Henley & Partners, a consultancy specializing in residency and citizenship by investment, has developed a unique index to measure the countries with the best real estate for investment by migration.
As Henley & Partners indicates, in the last year inquiries to buy properties abroad and thus diversify their business portfolio increased by 80% in the search for protection against market volatility in a period of high global inflation.
How to know if it's a good idea to buy a property abroad
The index reveals which countries offer the best returns for foreign investors in the real estate market, who can also settle there or obtain citizenship.
The index takes into account about 30 parameters and more than 300 data points to compare 16 different home buying programs for foreigners around the world.
Therefore, factors such as the following are taken into account:
- Quality of life in each country and its GDP
- The minimum amount of real estate investment or potential rental income, plus associated property costs
- The period of ownership of real estate and the ease of sale
- Residency requirements
- The possibility of making the transaction with cryptocurrencies
The 6 best countries to buy property as an investment
1. Emirate of Dubai
Dubai, the largest city in the United Arab Emirates, takes first place for its excellent relationship between property value per square meter and potential rental income, highlighting the low price of real estate in contrast to other major international centers.
2. Spain
In Europe, Henley & Partners highlights Spain in second place for its economic strength thanks to the highest score in terms of its Gross Domestic Product (GDP).
3. Montenegro
According to the consultancy, this small nation is now a key market for real estate investors and those seeking a second home in Mediterranean Europe, on the shores of the Adriatic Sea.
4. Türkiye
The index highlights Turkey because investing in the real estate market requires "relatively low" amounts while residency requirements are minimal.
5. Thailand and Portugal
Both the Asian nation and the European country earn fifth place in the Henley & Partners index as good options for investing in properties abroad in terms of price-quality ratio.
In the case of Portugal, the Golden Program of Residence Permits stands out, which makes the country the most sought-after for investment in real estate abroad.
The consulting firm highlights the low amounts needed to enter the market, the ease of selling, and the compatibility of businesses with cryptocurrencies.
¿Why investing in real estate abroad is a good idea?
According to Dominic Volek, the managing director of Private Clients at Henley & Partners, the pandemic boosted the purchase of real estate abroad by investors, including those from rich countries with "stronger" passports, meaning greater access to different destinations without the need for a visa.
“Real estate internationally has always been a reliable asset class due to its long-term stability,” Volek emphasizes. He adds, “Real estate investment migration programs have the added benefit of improving global mobility.”.
This is due to the possibility of having different passports, which expands "personal access rights as a citizen or resident of other jurisdictions" and allows for more options to "work, study, retire, invest, and live with family.".
Along the same lines, Thomas Scott, Managing Director of Real Estate at Henley & Partners, points out that buying a property in another country not only opens the door to potential gains over the asset's lifetime, but can also "provide rental income in a strong and stable currency.".
Taken from LR (La República).
