If you're thinking of investing in international property, we have the right list for you.
Words by Dyuthi Prakash in The Market · Nov 17th, 2019
It’s no surprise that the best way to make your money grow passively is by owning property, like any financial advisor will tell you. Whether we are in a pre or post-recession era, it’s always a good time to ensure that our savings are secure. The value of the property will definitely fluctuate during the recession, but as long as the property is rented out long term, you will receive a steady cash flow. In addition to this, owning a rental property means that it benefits you in two ways - your home’s value grows and so does the monthly rental yield. Either way, it's a win-win situation. We’ve done our research and summed up the best locations for you to invest in, so that you can rest easy knowing that your future property will be an unbeatable long-term investment.
1. London, Uk
The property market in London has been fluctuating in London ever since Brexit which makes spotting short-term trends difficult. “After such a large adjustment - even greater in international currency terms - London is starting to look like pretty good value.”, says Lucian Cook, director of Savills Research.
While some potential foreign buyers remain cynical and await the result of the Brexit deal, others have grown tired of waiting and have gone ahead to purchase their dream home, taking advantage of currency fluctuations. Nevertheless, it is no doubt that buying property in London as a non-citizen is a seamless process and also allows you to sign up for a mortgage, if needed.
London is a global financial and cultural hub, attracting a diverse and cosmopolitan population. The demand for housing, both for rental and purchase, remains consistently high. Over the years, London's real estate market has shown steady appreciation, which has led to capital gains for investors. The rental market in London is robust, offering attractive rental yields for property investors, especially in prime central locations.
2. Dubai, Uae
Despite the fickle nature of the real-estate market in the UAE, it is safe to say that it has matured in 2019, fueled by the impact of Expo 2020. With the UAE government rolling out measures to make buying property simple and convenient for expatriates, it can definitely be argued that owning property is a long-term investment in comparison to renting. With the advent of the short-term rentals market, property owners have various options to gain a good return on their property that exceed a 6% net rental return. There are various great property investment options in Dubai in areas such as Jumeirah Village Circle, Downtown Dubai & Dubai Marina with amazing payment plans on offer. Another advantage of owning property in Dubai is the tax-free advantages. The government allows foreign investors to buy freehold properties in certain designated areas, enabling them to own the property outright and enjoy full ownership rights.
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Palm Jumeirah ReadyGarden Homes AED 1,350,000 per year
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Foreign buyers have started to flock toward Spain’s real estate market after a decade-long slump, which is primarily due to the permanent residency options offered in the EU on purchases of £500,000 and above. Some of the top investment destinations for foreign nationals are the Canary Islands, the Balearic Islands and the Valencia/Alicante region, with more than 30% of total transactions.
In addition to this, foreign investors are attracted to the country’s culture; the Mediterranean sea, stunning beaches and relaxed lifestyle. Compared to some other European countries, Spain's real estate market can offer relatively affordable property prices, making it accessible for a wide range of investors. This certainly makes Spain an endearing location to invest in a potential residential property.
Investing in Turkish property comes with a plethora of benefits, including citizenship, strong rental yield and the ease of securing one. The expanding middle class in Turkey has increased the demand for residential properties and contributed to a stable rental market.
Following the revision of the citizenship law, investing in a US$250,000 property can now help you secure citizenship, while previously it was US$1,000,000. In addition to this, several updates to the procedures allow foreigners to buy property within just 24 hours, all under strict regulations. You can now afford a European lifestyle while paying just a fraction of what it would cost in Spain or Portugal, thanks to Turkey’s affordable living costs.
It is common knowledge that France has one of the most foreigner-friendly investments in Europe, since there are no restrictions on foreign ownership. Apartments are mostly held in two types of freehold - co-ownership and leaseholds, for up to 99 years, similar to Dubai. Furthermore, housing in France has been on a steady rise for a few decades now. From 1997 to 2007, housing prices rose 150% and ever since, owning French property is one of the surest ways to amass long-term wealth.
France has a stable and mature real estate market, which provides a sense of security for investors. It offers an excellent quality of life, attracting both tourists and residents. The appeal of its culture, cuisine, and landscapes contributes to the demand for properties. In major cities like Paris, Lyon, and Nice, there is a strong demand for rental properties, especially in popular neighborhoods and near universities and business districts.
According to a survey by Mastercard Inc., Bangkok was the world’s most visited city for the fourth consecutive year in 2018, ahead of Paris and London. This is certainly good news for any would-be property buyer, as it means steady rental yields due to the city’s expanding tourism. There are a few restrictions placed on foreigners who intend to own property - they can only own land leasehold and own 49% of a condominium, while a Thai national owns the rest. Despite the downsides, condo properties can be easily liquefied and foreigners are offered a simple exit strategy making it flexible and appealing for foreign buyers.
With its winding streets and beautiful coastlines, Portugal ticks all the boxes whether its you prefer urban living or a rural retreat. Compared to some other European countries, Portugal offers relatively affordable property prices, making it accessible for a wide range of investors. The property market in cities like Lisbon and Porto makes it very appealing for foreigners to invest as there are no major requirements nor much paperwork needed. If you buy a home for over £500,000, you are also entitled to a “golden visa” which allows upto 5 years residency. This makes it very enticing for foreign nationals who intend to retire in Europe to spend their formative years.