Given the current global economic scenario, investing in the stock market and keeping money in the bank are not viable options. However, there is one particular investment that offers significant returns in this high inflationary environment – and that is real estate. Real estate investment provides regular cash flow and excellent returns. But, you need to be smart while investing as every market doesn’t yield the same results. Graana.com, Pakistan’s smartest property portal, provides a list of some of the best countries to invest in real estate below.
List of Top Countries to Invest in Real Estate
If you’re looking to diversify your investment portfolio and save yourself from rising inflation, here’s the list of some of the most stable and secure countries for real estate investment.
Pakistan
The depreciation of the rupee in the last few days has made the Pakistani real estate market an attractive option for foreign and overseas investors. The dwindled foreign exchange reserves and political uncertainty have further increased the pressure on local currency.
Apart from these internal factors, the strengthening of the dollar in the market has also weakened the rupee. Considering all these factors, the Pakistani real estate market offers several benefits to foreign and overseas investors as it would require less capital for them to buy high-end properties.
The prices of properties in all the major cities are increasing and the rental income is much more affordable compared to other countries.
This is why anyone looking to diversify the portfolio in the current global economic scenario should invest in Pakistani real estate as it can yield better returns and helps you earn stable income on a monthly basis.
United Arab Emirates (UAE)
The UAE is another attractive real estate market with several tax benefits for investors.
Besides the low tax rate, the higher rents and profitability make it one of the best places to invest in real estate, especially Dubai.
The purchasing power of people in the UAE is much better, which is driving the real estate market.
The growth of Dubai’s property market is evident compared to last year’s data as more international buyers have invested. This growth in the property market is also due to the established COVID vaccination programme and the issuance of golden visas to investors.
Another reason for investing in the UAE real estate market is stability, which is quite important for investors as they don’t want to invest in a volatile market.
United States of America (USA)
The US is one of the best markets for investment in different sectors, especially real estate. Most investors prefer the US due to favourable tax regulations and massive economic activity in the country, unlike other western countries, where immigration policies and tax regulations are not suitable for investors.
According to the data, the average growth rate of properties in the US is around 5.3%. The mortgage rates are also low With the expected hike in inflation, the rents of the houses will also increase, making rental properties a great investment option.
Australia
It is one of the most lucrative real estate markets in the world, with a high GDP per capita of $52,158 for 2020. According to the data, the country has seen an average of 5% increase in the value of real estate from 2004 to 2021.
Australia’s lower mortgage rate has some effect on the real estate market but the higher GDP per capita is driving a positive impact. Furthermore, strong regulations in the sector make it a stable property market all across the world.
The prices in some cities of Australia are expected to increase so it is advised to contact the local property manager to buy real estate.
Turkey
The tourism industry generates more than $13 billion in revenue for Turkey. In 2021, Istanbul was the most visited city in the world, demonstrating huge potential for investment in the hospitality sector.
Currently, Turkey is experiencing some effects of global commodity supercycle as their central bank is expecting the annual inflation to reach 60.4%. Such a hike in inflation will have an effect on the currency, making it a suitable market for foreign investors.
Foreign investors looking to buy a property in Turkey should opt for vacation rentals as there is an influx of tourists every year. Apart from great returns, investment in real estate can also help you in getting citizenship.
The requirement is that you have to buy a property that is worth around $300,000 to $400,000. After the purchase, an investor can get various benefits, hence, making the country an attractive real estate investment option.
Germany
Germany is considered one of the best economies in the world, with the highest GDP per capita. Hence, the value of the real estate is also higher compared to other European nations. Last year, the value of properties increased by 8.1% compared to the previous year.
It is expected that real estate prices will increase further as, on average, there is an increase of 2.5% in property prices all over the country.
In addition to the stable growth in property prices, the government policies make it one of the best countries to invest in real estate for all foreign and local investors.
Netherlands
Based on the data of the last 25 years, the real estate market has seen a growth of over 4.6%, which is better compared to most nations. The mortgage rates in the country are low as well.
The strong average growth, coupled with the stable political and economic condition in the country, adds to the strong investment potential of real estate.
In the current scenario, it is wise to invest in tangible assets like real estate as it helps in diversifying an investment portfolio and hedge against rising inflation. However, you should only invest where there is high growth potential in the real estate market.
To know more about real estate investment, visit Graana blog.
