How to choose a country for investment in real estate? Five promising destinations and unusual projects
In the modern world, the issue of protecting our savings is urgent as never before, and investment in real estate is one of the most accessible tools. However, despite the simplicity of this instrument, every novice investor faces a number of issues, the main of which is «How to choose the country for investment so I can get a guaranteed income as quickly as possible?», «What does the ROI mean and why it is important to consider it?», and last «What property to choose for investment in order to rent it out successfully?». All answers you will find in the REALTING article.
Investing in real estate — simple knowledge that you must have
In the constantly developing world, one of the most famous methods of protecting savings is investing in real estate. The majority of novice investors as a rule choose residential properties and most of the time purchase an apartment or a house in one of the European or coastal countries. But how to choose a destination for investment correctly if you are running out of time to dive into international real estate market tendencies? Let’s have a closer look at this issue.
There are several investment options that basically boil down to two behavioral patterns in the real estate market:
- buying an apartment in a new building at the stage of construction in order to sell it later for a higher price;
- buying an apartment on the primary or secondary market in order to rent it out and get a monthly income.
Speaking of the first option, it’s important to understand the potential of the real estate market of any country. In the second case, besides this, it’s essential to consider the ROI which stands for Return on Investment. Here you can find out the information on how to calculate it, as well as the list of currently most popular destinations for investment in real estate.
In order to make a choice easier, REALTING has prepared five interesting proposals for the most promising destinations based on all observations.
Portugal. Apartments in a historical building will not get cheaper
Buying a flat in a new building and waiting for its value to rise is probably one of the easiest ways to invest in real estate. However, there is always the possibility of «getting it wrong». For example, the area where the house is located, the stage of construction, or even the construction company. But there are some properties where you can’t «get it wrong» because their value will only go up over the years. Such flats are unique and experienced investors tend to buy them first, keeping them for themselves or for VIP tenants.
This is exactly the kind of apartment now available in the Portuguese city of Porto, where an ambitious project is underway: a modern apartment complex in a historic building. The house is located close to the historic centre of the city, a UNESCO World Heritage Site, the São João National Theatre, the Fontainhas observation deck, the metro, the railway station, and the Porto promenade.
The residential complex consists of three different blocks (A, B, C), each characterised by features of Art Nouveau and early 20th-century palace architecture. There will be a total of 32 flats and 2 commercial shops in the complex. There will also be a basement with parking for 15 cars. The construction is planned to be completed by April 2023.
Flats here start at €230,000 and make an investor eligible for the golden visa for the investment program. This is interesting because, after five years of holding a residence permit in this country, an investor can apply for citizenship or a permanent residence permit in Portugal.
Lithuania. Modular houses as another expression of freedom
Experts were talking about the prospects of the Lithuanian real estate market back at the beginning of the year. Already then the cost of flats in major cities of this country grew by about 20% a year, and by the middle of 2022, the cost of «square meter» of housing in Vilnius ranged on average from €2500 to €3000. At the same time, on the wave of high demand there are already offers for €4500 — €5000 per sq.m. and higher. Such large cities as Kaunas, Klaipeda, and Palanga are not far behind the capital, showing stable growth in the cost per square meter of dwelling. This applies, of course, not only to flats but also to private houses, where construction costs have increased literally several times over the last 2 years.
At the same time, the Lithuanian real estate market continues to grow by leaps and bounds. Large international companies continue to relocate their offices in Vilnius, Kaunas, and other cities. This means that the demand for rental housing continues to grow.
In such a situation, the investor should pay attention to the most efficient options for housing, which will begin to bring profit to their owner immediately after the purchase. And one of these options is modular houses in the suburbs of Vilnius.
The «Prusu Namai» project is a cottage community in the suburbs of Vilnius with more than 300 residential and commercial units. The convenient location between the cities of Trakai and Vilnius allows not only to enjoy the environmentally friendly countryside air but also to have access to all the necessary modern infrastructure. You can reach Vilnius in just 30 minutes by your own car. And if a remote job allows you to spend more time at home, you can take a walk in the beautiful historical sites or relax by the picturesque lake nearby.
The cottages, which start at €122,000, are modular houses with a floor space of between 67 sqm and 200 sqm and with plots of land of up to 22 hectares. And the developer is willing to offer the cottage to suit literally any request — each owner can choose the layout that suits him best. In addition, efficient energy solutions owned by local residents will ensure the productive development of public greenhouses and promote a healthy lifestyle.
The «Prusu Namai» project is an excellent investment option in Lithuania’s fast-growing real estate market. Both long-term and short-term investments are available here.
Greece. Flats in a residential complex as a breath of fresh air
Greece needs no advertising among investors — the country has recently become incredibly popular. Compared to last year, foreigners are buying property in this country 67% more often. Of course, this has also caused an increase in the price per square meter of housing as flats in Greece in the second quarter of 2022 have risen by 9.4%. While the demand for rental housing in Greece has always been incredibly high, rents throughout the country have risen by at least 12% over the last year. You can read more about the Greek real estate market here, but in the meantime let’s take a look at a project that would be a great investment.
Vitruvius Investments, one of Greece’s leading real estate development and investment companies, offers its shareholders an exceptional approach and excellent investment opportunities in MELISSIA OXYGEN.
MELISSIA OXYGEN is a three-storey house located in the northern suburb of Melissia. The historical centre of Athens is just 35 minutes away, while the shopping centres of Kifissia and Maroussi are also nearby. The distance to the nearest hospital is approximately 2 km, to the underground 4 km. and to the airport about 25 km. Meanwhile, the municipality of Melissia is an area that combines all the benefits of modern urban infrastructure with the perks of suburban life. According to the developer, the project is well integrated into the local landscape with large parks, wide streets, and beautiful scenery.
There are only six residences in the complex. These will be luxury apartments with panoramic glazing and the opportunity to bring to life the most ambitious design fantasies. In addition to the beautiful apartments, future residents will be able to enjoy spacious common areas with a roof garden, children’s playground, and an outdoor gym.
According to the developer, this project combines affordable luxurious living with the tranquillity that the countryside has to offer, and it is ideal for new buyers and investors alike.
Prices here start from €395,000
Montenegro. Promising flats by the sea
Montenegro has been a discovery for investors over the last five years. This country combines all the benefits of modern civilisation with the splendour of the historical past. Montenegro has consistently become one of the most popular tourist destinations. The country attracts both those who like a «lazy» vacation on the beach and those who prefer active recreation in the mountains. Montenegro is especially sought after by tourists from Germany, France, Belgium, Egypt, and Israel. According to the Minister of Economic Development and Tourism, Goran Djokavic, Montenegro has a huge potential and all the prerequisites to attract rich tourists.
The prospects of buying a flat here are undeniable: the price of flats at the stage of excavation is strikingly different from their price after the commissioning of the building. On average, you can buy a flat in Montenegro at $1800 per square meter, but if it is a residential complex on the first coastline, feel free to multiply this price by 2 times.
In terms of return on investment (ROI), Montenegro is quite attractive. The ROI in the centre of large cities is 5.37%, and the ROI outside the centres is 5.09%. However, the most profitable from this point of view is, of course, flats by the sea — which are offered for sale in the SkyLine Resort residential complex.
SkyLine Resort is a luxurious residential complex on the coast of the Budvan Riviera in Becici. It’s a popular tourist destination as it offers options for both relaxing and active holidays. Just within two kilometres is the famous old town of Budva, the tourist centre of the country, where ancient architecture and modern attractions are intertwined.
Skyline Resort is a seaside residential complex just a two-minute walk from the pristine azure coast of the Adriatic. The residential complex consists of 142 apartments, spread over 14 floors. Skyline Resort apartments have a magnificent view of the mountains, the sea, and the peninsula of Sveti Stefan, shimmering in the night with the lights of houses and hotels.
Flats here start at €159,000. And it will be flat with a total area of around 39 sq.m. A four-bedroom flat with a total area of 183 sq.m. will cost €681,500.
Turkey. Flats on the east coast of Alanya
The real estate market in Turkey literally «exploded» this year from the rush demand for apartments and houses. People took all offers from developers and sellers in the secondary housing market in the hope of obtaining a residence permit in Turkey as soon as possible. The country’s authorities have even decided to close more than 1,000 of the most popular areas to obtain a primary residence permit — so high was the demand. In addition, the minimum investment threshold for obtaining Turkish citizenship for investment has also increased from $250,000 to $400,000.
Such high demand has led to a phenomenal increase in the prices of apartments in the majority of Turkish cities. For example, it is unlikely to buy an apartment in a new building in the Antalya region for less than €1000 per sq.m., and it will not be the most popular area. In coastal areas, the price per square meter reaches €5,000 — €7,000. As a result, apartments in first coastline buildings cost between €800,000 and €2,500,000.
In addition to the increase in the price of apartments, rental prices have also risen. And this means that it is even more profitable to buy an apartment with the purpose of lease. By the way, the return on investment (ROI) in Turkey, or in other words, the gross rental income in percentage terms, is 5.54% (in city centers). In the most popular areas, this rate reaches 8.5%.
That is why it is particularly interesting to pay attention to a project in one of the quietest and most picturesque parts of the Alanya coast — in Kargicak.
Kargicak is the most eastern district of Alanya. Here the ZERA HOMES company begins the construction of a modern and comfortable residential complex. In total there will be built 2 blocks with 36 apartments with an area ranging from 45 sq.m. to 84 sq.m. In addition, the complex includes a swimming pool, a hammam, a gym, video surveillance, a game room, a playground, a recreation area, a garage, a jacuzzi, and billiards.
Apartments are commissioned completely finished to move in. The apartments will be equipped with a steel entrance door, interior doors, a kitchen unit, plumbing, satellite TV, PVC windows and balcony doors with double glazing, and led lighting.
According to the developer, this is a house that meets all the buyers’ needs: comfort, safety, tranquility, and elegance. The unique location combines the peace of nature and the atmosphere of urbanism, away from the bustling city life of Mahmutlar. The sea is just 750 meters away and it takes only a few-minute walk to get to the sea while enjoying the picturesque fruit groves and beautiful streets of the town.
The price of apartments here starts from €110,000. For the convenience and comfort of customers, the developer offers several payment options:
- A discount of 4% if you pay 100% of the price of the apartment
- 2% discount if you pay 65% of the total price of the apartment
- Installment payment for 12 months with a 30% down payment.
Opening new destinations as an opportunity to earn a stable income
Novice investors can start with popular real estate markets such as Turkey or the UAE. In these countries, the value of apartments will only grow, and rental prices will provide a comfortable life for property owners. By the way, in some cities of the UAE, the return on investment (ROI) reaches 50.58%, and this is probably a record.
Do not forget that many countries offer citizenship for investment in real estate. One of the most beautiful islands in the Caribbean, Grenada, is worth considering. Grenada citizenship for investment is one of the most popular programs now, which provides its participants with incredible opportunities.
The international platform REALTING is ready for cooperation with companies from all over the world.
