25 best countries to buy real estate
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Creating Cosmopolitans. All the way together to obtain Citizenship by Investment
Investing in overseas property helps secure funds, provides stable passive income, and can often lead to residency or citizenship benefits. Let's look at the top countries for property investment, which boast strong economies, growth opportunities, and great living standards.
7 countries offering residency by investment in real estate
1. In Spain, investors buying property worth €500,000 can secure a temporary three-year residence permit, renewable for five more years if the investment continues.?
Expect house prices to rise by at least 2.5% annually, with city centre apartments averaging €3,500 per square metre.
2. In Greece, non-EU citizens can obtain a 5-year residency by investing at least €250,000 in local properties. House prices, which rose 12% in 2023, are expected to stabilise, with city centre apartments costing around €2,700 per square metre.
3. In Cyprus, a €300,000 investment grants permanent residency. The demand for Cypriot properties is consistent, with prices rising at about 4% annually. Currently, the average city centre apartment price is below €3,000 per square metre.
4. The relaunched Hungary Golden Visa allows a 10-year residence permit for a €500,000 residential property purchase, effective January 1st, 2025.?
The Hungarian real estate market anticipates a 4.99% annual growth through 2028, with city centre properties valued at about €2,800 per square metre.
5. In the UAE, real estate investments of $545,000 or $204,000 qualify for 10-year and 2-year residence visas, respectively. Dubai's booming market saw an 18% increase in house prices in 2023, with central apartments nearing $4,800 per square metre.
6. Brazil offers permanent residency in exchange for foreign real estate investments of $126,000 in northern regions or $185,000 in other areas, including major cities like Sao Paulo and Rio. With prices around $1,700 per square metre and an expected annual growth of 5.4%, Brazil presents an affordable option.
7. Panama is known for its stable economy and modest real estate market growth of 1.95% annually. A $300,000 investment yields a residence permit, and city centre properties cost under $2,500 per square metre.
7 countries granting citizenship after real estate purchase
1. Malta offers citizenship by naturalisation for exceptional services by direct investment that includes a €600,000 contribution to the National Development and Social Fund, a €10,000 charitable donation, and either renting real estate at €16,000 annually for five years or purchasing a property worth at least €700,000.?
The market shows a stable supply-demand balance, with property prices projected to rise by 4% in 2024 and 4.2% in 2025. City centre apartments average €3,750 per square metre.
2. Turkey provides immediate citizenship to investors and their families when they invest $400,000 in real estate, which must be held for at least three years.?
However, it’s crucial to consider Turkey's ongoing hyperinflation; as of March 2024, inflation nearly hit 70%. While nominal house prices might rise by 68%, real growth, after adjusting for inflation, stands at just 1.4%.?
Despite this, Turkish real estate remains comparatively affordable, with city centre properties averaging around $2,000 per square metre.
3. In St Kitts and Nevis, investors can gain citizenship by purchasing government-approved real estate worth at least $400,000 and holding it for 7 years. These properties, which can be rented out, typically yield annual returns of 2 to 5% and see yields of about 4% per year.?
4. Grenada offers a more affordable citizenship route with a $270,000 investment in real estate, which can be resold after five years. Investors aren't required to reside in Grenada and can expect annual rental yields of at least 4%.
5. In Antigua and Barbuda, investors can obtain citizenship by investing $325,000 in approved real estate. Properties must be held for five years but can be rented out, typically yielding about 4% annually.
6. In Dominica, a $200,000 real estate investment grants citizenship with a minimum holding period of three years. The real estate market mirrors regional trends, with a 4% annual appreciation and similar rental yields.
7. The Egyptian citizenship by investment program requires a $300,000 real estate purchase, and the property is eligible for sale five years after citizenship.?
The Egyptian market is dynamic, with affordable urban centre properties at about $550 per square metre and expected annual price increases of 8—11%.
Countries with strong economies to invest in real estate
The United States. Despite being one of the world's costliest real estate markets, the US remains a top choice for international investors. In 2023, foreign investors poured $53.3 billion into US residential properties.?
The market grew by 2.71% in 2023, with city centre properties averaging around $3,300 per square metre, though prices vary widely across the country.?
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States like Florida and Texas attract investors with no income taxes, while California and New York offer higher property values and returns.?
Germany. Facing its first housing price decline since 2007, with an 8.4% drop in 2023, Germany's real estate market is currently challenging but expected to recover gradually, projecting an annual growth of 3.55% from 2024 to 2028.?
With over half the population renting, opportunities abound for foreign investors, especially in buy-to-let scenarios. Despite high prices, averaging €5,780 per square metre in city centres, the rental income often surpasses mortgage interest, enhanced by various tax benefits.
The United Kingdom. Predicted to grow at 2.57% annually from 2024 to 2028, the UK's residential market is buoyed by ongoing housing shortages and low interest rates, sparking significant demand.?
Prices are high, with a square metre in city centres costing over ￡5,000 on average. In London, prices triple, reflecting its standing as one of the priciest cities globally, further appealing to international investors.
France’s residential real estate market is poised for a steady growth of 2.5% annually from 2024 to 2028, driven by a stable economy and low mortgage rates.?
Nationwide, the average property value stands over €6,000 per square metre, but this figure nearly doubles in Paris, reaching around €12,000.
Switzerland is known for its financial stability but presents some hurdles for foreign property buyers. Non-residents need a special permit and can only buy in designated holiday zones. The properties are restricted to 200 square metres each and cannot serve as primary residences. Despite these limitations, Swiss real estate prices are high, averaging just below €14,000 per square metre, with an annual growth rate of 2.77%.
Australia maintains stringent rules for non-residents, allowing them to only purchase new constructions or vacant land. Temporary residents can buy existing homes but must sell them upon departure. All such transactions require approval from the Foreign Investment Review Board.?
The market is on an upward trajectory and is expected to grow by 3.57% annually over the next five years. City centre properties average around $7,300 per square metre.
Countries with the biggest real estate market growth
Portugal. Even though real estate is no longer a route to residency, Portugal continues to attract foreign investors, with house prices increasing by 7.8% in 2023. Average prices in city centres are below €3,500 per square metre, but in Lisbon, they rise above €6,000.
Singapore's real estate market is thriving, with an expected annual growth rate of 6.5% over the next five years. Current city centre properties command prices over $20,000 per square metre.?
Foreigners without permanent residency are limited to purchasing private housing, such as apartments or condos in buildings under six stories, with fewer restrictions on commercial properties.
Slovenia's real estate market remains robust, with 5.7% year-on-year growth in house prices as of the third quarter of 2023. The average city centre property costs about €4,200 per square metre.?
EU citizens face no buying restrictions, while non-EU citizens can purchase property if reciprocal ownership rights exist.
The real estate market in Luxembourg is set to grow by 5.2% annually from 2024 to 2028, with city centre properties exceeding €10,000 per square metre. Coupled with some of Europe’s lowest mortgage rates at an average of 2.42%, Luxembourg remains a highly attractive market for property investment.
10 pros and cons of investing in real estate abroad
The main benefits for property investors are the following:
Risks of investing in foreign real estate. Political and economic instability, such as changes in government policies and economic downturns, can erode real estate values and investor confidence.?
Besides, legal complexities in property ownership, foreign investment, and taxes vary by country and can impact investments unpredictably.?
Currency fluctuations may also reduce investment value and returns.?
Furthermore, lack of market transparency and cultural differences can hinder informed decisions, increase fraud risk, and complicate negotiations and property management, leading to potential costly errors.
Key things to remember about real estate investment
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