If you’re toying with the idea of buying real estate in a foreign country—for instance, a one-euro home in Italy—you’re not alone. According to a survey conducted by Coldwell Banker and reported in Global Luxury 2024, nearly 40 percent of wealthy American respondents said they plan to buy a home in a foreign country within the next year.
Why Americans Are Investing Abroad
The uptick in overseas investment owes to several factors. First, the euro is lower than it has been in many years, and interest rates are lower in Europe than they are in the U.S. “As of June 6, 2024, the European Central Bank cut its main lending rate from 4 percent to 3.75 percent,” Samira Easton, a certified international property specialist at Premier Sotheby’s International Realty, says. (This is a small but significant change when you’re borrowing a large sum.) Easton also points out that anxiety surrounding the upcoming presidential election is causing people to consider moving abroad. Then, of course, there’s the fact that the U.S. is still experiencing a housing shortage and the homes that do wind up on the market here tend to be prohibitively expensive.
The Benefits of Buying in a Foreign Country
Not only is it potentially cheaper to buy real estate abroad than here in the U.S., it can actually bring in additional income and help protect your existing assets. “Investing in emerging markets can offer rapid economic returns and increasing property values,” Easton explains. (In other words, the beach house you buy in Portugal now might be worth double what you paid for it in a couple of years.) And houses located in popular tourist destinations can bring in a steady stream of rental income.
Owning properties in different countries also can diversify your portfolio, making you less vulnerable to crazy economic fluctuations in any one country—and “real estate investments in different currencies can protect against currency devaluations in your home country,” Easton says.
From a lifestyle standpoint, owning a home overseas offers access to new cultures and climates (exotic food, sunny weather!) and gives families a special place to gather for holidays and summer breaks. Who doesn’t want to spend Christmas in Paris or August in Tuscany?
But it’s not just European destinations that are attracting expats. There are several countries around the globe that have cities bursting with cultural opportunities and recreational activities, beach towns with miles of sandy shoreline, and plenty of affordable homes for you to buy right now. Here are seven hot spots that belong on your list.
For more expert real estate advice:
- 5 Places in Italy Where You Can Buy a Home for $1
- In These 10 Areas, Home Prices Are Doubling
- The Best Time to Sell Your House for Maximum Profit
1
Portugal
This coastal European country is the latest trendy travel destination—and is quickly becoming a popular place to buy a second home. It’s cheaper (for now) than many other Western European countries, and major airlines like TAP Portugal and United offer direct flights from the U.S. to Portugal’s beautiful, colorful, and Instagram-worthy capital city of Lisbon. According to Mauricio Umansky, CEO and founder of The Agency, which has real estate offices across the globe, Portugal is attracting overseas buyers with its Golden Visa Program, which gives foreigners who buy real estate the opportunity to gain citizenship. The rental market is strong in Lisbon, Porto (shown here), and the Algarve region, so even if you don’t want to use your house in Portugal (which in addition to its stunning beaches is known for its amazing food and friendly locals) for a few years, it’s still smart to buy now.
Related: The Definitive Design Lover's Guide to Lisbon
2
Spain
Just over the border from Portugal lies another excellent investment opportunity. Spain offers an attractive mix of culturally rich, sophisticated cities and laid-back beach towns, and, like Portugal, it offers a Golden Visa Program. There’s high demand for rental properties in major cities like Barcelona (shown here) and Madrid, which can generate a nice monthly income for owners. Spain had a few years of economic decline, but it’s bouncing back. “In recent years, property prices have gradually increased but are still affordable compared to other markets, making it a great time to buy before prices go up even more,” Umanksy says.
Related: The First House Designed by Spanish Architect Antoni Gaudí Is on Airbnb
3
Turks and Caicos Islands
After years of ski vacations, designer Ainsley Hayes and her family decided to buy a second home in Turks and Caicos. “It has a relaxed island lifestyle but also offers active family activities like kite surfing, fishing, snorkeling, boating, and golf.” Hayes is one of a growing number of Americans and Canadians purchasing second homes on these two stunning Caribbean islands, which are a direct flight from East Coast cities like Boston, New York, Atlanta, Charlotte, and Philadelphia. “Overall, Turks and Caicos offers a combination of natural beauty, tax advantages, tourism appeal, political stability, and infrastructure development that makes it an attractive option for Americans considering a real estate investment in the Caribbean,” Umansky says.
Related: Designer Young Huh Turns a Dated Turks and Caicos Resort into a Tropical Dream
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4
Costa Rica
It’s becoming more and more common for travelers to go on holiday to Costa Rica—and never leave. The country has a warm, sunny climate, a biodiverse landscape (a mix of famous surf beaches and lush rainforests that lend themselves to eco-tourism), and an easygoing vibe that makes you feel like you’re always on vacation even if you’re working a 9-to-5. But what makes it a sound investment is its stable and democratic government and the country’s strong legal framework that protects property rights, which foreign investors find reassuring, Easton says. The country also provides top-notch healthcare and educational services, solid infrastructure (like reliable utilities and internet services), and high rental income potential.
Related: 33 Amazing Treehouses You Can Rent in 2023
5
Mexico
Bordering the U.S., Mexico is just a short flight (or drive, if you happen to live in Texas or California) from many American cities. “Mexico provides affordable real estate options, particularly in resort areas like Cancun, Puerto Vallarta, and Tulum,” Umansky says. (The latter is shown here.) “These regions attract tourists and expats, ensuring steady rental income.” Mexico is also appealing to retirees, who are enticed by the low cost of living and the warm climate, which allows for recreational activities like boating, fishing, golf, and tennis year-round.
Related: Shea McGee Designs Her First-Ever International Project in Mexico
6
United Arab Emirates
Dubai is halfway around the world, but its tax-free environment (no income tax!) makes second homes here a good real estate investment. “The city’s booming economy and continuous infrastructure development make it a thriving real estate market, and it provides some of the highest rental yields globally, particularly in luxury and high-demand areas,” Easton says. But with everything this glamorous desert city has to offer—shopping, galleries, food tours, cultural sites, and even an indoor ski slope in the Mall of Emirates—you may want to use your house instead of renting it.
Related: 8 Places to Visit in Dubai if You Love Design
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7
Colombia
This South American country is still considered an emerging market, which basically means it’s hot but affordable. While everyone you know is booking trips to Cartagena (shown here), cities like Bogota and Medellin are also popular, and prices in all of these places are lower compared with other Latin American countries. “Increasing tourism and a growing expatriate community is boosting demand for both short-term and long-term rental properties,” Easton says. So pick up a well-priced beach house in Cartagena, spend the winter there soaking up the sun and culture, and then rent it out for a pretty penny the rest of the year.
Related: The 60 Most Beautiful Places in the World to Visit
