Published on June 20th, 2019
Real estate investment can be highly lucrative if one can find the right market. Sometimes, that can mean investing in the foreign markets – believe it or not, there are some highly profitable gems hidden out there in these market.
The emerging markets, in particular, can offer significant investment opportunities – not only with the usual rental income options but also the options for capital appreciation, which can be incredibly high at times. It all depends on finding the right market.
This article covers some of the options that may be considered for such real estate investment – countries where the current real estate dynamics are so aligned as to make the right kind of investment pull in high returns.
Here are some of these countries for 2019:
There are several factors that make the Philippines an attractive investment. The country has a growing economy which generally translates into both a rising value of property and an increasing demand for it. The economic growth may have slowed down in the first quarter of 2019 but it still stands at a high 5.6%.
The rental yield in the Philippines is also among the highest in the region. Currently, the rental yield is estimated at around 6.13%. The rising population coupled with the growth has meant that there is an increasing demand for housing in the country.
This translates into two things: one, that the prices of property will continue rising; and, two, that an increasing number of people will be looking to rent property, resulting in a consistent rise in rents as well.
Fortaleza in Brazil has been a highly popular investment destination among real estate investors over the past couple of years. Brazil has also recently featured in some of the top real estate surveys of overseas real estate investment opportunities including those conducted by Live and Invest Overseas, and the Association of Foreign Investors in Real Estate.
In Brazil too, like the Philippines, the opportunities come in the rental market, and tourism is the major factor contributing towards growth in the sector, hence why Fortaleza is so popular among investors — particularly the coastal strip of Ceara state in Northeast Brazil. There the rental yields have been estimated at around 8%, provided the right opportunities are availed.
While Pakistan may be a surprise addition to the list, for now, it may not remain so for long. The growing cooperation between Pakistan and China has meant that the latter has been pouring money into the country, boosting infrastructure, industry and economy in general.
Particularly Gwadar in Balochistan province which has been the focal point of the relationship between Pakistan and China – and offers the potential to provide incredible capital growth in the medium to long run since both countries have shown the will to develop that region in particular.
It’s just not that region, however. The improved security situation in recent years has meant that the other areas of Pakistan can also be considered for real estate investment. The real estate sector has really low taxes, the real estate prices are low and the currency has significantly weakened in comparison to the dollar in the recent months.
On the other hand, Pakistan has a high, consistently rising housing demand and, by extension, the demand for rentals. The market is also becoming more welcome for overseas investors with an increasing amount of data available online through real estate portals like prop.pk, which means that more and accurate information will be available to potential investors.
4. Dominican Republic
Santo Domingo, the capital of the Dominican Republic offers some fantastic opportunities for real estate investment as well.
Following are some of the factors which make any real estate investment in Santa Domingo a great option. The company has had strong economic growth in recent years. According to World Bank data, the economy of the Dominican Republic experienced an average growth of 5.1% between 2008 and 2018.
Moreover, the country has also been attracting an increasing amount of Foreign Direct Investment. As a result, Lief Simon, the Director of the Overseas Property Alert for Live and Invest Overseas, the Dominican Republic, particularly its capital, is attracting a high number of business travellers and tourists and that is what makes the country so incredibly good for real estate investment.
In 2017 alone the country attracted a total of 6.2 million tourists.
There are several reasons why anyone would want to consider Nicaragua but the most important among them is how incredibly low the prices of property are. Nowadays one can hardly find a tropical destination where the property prices are low.
Nicaragua, because it has still not fallen on the radar of a large number of overseas real estate investors still has low prices of property. However, at the same time, it has great potential for growth in the medium-run.
Nicaragua offers both the potential for capital gains in property as well as a stable rental income if you can choose the right kind of property to rent out as a vacation home. As the number of tourists and visitors to the country rise, not only will the price of your property increase but you will also have a stable rental income.
This is, by no stretch, an exhaustive list of all the countries that can be considered for overseas real estate investment but they are some of the top options where you can begin your search for the profitable world of overseas real estate investment.