It's wise to buy a property abroad if you're looking to make an extended stay or becoming a permanent resident. You can as well make it profitable by letting it to other expats. However, take the time to analyse the dynamic global property market before concluding. Here's an insight into the most affordable places to buy property according to the Global Property Guide.
Europe
Europe's property market remains with a continuous rise in prices over the past few years. Today, Malta provides the most expensive residential properties. Property prices had risen by 12.86% by the end of 2018. The high demand coupled with a shortage of residential real estate property makes the Netherlands virtually unaffordable to small budgets. However, you can still find a range of houses, apartments and luxury villas, mainly in big cities. With a 7.2% economic growth rate for the past year, Ireland also experienced a significant price rise in the same period.
The cheapest properties in Europe are found in Ukraine due to the slowdown of the real estate market. In Kiev, for example, apartments prices fell by 6.2% while house prices decreased by 0.88%. However, slight growth is expected in the coming months. The Swedish property market has also slowed down with prices falling by 3.46% across the country. It's worth noting that this is the most drop since 2012. So if you've always dreamed of getting a second home in Europe, now is the time! A selection of properties ranging from detached houses to newly built apartment complexes is available.
Switzerland also comes among the most affordable countries to buy property in with a 2.61% drop over the past year, followed by Montenegro, Estonia, Finland, Norway and Romania.
Asia
While the property market in Hong Kong, Singapore and Japan remain virtually inaccessible for small budgets with a price increase gone well beyond 10% in the past few years, other countries like China, South Korea and Taiwan, are gradually opening their doors to foreigners looking to buy property there. For example, China recently introduced new regulations coupled with a more flexible monetary policy to attract more real estate investment. Consequently, there was a 4.49% drop in property prices in Shanghai which is one of the most famous cities in China.
South Korea is also quite attractive for those looking to buy a property with a recent 0.72% price drop. Following the 0.15% drop, Taiwan is also expecting a further decline in the coming months. You might think the Philippines and Indonesia to be cheap countries for buying property in, but that's not the case. Significant price rise has been recorded in the past year in major cities. In the Makati Central Business District, for example, the price of three bedroom apartments went up by 5.75%.
Africa and the Middle East
Turkey might not be a favourite expat destination, yet it can be an affordable country to buy property in even if you're not planning to settle there immediately. Letting your property – as many expat owners do – can be profitable in the long run. In 2018, Turkey's inflation rate was at its peak for the past 15 years, that is at 25.24%. The price of residential real estate across the country has fallen by 11.27%.
Egypt and the United Arab Emirates are other attractive real estate markets in the Africa and Middle East. In short, the perpetual political and diplomatic crises and the sharp drop in oil prices had significant consequences on the whole region's economy. The past two years saw rather slow economic growth (1.1% only). Egypt remains the most affordable place to buy property in with a 20.91% price drop nationwide. It's also worth noting that local authorities recently eliminated a series of restrictions on the acquisition of real estate by foreign nationals.
Property prices also dropped in Dubai and Qatar which still have a large market. So if you've always dreamed of buying property in Africa or the Middle East, now is the time!
Americas
The USA remains an affordable destination regarding property, regardless of the city. On the other hand, it seems like the housing boom in Canada has now come to an end. Following a 9.8% drop in the price of detached houses in the past two years, the situation is not likely to stabilise any soon. In October 2018, there was a decline in the number of residential property sales given the low demand since early last year.
Brazil, however, remains one of the most attractive property markets in South America. In Sao Paulo, for example, there was a 2.52% drop in the price of houses during the same period. On the other hand, Chile's property market is growing in spite of the introduction of a property tax in 2016. In Santiago, the price of brand new apartments increased by 4.29% as in Mexico where prices went up by 4.75%.
