Recent sales of Excelion company show the growth of the popularity of Turkey as a country for buying property according to Motti Gruzman. Vladislav Nemirovsky from MGR Capital proves this statement with recent company’s reports
Investing in real estate is a smart way to diversify your portfolio and earn passive income. With property prices rising globally, it might be a great time to consider adding international real estate to your investments.
Why buy property abroad?
- Recurring income. Rent it out short, mid, or long-term. The rental income can cover costs and generate passive profit over time.
- High returns. In a growing market, your property’s value can increase quickly. A good location can boost value, sometimes even without renovation.
- Diversification. Investing abroad helps diversify your assets, reducing investment risks.
- Asset protection. Investing in another country can safeguard your assets if your home country faces political or economic instability.
- Residency & citizenship. Some countries offer residency or citizenship with property investment, providing global mobility along with your investment.
Italy
Italy offers affordable housing and many opportunities in Europe’s real estate market. In Q1 2023, the market saw investments around €1 billion, with predictions of 0.5% to 1% growth in the residential sector. There are budget-friendly homes under €35,000 ($45,000) to suit various needs. Investing in Italian property not only offers solid returns but also access to rich cultural heritage, stunning views, and the Italian lifestyle.
Most foreigners, including EU residents and nationals from countries with bilateral agreements, can buy property in Italy without restrictions. If your country isn’t part of these agreements, check if Italian citizens can buy property in your country. If they can, you’re eligible to invest in Italy.
An example of real estate: Castellaro Golf Resort
The United Kingdom
The UK’s residential real estate market is expected to grow by 2.57% annually from 2024 to 2028. Housing shortages and low interest rates are driving demand, which is pushing up property prices and making it attractive for foreign investors.
While London is a major market, cities like Manchester and Birmingham are also gaining interest due to their development and growth potential, offering more affordable options with strong ROI prospects. The UK’s reliable property laws make it a secure investment environment.
City-centre properties in the UK average over $5,000 per square meter, with London prices nearly three times higher, making it one of the most expensive cities globally.
Spain
Spain’s vibrant food, sunny climate, and rich culture make it an appealing real estate investment destination. The country is stable, with strong long-term property value growth.
If the Spanish lifestyle appeals to you, now is a good time to invest. The Golden Visa program currently allows you to obtain residency by purchasing property worth at least €500,000. However, the Spanish government may discontinue this option soon, so it’s wise to act while it’s still available.
An example of real estate: Alva Park
Germany
Germany’s real estate market is influenced by housing shortages and negative interest rates. In 2021, it saw a record number of transactions, driven by strong foreign investment. As Europe’s largest economy, Germany is stable and offers a high quality of life.
Although the market faced an 8.4% drop in house prices in 2023 — the first decline since 2007 — it’s expected to recover slowly, with projected annual growth of 3.55% from 2024 to 2028.
Many Germans prefer renting over owning, creating opportunities for foreign investors. Germany offers tax benefits for rental properties, and rental income often exceeds interest costs. Despite high property prices — averaging €5,700 per square meter in city centers — the market remains an attractive choice for investors.
France
France is a top real estate destination, especially in Paris and the French Riviera. Paris has a steady property market, while the Riviera attracts tourists, boosting demand for vacation rentals. Property prices in France are stable, with potential for growth.
From 2024 to 2028, France’s residential real estate market is expected to grow by about 2.5% annually. The country’s stable economy and low mortgage rates make it an appealing choice for investors. Property values average over €6,000 per square meter across France, with Paris prices reaching up to €12,000 per square meter.
Turkey
Turkey is an attractive real estate market with significant growth potential and affordability. It is projected to expand from $99.05 billion in 2024 to $168.11 billion by 2029, with an annual growth rate of 11.16%. Istanbul, where Europe and Asia meet, is a key investment hotspot offering diverse opportunities.
Despite challenges like high inflation (17.14%) and a weakening Turkish Lira (down 19.6% against the US Dollar), Turkey remains strong for foreign investors. Recent regulations, including easier access to citizenship with a $400,000 property investment, boost its appeal. With average city-center property prices around $2,000 per square meter, Turkey’s affordability and strong growth prospects make it a top investment choice.
Greece
Greece is an attractive real estate market, especially in Athens and the Greek islands, with rising property prices and a recovering market. The Golden Visa Program allows non-EU citizens to obtain residency by investing at least €250,000 in real estate. Starting August 31, 2024, the minimum investment will increase to €800,000 in popular areas and €400,000 elsewhere. Investors who act before August 31 can still benefit from the lower threshold.
The Golden Visa offers a five-year renewable residency permit for investors and their families. Property prices in Greece rose by at least 12% in 2023, but growth may slow with new regulations. On average, city-center apartments cost around €3,000 per square meter.
An example of real estate: Kos Boutique Hotel
Cyprus
Cyprus is a strong option for real estate investment, particularly in Limassol and Nicosia. The country’s friendly tax system and residency benefits enhance its appeal. Investors can obtain permanent residency with a minimum €300,000 real estate investment. Cyprus does not tax global income, including dividends and capital gains, for permanent residents.
The market benefits from steady demand from expats. Property prices are expected to grow about 4% annually. Currently, average city-center apartment prices are below €3,000 per square meter.
Portugal
Portugal is becoming a popular choice for real estate investment, especially in Lisbon, Porto, and the Algarve region. The Golden Visa Program allows foreign investors to secure residency by purchasing property worth at least €500,000, with potential for permanent residency or citizenship after five years.
The market is rising, with prices increasing around 7.8% in 2023 due to high demand. In Lisbon and Porto, city-center apartments average €3,500 to €4,500 per square meter, with Lisbon prices reaching up to €6,000 per square meter. Portugal’s stable economy, pleasant climate, and high quality of life make it an appealing choice for investors seeking both value and lifestyle.
