TOP 6 countries for investment in foreign real estate in 2024. Expert opinion

Investing in real estate abroad is becoming an increasingly popular way to save and increase funds. But how to choose the best destination? In this article, together with market expert, director of the foreign real estate agency “Vip Realty Club” Ekaterina Kotlyarova, we will look at six countries that are of interest to investors from countries outside the European Union, and we will explain why these areas are the most attractive today.

Ekaterina Kotlyarova is the head of the foreign real estate agency “Vip Realty Club”, the head of the community of Russian-speaking experts in more than 18 countries.

Georgia

At the moment, Georgia occupies one of the leading positions among countries for investment. The two main regions in demand are Tbilisi and Batumi. Here are the main reasons for investor interest:

• Georgia is experiencing impressive growth in its real estate market. The average growth rate is 30%-50% per year.
• Low entry threshold. On the coast of Batumi, you can start investing with only $30,000, which makes this country accessible to many investors. Moreover, registration of ownership of purchased real estate at the Ministry of Justice takes only one day, which greatly simplifies the procedure.
• There is no need to confirm the origin of the funds used for the purchase.
• No property tax.
• The guaranteed return on purchasing a home in Georgia is 5%

Purchasing real estate in Georgia for an amount over $100,000 opens up the possibility of obtaining a residence permit. Investors can also enjoy visa-free entry and stay in the country for 364 days a year, giving them freedom to move and manage their investments.

Potential risks include a slowdown in real estate price growth.

Apartments in Tbilisi are more expensive than in Batumi and are usually sold without renovation. The price of an apartment largely depends on the class of building and location.

Thanks to the influx of immigrants into the country and the rapid development of the economy, rental rates in Tbilisi have skyrocketed. As a result, the profitability of real estate exceeded 10%.

In addition, do not forget that Tbilisi is the capital of Georgia, and in capitals real estate is always in demand. People come here to live, work and study, so a further increase in property values is inevitable.

Northern Cyprus

Another interesting destination now is Northern Cyprus, where the tourist season lasts for 6-7 months. However, unlike Georgia, visa-free entry is only possible for 90 days.

Reasons for investor interest in purchasing property in Northern Cyprus:

• A system of interest-free installments for up to 84 months, which is equivalent to 7 years. Payment can be made in a variety of ways including cryptocurrency, bank transfer and cash
• There is no need to confirm the origin of funds.
• Families are given the opportunity to obtain a residence permit for 1 year upon payment of 30% of the cost of the property.
• The property is rented with a full range of services, including repairs and partial furnishings.
• The opportunity to receive international education and open your own business makes this country attractive for long-term plans and development.

Property prices in Northern Cyprus have increased significantly recently, and now start from around $96,000. Guaranteed rent from the developer – 8%.

There are also risks. The status of an unrecognized state raises doubts among some investors, while others, on the contrary, are attracted due to the growth potential.

Thailand

Thailand attracts an annual influx of 25-30 million tourists, making it an ideal investment destination. The regions of Phuket and Pattaya are of main interest to foreign investors. Phuket is a booming investment market, while Pattaya is experiencing rising property prices.

It should be borne in mind that purchasing real estate in Southeast Asia involves an unusual form of ownership. Investors can choose between two forms of ownership: Freehold (full ownership) and Leasehold (ownership for 90 years).

Reasons for interest in buying property in Thailand:

• The country is friendly to foreign investors and has a convenient infrastructure for international money transfers, making financial management easier.
• Year-round income is one of the key advantages.
• Apartments are usually provided with full designer finishing, which saves time and resources. An additional bonus is the low cost of real estate registration.
• The guaranteed return is 6-8% when renting and 30% when buying during the construction phase.

From November 1, 2023 to April 30, 2024, citizens of Russia, Belarus and other countries can enter without a visa for 90 days. As for a long-term visa (analogous to a residence permit), it is issued when purchasing real estate for an amount of $300,000 or more.

Property prices in Pattaya start from $50,000, and in Phuket from $120,000.

Risks for investors are minimal provided they choose the right location and a reliable developer. It is also important to consider that in Pattaya real estate can only be rented out for a long-term period or through a management company.

Bangkok, Thailand

Indonesia (Bali)

Bali, considered one of the most popular and scenic holiday destinations, is also an excellent place to invest. The tourist season here lasts 365 days a year.

Indonesia, in particular Bali, is a relatively new region for investment with high growth potential. This is due to the limited area for development.

Tourist locations on the island are often 80-90% full, ensuring constant demand for rental properties and stable incomes. The limited land leads to a constant increase in the cost of real estate in Bali - 15-20% per year, while the net profit from renting out housing in Bali is 11-15% per annum.

Just like in Thailand, you can choose the form of ownership here: Freehold or Leasehold. And here is also all the real estate on the island. Bali is for rent fully furnished, turnkey.

For citizens of third countries, a visa on arrival costs $35. The visa is valid for 30 days (can be extended for another 30 days). There is also an analogue of permanent residence, which is issued for 5 years.

Property prices start at $130,000. Guaranteed profitability – 10%.

Risks. This is a new market with an undeveloped core of developers, some of whom have poor quality of construction and services. In addition, there are many nuances of registration - for example, the Freehold form of ownership is only possible when registered as a legal entity.

UAE

The UAE is considered one of the most stable economies in the world, which provides investors with the reliability and security of their investments. The UAE is also famous for its high level of security. Let's talk in more detail why buying real estate in the UAE is interesting for investors:

• Most types of income are not taxed.
• Government organizations such as the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA) protect investors' interests and ensure the legality of transactions.
• Investors can obtain residency in the UAE for a long period - up to 10 years.
• Resident visa for 2 years (with the possibility of extension) when purchasing real estate from $205,000. This visa gives the right to apply for residency to other family members under a sponsorship program.
• Resident visa for 10 years when purchasing real estate from $545,000. Allows the sponsorship of families, domestic staff and skilled workers.
• Investors can purchase real estate in the UAE remotely using various methods of transferring funds.
• Developers in the UAE often provide flexible payment plans with installments of up to 84 months, allowing you to pay off part of the installment plan through rental payments. When purchasing real estate, a developer in Ras al Khaimah issues visa packages and business licenses for two people for 3 years with an extension up to 12 years as a bonus.

Real estate prices in the UAE start from $150,000. Guaranteed rental yield or return on investment - 6-8% per year on invested funds (for certain projects).

Premium locations provide a high ROI – up to 17% per annum.

Currently, there is active development of the real estate market in other emirates — Abu Dhabi, Ras Al Khaimah, Sharjah. The start of construction of the UAE's first and one of the world's largest casinos in Ras Al Khaimah is contributing to a multiple increase in the cost of real estate and rentals in this region.

Despite stability, security and political neutrality, there are also risks here, including: the legally enshrined right of developers to delay construction for up to 12 months.

Turkey

Turkey is attracting the attention of global investors as one of the most promising countries for real estate investment, even though the Turkish real estate market is currently frozen (mainly due to problems with obtaining a residence permit).

Turkey promises investors reliable and high rental income. Some projects in Turkey offer guaranteed purchase of real estate, which provides an additional level of protection and certainty.

When purchasing property in Turkey, investors and their families can still obtain a residence permit and even citizenship. However, now it is better to further clarify this issue, because there are “open” and “closed” areas for obtaining a residence permit when purchasing real estate. At the same time, let us remind you that the minimum entry threshold to obtain a residence permit when purchasing real estate in Turkey is now $200,000 (more about the new rules for obtaining a residence permit in Turkey).

Real estate prices – from 50,000 Euro. Guaranteed rental yield of 5-7% per annum. There is a guaranteed profitability from resale with a buyback option. It is also possible to sell real estate in shares in Turkey.

Possible risks: the main question for an investor is the potential for price growth. In some regions in 2023 there was a jump in prices up to + 100%, but at the moment the market may stagnate in a number of regions. Also, changes in laws regarding periods of residence and residence permits inevitably lead to a slowdown in the market.

6 properties in popular destinations

To summarize, at the moment these 6 countries are in greatest demand among investors, especially from countries outside the European Union. The choice falls on one country or another depending on the goal, objectives and budget of the investor. At the same time, I consider the key factors when choosing investment property to be the potential for profitability during resale and rental, as well as the ease of obtaining a residence permit and the possibility of living without a visa. The next priority factors are such factors as the possibility of obtaining installment plans and mortgages, as well as the possibility of creating a business in the selected territory.