Grow your portfolio: Top places for overseas property investment
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 top countries for real estate investment.
Top countries for real estate investment
If you have decided to build a nest egg for the future by investing in the overseas market, make sure you do your homework. The procedures involved in other countries might work differently compared to those in your home country, so be prepared to navigate through all of that. When it comes to filing taxes, you also should consider talking to lawyers and financial advisors before taking the leap.
To give you a fair comparison of prices versus rental yields we have examined the cost per sq. m. and average monthly rents for apartment units in all these countries.
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, so investing in Cyprus’ real estate market 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: 4.93%
- Effective Rental Income Tax: 3% on 75% of the gross amount
- Average Rent: USD 651 to USD 792
- Per sq. m. cost of an apartment: USD 2,229
United Arab Emirates
If you are looking for luxury properties with an affordable price tag, the UAE is your best bet. 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. Out of all the emirates, Dubai is the most popular destination to buy residential units.
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 the place to be!
- Rental Yield: 5% to 8%
- Tax: Tax-free!
- 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 perfect for investing in the Greece property market include Athens, Thessaloniki, Naxos and Lesbos. To start your property journey, you could try travelling to Greece from the UAE and taking a look at the country yourself.
- Rental Yield: 5.22% (2023, Q3)
- Effective Rental Income Tax: 15% to 45%
- Rent: averages USD 484 for one person
- Per sq. m. cost of an apartment: USD 2,600
Türkiye (Turkey)
The coastline, beaches and proximity to the Mediterranean make Türkiye an attractive place to live in – adding in the low cost of living and good quality of life makes it even better. Lately, the country is also gaining popularity as a destination for foreign property investments. The years 2022-23 saw a boost in Türkiye’s economy with tourism, along with massive foreign investments pouring into the country in 2023.
In fact, property prices went up by 133% in 2023, which is a pretty massive increase. Antalya, Bodrum and Bursa are the top destinations for foreign property investors seeking properties in this gorgeous country.
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: 6.36 %
- Effective Rental Income Tax: from 15% to 40%
- Average Rent: USD 800 to USD 1,300
- Per sq. m. cost of an apartment: USD 771
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, seeing a 1.5 per cent growth in property prices in 2022-23. 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: 6.8% and 9.5%
- Effective rental income tax: 15% to 30%
- Average rent: USD 2,075
- Per sq. m. cost of an apartment: USD 600 to USD 1,000
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 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% (2024, Q1)
- Effective Rental Income Tax: 19% flat rate (this is deductible if you’re an EU/EEA citizen)
- Average Rent: USD 795
- Per sq. m. cost of an apartment: USD 6,602
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 other European countries. However, keep in mind that France (especially places 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: 4.56% (Q4, 2023)
- Effective Rental Income Tax: 20% to 30%
- Average Rent: USD 768 for a one-bedroom apartment in Paris
- Per sq. m. cost of an apartment: USD 9,733 (in major cities such as Paris)
Frequently Asked Questions
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.
Several countries 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 tops this list for being the safest country in the world, 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. Besides these countries, many people also make overseas property investments in the USA and UK – the most known destinations. You can expect a 4.75 per cent rental yield by investing in the UK and the USA that can offer you a 10.6 per cent yield.
If you have a million dollars to invest, check out the properties around the world that you can buy with $1M. And for more property stories, stay tuned to MyBayut, the UAE’s favourite property blog