Investing in real estate abroad has always been an excellent strategy to diversify an investment portfolio, offering investors various benefits. It allows you to secure your funds, enjoy a stable passive income, and potentially obtain residency or citizenship.
Top 8 Countries to Buy Real Estate in 2024
By spreading investments across different countries, you can mitigate the risks associated with economic downturns in any one region. Many markets offer high returns due to rapid development, urbanisation, and economic growth, while popular tourist destinations provide steady rental income. This guide highlights the best countries to invest in real estate for 2024 and beyond.
United Arab Emirates
In the last few years, sales prices for residential property in Dubai increased by approximately 18% between 2022 and 2023. With a steady increase every quarter, Dubai has witnessed one of the highest jumps in the real estate market compared to most major cities. Paired with a tax-free regime, which includes no income tax, capital gains or wealth tax, stable political and economic conditions, and world-class infrastructure, it will be hard to find a reason to not invest in the city.
The UAE's forward-thinking leadership, continuous investment in infrastructure, and high quality of life contribute to the country’s growth. The demand for real estate is fuelled by a growing population and a strong economy, which is diversified across sectors like trade, tourism, and finance. The introduction of the Golden Visa programme further fuelled this demand, allowing foreign investors to secure a 10-year residency in Dubai when buying a property. Other emirates, such as Abu Dhabi and Ras Al Khaimah, have also experienced significant growth. Abu Dhabi, with a serene living environment and burgeoning tourist attractions, continues to develop its natural islands. Meanwhile, Ras Al Khaimah is witnessing a surge in property developments, spurred by the upcoming opening of the region's first casino. These factors collectively make the UAE one of the best countries for real estate investment in 2024.
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United Kingdom
The United Kingdom provides a secure and dynamic environment for real estate investors, characterised by a stable economy, a strong property market, and consistent growth, making it an attractive destination for overseas investors. The UK residential real estate market is forecasted to grow by 2.57% annually from 2024 to 2028, driven by housing shortages, which continue to push prices up.
London is a key driver behind the UK's appeal as a top investment destination. As a global financial hub with strong and persistent demand, it offers a stable property market and reliable returns. Its strategic location and excellent transport links, including five major airports and the Eurostar, ensure global connectivity. London's thriving economy, paired with a skilled workforce and continuous infrastructure improvements, enhances its appeal. The high demand for rental property, especially in central locations, supports property prices and rents.
The stability of the British pound further reduces foreign exchange risks. London's status as a global hub for business, culture, dining, and entertainment ensures its real estate market's resilience and universal appeal, even during economic downturns. By 2025, property prices are projected to rise with some prime areas experiencing even higher increases.
United States of America
The United States is a premier destination for real estate investors, offering a large and varied market backed by solid economic foundations. Major cities like New York, Miami, and Austin have shown strong performance, making them ideal choices for investment.
New York City, with its high demand, limited housing supply, strong economic growth, and global appeal provides excellent opportunities for capital appreciation and rental income. Miami, known for its sandy beaches and glamourous lifestyle is experiencing a booming tech scene, and benefits from Florida's no-state income tax, attracting both residents and investors. Austin, Texas, has seen significant population growth and housing demand, driven by major companies like Tesla and Apple setting up headquarters while availing of Texas' no-state income tax. These factors, combined with ongoing infrastructure improvements and strong market performance, make the USA a strong contender in real estate investments.
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Singapore
As one of the wealthiest countries globally with a strong economy, Singapore's property market has shown steady growth over the past decade. The average value of a square metre in the city centre exceeds $20,000, reflecting high demand and limited supply.
There are stringent rules for foreign investors, but they can purchase private apartments and commercial properties, which face fewer restrictions. The market is expected to grow by 6.5% annually over the next five years, driven by increased demand for housing and office space from multinational companies. With a thriving financial sector and strategic location in Southeast Asia, Singapore offers opportunities for capital appreciation and rental income making it highly attractive to foreign investors.
Japan
With a growing tourism sector, cultural history, and overall political stability, Japan is a good option for foreigners looking to expand their real estate portfolio into Asia. Tokyo is leading the charge with a busy job market, and high rental demand, already starting to experience significant appreciation. Cities like Osaka and Kyoto also present attractive options, with rich cultural heritage, tourism appeal, and more affordable property prices.
Japan's long-standing market stability and low interest rates further elevate its appeal, while recent trends indicate a shift from price stability to appreciation. This combination of factors makes Japan, especially its key cities, an excellent choice for real estate investment, with the potential for both capital gains and rental income.
Portugal
Investing in Portugal is an excellent way to diversify an investment portfolio in 2024 as the country’s stability and moderate economic growth provide a secure foundation for investors. Portugal’s property market is experiencing strong growth, with average house prices increasing by 7.8% in 2023. Key cities like Lisbon, Porto, and the Algarve have attractive rental markets, making them ideal for generating a steady income. The increasing wealth of the population further supports housing demand.
Despite some neutral factors like a decrease in building permits, Portugal’s stable economy and growing real estate market offer a reliable and potentially profitable investment environment.
Australia
Australia's real estate market has seen a surge in foreign investments, with $4.9 billion spent on 5,360 residential properties in the past financial year. The demand from international buyers remains strong, driven by investors and families purchasing homes for children studying and working in Australia. The country’s stable economy and safe political environment make it an attractive destination for property investment.
A national housing shortage and a growing population support property demand, keeping prices high despite economic uncertainties like inflation and potential interest rate hikes. Sydney stands out with its strong economy, high quality of life, and stunning natural beauty, making it a prime location for real estate investment. Investors in Australia can also benefit from tax deductions and potential capital gains tax exemptions.
Spain
Spain's real estate market is thriving, supported by a strong, diversified economy and government reforms that attract foreign investors. The economy is projected to grow by 8.4% over the next five years, so there is guarantee for stability and potential property value appreciation. Home prices have risen by 14.2% in the past five years, with significant demand for rental properties in cities like Barcelona and Madrid.
The Golden Visa Program also entices investors, potentially allowing buyers to secure residency. Despite rising mortgage rates, foreign investments hit an all-time high in 2023, particularly in Alicante. The limited supply of homes has driven prices up, with notable increases in new developments. Key regions like Catalonia, Madrid, and the Basque Country lead in property value growth, making Spain a prime destination for real estate investment.
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Final Words
Investing in real estate overseas is a fundamental pillar of asset diversification. It serves as a hedge against volatile markets, economies, and political uncertainties, offering the potential for capital growth and diverse cash flows across currencies. Beyond being a second home, renting out your property to tourists or long-term tenants can provide steady income to cover expenses or build savings in local currencies. Buying property abroad reduces market and exchange rate risks, safeguards against government seizure, and minimises liability concerns. It’s a strategic move that not only promotes financial stability but also enriches lifestyle choices with global opportunities.
