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International Real Estate Experts: 6 Best Countries To Buy Property in the Next 5 Years
Story by G. Brian Davis - Yahoo Finance
Buying real estate overseas is no trivial decision, however. It comes with plenty of risks — and plenty of roadblocks. In particular, investors should pay close attention to a country’s political stability, economic stability, population growth, tax policies, and legal access to both foreign property ownership and long-term residency.
United Arab Emirates
“Dubai remains a hot market for buyers from around the world,” notes Stuart Siegel, Head of New Developments at international real estate agency Engel & Völkers. “Many international buyers discovered it during the Covid pandemic and continue to flock there.”
I lived in the UAE for four years myself, and can attest to just how international Dubai and Abu Dhabi are. The country offers political and economic stability, population growth, and extremely friendly tax policies.
The UAE charges no personal income taxes or property taxes, although it does charge a 4% property transfer tax (usually split between the buyer and seller).
You have several options for residency in the UAE as well, including an option for real estate investors who buy property worth at least two million dirhams (around $545,000). Read up on residency options at the UAE immigration website.
France
Seigel recommends buying property in France as a foreigner: “The Paris market is experiencing a significant uptick in international buyer activity after the Olympics.”
Of course, Paris has some of the highest real estate prices in the world. Elsewhere in the country, though, you can find plenty of bargains, with access to beaches, skiing, wine country, and, of course, rich history.
France enjoys a stable economy, and despite a reputation for shrill political protests, actual government policy remains quite stable over time. Mortgage rates are low compared to many European countries, and France imposes few barriers to foreign real estate ownership.
Just don’t expect to buy your way into French citizenship or residency — at least not through real estate. The country does offer a path to residency for entrepreneurs and business investors however.
Japan
Yes, Japan has a negative birth rate and an aging population. However it enjoys enormous tourism, and it has started cracking open the door to immigration, albeit with far more reluctance than Western countries.
Graham Hill, a real estate consultant with Find Hokkaido Agents, provides some historical context. “Japan experienced a property boom in the late 1980s that collapsed, and created deflation and economic stagnation in Japan for almost 20 years. Declining real estate values set expectations that real estate in Japan does not appreciate. Recent evidence shows that is no longer true, real estate in Japan in cities like Tokyo, Sapporo, and Fukuoka is booming.” Hill points to a September 2024 write-up by The Asahi Shimbun showcasing increasing land values for three years in a row.
“Japan was already quietly considered a great place to invest, because it is a safe country, politically stable, and has a reliable justice system. Now that property values are rising, the momentum in the market is increasing.
Finally, Hill points to booming tourism. “Japan National Tourism Organization (JNTO) data shows 3,292,500 international travelers to Japan in July 2024, the highest number ever recorded and 42% higher than a year earlier. Hotels are full in most major cities, which means that commercial real estate in that sector is profitable, and new real estate acquisitions and construction are adding to the real estate boom.”
Uruguay
This tiny country of 3.5 million residents offers political and economic stability, higher literacy rates than the US, and universal health care — all with lower tax rates than the US.
It also produces outstanding wines (try the tannat), beef, and excellent seafood from its Atlantic beaches.
“Unavoidably, Uruguay’s stability and success have come at a cost,” shares Luke Babich of Clever Real Estate. “The country’s cost of living is the highest in Latin America.”
This hidden gem does offer a path to residency through buying real estate. However, it requires that you spend at least 60 days in the country each year. You can, however, buy property there without long-term residency.
The Bahamas
Bahamian-American real estate veteran Tim Rodland founded Rodland Real Estate (RRE) as a luxury real estate brokerage in the Bahamas. “The Bahamas has many tax benefits, including no income, capital gains, dividends, corporate or inheritance taxes. This makes it an attractive country for successful individuals to invest.”
It doesn’t hurt that Americans can easily travel to The Bahamas from the East Coast, and it enjoys a reputation for luxury and natural beauty.
“There is a growing demand for private islands as luxury investments due to their exclusivity and privacy. As demand for these islands increase, they have shown to be valuable investments.
“Beyond personal use and vacation rentals, private islands in The Bahamas can also be turned into a luxury resort, featuring boutique hotels, shopping, food and beverage.”
Just don’t expect to buy a private island on a lean budget.
Hungary
“Hungary entices outsiders with low tax rates, with a flat personal income tax rate of 15%,” explains Babich.
Hungarian property prices have skyrocketed over the past decade, averaging 14% annual growth according to golden visa servicer Immigrant Invest.
Speaking of golden visas, you can obtain ten-year residency with a real estate investment of €500,000. While you don’t need to be a resident to buy property in Hungary, you do need the approval of the Land Registry. You’ll need help from a local lawyer, but it won’t cost you an arm and a leg.
Having visited many times, Budapest is one of my favorite cities in Europe, with its rich history, beautiful architecture, and affordable cost of living. You get two cities for the price of one, with the distinctly unique Buda and Pest sides of the Danube.
