attractive investment opportunities.
During the ten-year crisis that saw the Greek economy shrink by 25%, its property market took a huge knock. Even though it has started recovering, there are some real bargains to be found around in some parts of Greece. Foreigners qualify for a Golden Visa with an investment of €250,000. This buys a small apartment in the center of Athens, but Greece has over 227 inhabited islands and a mainland steeped in history and beauty. A growing tourist industry and free access throughout the Schengen Zone continue attracting buyers to Greece.
9. Dominican Republic
The Dominican Republic is the most popular destination for tourists to the Caribbean. The local property prices are extremely affordable, and a 2-bedroom villa on one of the beautiful beaches of Las Terrenas starts from $160,000. An investment of $200,000 allows for permanent residence. Property appreciation is about 9% annually, and rental returns are between 9 and 12%.
Cyprus is another country that encourages foreign investors, and it continues to interest non-EU nationals, especially for luxury developments. This has boosted a real estate market that had eight years of continued drops in prices. An investment of €300,000 ensures an investment in a country that offers 320 days of sunshine a year and is a popular tourist destination.
Nagabhushanam “Bobby” Peddi, TRUiC CEO “Location, investment returns, and political stability continue to be a drawcard for investors in real estate.”
Besides volumes traded, real estate investors look for real estate investments that offer affordable investment opportunities, great returns, growth, and security.