Where Foreigners Most Often Buy Homes in 2024

In the current situation of global financial/political instability and unpredictability, real estate investments can provide much-needed peace of mind. In recent years, the issue of capital preservation has been more acute than ever. And despite the continuing and worsening financial problems, interest in foreign facilities has remained. The Global Relocate team conducted an in-depth study of the situation and demand and found out where foreigners most often buy housing in 2024.

It is important to note that according to Forbes data for the first half of 2024, in comparison with the same previous period, citizens of various countries of the world made 15% more transactions with foreign real estate. At the same time, transactions have a close connection with relocation to other countries, since the purchase of housing becomes one of the available ways to obtain a residence permit through the investment legislation of the chosen country.

The leaders traditionally include Turkey, the UAE, and Thailand. At the same time, according to statistics, over the 6 months of 2024, the demand for real estate in Thailand increased by 65%. And this fact clearly demonstrates the reversal of the interest of foreigners, demonstrating the flow of capital from the market of Western countries to the states of Southeast Asia. Due to the adoption of restrictive measures, transactions in the Caribbean have almost completely stopped. At the same time, previously unpopular destinations began to appear in statistics, for example, Vietnam, Qatar, Cambodia, etc.

TOP 10 countries

This year, investors have significantly expanded the list of countries to invest in. At the same time, it is not uncommon for objects to be purchased simultaneously in several regions. Experts' forecasts indicate continued interest in foreign markets and, despite surges of interest in exotic countries, will return to traditional destinations in Europe, Asia and the Middle East in the near future.

Turkey

One of the main advantages of choosing Turkey as a country for buying real estate is the favorable exchange rate. The Turkish lira is heavily depreciating against major world currencies, which has made the market more accessible to foreign investors. This fact allows you to buy objects at a lower price and potentially make a high profit from the subsequent lease or sale.

In the first half of the year, foreign investors bought more than 2,400 commercial and residential buildings. However, this is more than 60% less than it was in 2023.

The steady interest of foreigners in the Turkish housing market is associated with unusually high inflation in the country. In mid-2024, the figure was almost 62%. At the same time, the national cost of housing increased by a significant 42% and averaged almost $1,000 per square meter. However, the nominal and real figures differ. Adjusted for overinflation, real estate prices actually decreased by 19% during the first half of 2024.

Dubai (UAE)

Dubai has long been transformed from an oasis in the desert into an active shopping center with skyscrapers, lush parks and luxurious villas. At the same time, the authorities offer foreigners a legal system that is extremely favorable for investments with a wide range of opportunities. And this is one of the reasons why foreigners are actively buying commercial and residential property.

The real estate market of the United Arab Emirates has been actively growing over the past few years. This is facilitated by stable demand, the economic growth of the country and the inextinguishable interest from foreign investors. Traditionally, facilities in Dubai are a very liquid asset with an increasing value every year. According to statistics from open sources, it is known that since the beginning of 2022, the price of this asset has increased by 56%, and sales volume has increased by 2 times.

Investors are most often attracted to apartments and villas in Dubai. The goals are different – for personal residence, for rental purposes or the prospect of further sale.

The price index for residential space in Dubai for the first half of 2024 increased by 20% year-on-year. Adjusted for inflation – by almost 17%. At the same time, the price of villas can be up to 2 times more than in the case of apartments.

The average cost of apartments at the beginning of 2024 was just over $408,000. While the price of the villa can be more than $870,000.

Spain

For foreigners, the main advantage of buying a home in Spain is the price, which is often lower than in other European countries. This is primarily due to the fact that the state is still experiencing the effects of the 2008 economic crisis and the cost of housing here is significantly lower than in the Eurozone as a whole.

From 2020 to 2022, due to the effects of the pandemic and a number of political events, investors did not actively show interest in Spanish real estate. But according to statistics for 2023, they returned to the TOP 10 again, despite the fact that the dynamics of consumer activity is negative.

It is important to note that the Spanish market is ready to offer many advantages – from favorable purchase conditions to an affordable Golden Visa program.

Serbia

The Republic is among the countries offering non-residents an attractive real estate market. Subject to certain legal and factual conditions, non-residents can buy, sell, and lease residential and commercial properties. The most attractive cities are Belgrade, Novi Sad and Nis. They are attracted by their cultural and economic significance, high rental yields and the potential for growth of invested capital.

The interest of foreigners in Serbian real estate is traditionally at a high level, since the availability of housing becomes the basis for obtaining a residence permit. At the same time, the government of the country does not impose restrictions on the minimum threshold for the cost of the object.

According to the report of the Republican Geodetic Administration, the cost of housing in Serbia has increased slightly, but the overall market is falling as of the first half of 2024. The main reason for the stagnation was high interest rates on loans and the inflation rate.

The cost of objects in the primary and secondary markets are different. Thus, the price per m2 in a new building increased by 5.09% (cost about 3,000 euros), and in the old fund by 4.52% (2,300 euros).

Italy

Investors, despite the deteriorating political relations between the countries, are primarily attracted to a comfortable tax climate in Italy. Therefore, the Italian market remains one of the priorities. The country attracts millions of tourists every year, which opens up opportunities for profitable rental. At the same time, the market offers a wide range of objects – from houses of historical significance to modern apartments. The most popular cities are Palermo, Florence, Genoa, Catania and Turin.

According to the research bureau Tecnocasa, 2023 ended for Italy with a reduction in the number of transactions due to rising interest rates and inflation. In 2024, experts predicted a stabilization of the situation, but an increase in the average price per square meter, which is confirmed in practice. At the same time, a distinctive feature was the decrease in interest in obtaining a residence permit. Now the investment attractiveness of the purchase has come out on top.

Georgia

The Georgian economy is largely connected with tourism, and this, in turn, allows for high profits from the accommodation of travelers. In recent years, the Republic has received many IT relocators from Russia, Belarus and Ukraine. This has led to a sharp rise in real estate and rental prices.

It is important to note that, given the active economic growth and the period of political instability, Georgia remains one of the most popular destinations for buying real estate. This is due to affordable prices and high potential growth in the cost of facilities.

The average rental yield is 8.6%. This allows you to recoup your investments in a relatively short time. It is important to note that this rate of return is higher than the global average of 6.1%, and the constantly growing demand allows you to quickly fill vacant facilities.

In general, the Georgian market is supported by the country's strong economic growth and gradually decreasing interest rates. However, against the background of stabilizing, but still significant demand, prices continue to rise. In 2022, the price index increased by 14%, and in 2023 – by almost 13%. In the first half of this year, the values continued to grow and by the end of the year, adjusted for inflation, values of at least 12.5% are projected.

Germany

The German market remains one of the most attractive destinations. Even with high prices, investors see sense in buying a commercial or residential property, since it is a safe long-term investment.

It is important to note that in Germany there are no restrictions on the purchase of real estate by foreigners. For non-residents, a slightly larger deposit may be required, but the costs are offset by a stable rental market, fixed interest rates and tax benefits. However, expats who have bought, for example, housing cannot apply for investment citizenship. To do this, you need to meet the requirements of other residency programs.

In 2024, the average cost of living space is about 4,741 €/m2. Private houses cost an average of 3,139 €/m2.

According to the Paribas Real Estate agency, 35% of all transactions were made by foreigners in the first half of 2024. And this figure is the lowest since 2013. The decline is a continuation of a protracted 70% drop in sales volumes across the country. For many years, low interest rates, cheap energy from Russia and a strong economy have created high demand in the sector. Since 2023, the situation has been deteriorating dramatically. Leading experts predict that difficulties will continue until foreign investors return to the domestic market.

USA

The United States is traditionally the world's largest real estate market, with an annual turnover of more than $2.3 trillion. The stability of the political and economic environment makes the United States an attractive place for investors seeking security. This is also facilitated by the country's legal framework and the protection of property rights. In addition, it is worth highlighting the receipt of certain tax advantages – deductions for interest payments and property taxes.

Despite the fact that demand for U.S. real estate remains at a high level, the United States market also began to experience difficulties in 2024. According to the National Association of Realtors of the USA, the volume of investments in residential and commercial premises has already decreased by 21% in the current period. In quantitative terms, these are the lowest figures since 2009.

According to experts, the problem is related to high prices (the average cost is more than $780,000), limited supply in the housing market, as well as the high exchange rate of the dollar against world currencies. Forecasts agree on one thing – the volume of transactions by foreigners in the coming years will decrease against the background of economic and political decisions of the country's leadership.

Kazakhstan

The republic has become one of those "spare airfields" that thousands of Russians used in 2022-2023. According to article 9 of the Law "On the Legal Status of Foreigners", foreign citizens with permanent resident status can own housing. Civil status and numerous investment opportunities have become factors that consistently attract investors to the Kazakh real estate market.

Despite the fact that Kazakhstan offers limited investment opportunities in comparison with more developed Asian markets, the economic strategies and location of the Republic play an important role in attracting capital.

The dynamics of price changes varies depending on the region of the country, but, in general, the statistics look like this. According to the Bureau of National Statistics of Kazakhstan, in the first half of 2024, the cost of new housing increased by 2.2%, and secondary housing by 1%. The cost of renting a comfortable apartment has increased by more than 5%.

The volume of real estate transactions increased by more than 10% in 2024. The largest number of purchased objects was recorded in the western part of the country, and the minimum – in the Kyzylorda region.

Thailand

For foreign investors, Thailand remains an attractive place to buy real estate in order to generate rental income or as a personal home. The accelerated urbanization of cities has caused a surge in demand for commercial and residential facilities.

In general, interest increased by more than 60% in the first half of 2024. And compared to 2022, the overall attractiveness of the market has increased by more than 230%. Among other advantages of investing in the Thai market, it is worth highlighting the change in the policy of the Thai government, which allowed foreigners to own property rights.

Experts expect that the measures taken to stimulate the real estate market will have a positive impact on the volume of transactions. This is especially important for the country against the background of a decrease in the activity of its own citizens and the stagnation of the economy.

In the second quarter of 2024, the price index increased by 2.6%. The highest price increases were recorded for townhouses. Industry experts predict that the cost of facilities will continue to increase (especially for new projects) due to rising prices of building materials, labor costs, high interest rates and land prices.

Market dynamics

In 2024, the trend of interest in foreign real estate continued to adjust. Thus, investors have changed the vector of investment injections, sending them primarily to Asian countries. This can be seen in the dynamics of the rise in the volume of transactions in Thailand. A year earlier, the United Arab Emirates topped the ranking.

Simultaneously with the Thai market, Bali is beginning to play a significant role. In 2023 Indonesia was one of the TOP 10 popular destinations. According to experts, the trend will continue in the current and subsequent years and the volume of transactions in the Bali market will only grow.

According to Tranio, an international real estate broker, the interest of foreign investors in the European market will continue. The leaders traditionally include Greece, Spain, France and Germany. First of all, the investment perspective is supported by the possibility of obtaining a residence permit in an EU country. Experts agree that the total demand for facilities will continue to grow, but new countries, such as Hungary, will come to the fore.