In this article, we will be navigating through the 21 best countries to buy real estate according to Reddit. If you wish to skip our detailed analysis, you can move directly to the 5 Best Countries to Buy Real Estate According to Reddit.
Factors Driving Real Estate Investment
The viability of a real estate market depends on numerous factors. First of all, a sound economy is a primary factor that guides real estate investments in respective markets. A growing GDP and financial stability are some of the common indicators of this economic resilience. Since real estate investment is also associated with generating a rental yield, a higher return on investment seems an attractive option that secures the interest of many investors. Similarly, a growing population represents a rising housing as well as rental demand. Real estate market growth can also be driven by government policies that are in favor of foreign investors who are interested in residential or commercial real estate. Another major factor impacting the real estate industry is the interest rate. As interest rates climb, the cost of investment in real estate increases due to which the demand goes down.
Global Real Estate Outlook for 2024
Globally, the real estate sector has been subject to interest rates that have been kept persistently high in an attempt to tame inflation. Following a period of strong monetary tightening, policy rates are expected to be stable in 2024. Hence, a comparatively better macro environment this year will give lucrative opportunities to real estate investors around the world.
The United States is known to have the biggest commercial property market globally. Typically, higher interest rates tend to damage real estate by bringing the prices and demand of commercial property down. Contrary to this, the US has shown different outcomes to rising interest rates. On January 18, the International Monetary Fund reported that real estate prices in the United States remained mostly stable during the rate hikes undertaken by the Federal Reserve. However, the real estate sector remains vulnerable to many issues. Amidst monetary tightening, losses on commercial real estate loans have soared. This has led to almost two-thirds of banks in the US implementing strict standards for lending. A bright prospect in this regard relates to the cooling mortgage rates which have increased the confidence of both buyers and builders who are expecting a rebound in the US real estate market in 2024.
Amidst the recovery of global real estate from the sluggish effects of constant interest rate hikes and inflation, markets in the GCC including UAE are expected to remain resilient in 2024. GCC also known as the Gulf Cooperation Council is a union between Middle Eastern economies that include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Dubai has especially emerged as an attractive center for commercial and residential real estate investment. The demand for affordable housing has trended upwards in Dubai which has offered many real estate developers market opportunities.
Real Estate in Emerging Markets
The United Arab Emirates is all set to continue its strong growth trajectory in 2024. The robust buyer demand and investor confidence have substantially improved the market's scope. Emaar Properties PJSC (DFM:EMAAR), Union Properties PJSC (DFM:UPP), and Damac Properties Dubai Co. PJSC (DFM:DAMAC) are some of the dominant players in the UAE real estate market. Let's take a look at what these firms have been up to.
Emaar Properties PJSC (DFM:EMAAR) is a multinational real estate development company based in the UAE. On February 26, the company reported the expansion in its flagship residential development 'The Oasis by Emaar'. The expansion has raised the development value of The Oasis from AED 34 billion to AED 73 billion with a 108% increase in its land space. The Oasis is one of the largest developments in Dubai and offers resort-style living. The community is situated at a 20-minute drive from downtown Dubai.
Union Properties PJSC (DFM:UPP) is known for its residential and commercial developments in the UAE. MotorCity is a notable Dubai-based development that offers opportunities for residence, business, sports, and leisure. It is located on land spanning almost 38,000,000 square feet and is referred to as a city within a city. MotorCity by Union Properties PJSC (DFM:UPP) is home to UAE’s first fully integrated multipurpose motorsport and entertainment facility 'Dubai Autodrome' which also hosts world-class races.
Damac Properties Dubai Co. PJSC (DFM:DAMAC) delivers residential, commercial, and leisure properties across the Middle East. On February 16, the company reported an addition to its latest luxury lifestyle collection Safa series by the launch of 'The Sapphire' tower. Residents and visitors can easily access the Jumeirah area and Downtown Dubai. Recreation can also be sought at the nearby Safa Park. Some of the amenities in The Sapphire include a 24/7 indoor fitness center and co-working spaces on the rooftop. Through this development, Damac Properties Dubai Co. PJSC (DFM:DAMAC) will be catering to the demand for luxury residential units in Dubai.
Best housing stocks to buy have also been previously covered. Without further ado, let’s move to the 21 best countries to buy real estate according to Reddit.
21 Best Countries to Buy Real Estate According to Reddit
21 Best Countries to Buy Real Estate According to Reddit
Our Methodology:
In order to compile a list of the 21 best countries to buy real estate according to Reddit, we sifted through numerous Reddit threads from credible sources including r/RealEstate, r/realestateinvesting, and r/RealEstateAdvice. Using a consensus approach, we gathered all the countries that had been deemed good for investing in real estate.
The real estate market is multi-faceted and is impacted by several factors. These include economic stability, growth in prices, interest rates, government support, and political stability. However, we focused on two key metrics. The first key metric we have chosen is the year-over-year growth in house prices which is calculated based on the House Price Index and is sourced from the GlobalEconomy. A higher value of this metric indicates a strong growth in property value which deems the market attractive for investment. Higher house prices are also associated with higher consumer confidence and higher demand.
Economic stability and growth are other factors that improve foreign investment and increase demand in the real estate market. To represent the overall economic stability, we considered the real GDP growth rate as our secondary metric. This metric was available on IMF, as of 2023. We have ranked the countries in ascending order of their year-over-year house price growth and used GDP growth as a tie-breaker.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
21 Best Countries to Buy Real Estate According to Reddit
21. Estonia
Year-Over-Year House Prices Growth: 0.34%
Real GDP Growth:-2.3%
Estonia is one of the best countries to buy real estate according to Reddit. This is evident from the 0.34% year-over-year growth in the country’s residential property prices as recorded in the third quarter of 2023.
20. France
Year-Over-Year House Prices Growth: 0.54%
Real GDP Growth:1%
France ranks as another good market for investing in real estate according to Reddit. In Q3 2023, the country recorded 0.54% year-over-year growth in residential property prices. Real GDP growth for France was reported to be 1% in 2023.
19. Malaysia
Year-Over-Year House Prices Growth: 0.61%
Real GDP Growth:4%
The best countries to purchase real estate according to Reddit include Malaysia as well. The year-over-year growth in house prices in Malaysia was recorded at 0.61% in 2023’s third quarter. According to the IMF, the country’s real GDP experienced a growth of 4% in 2023.
18. Mexico
Year-Over-Year House Prices Growth: 0.84%
Real GDP Growth:3.2%
In the third quarter of 2023, Mexico experienced a year-over-year house price growth of 0.84%. Furthermore, the country’s real GDP grew by 3.2% in 2023. Mexico has been mentioned as a good market for buying real estate according to Reddit.
17. Greece
Year-Over-Year House Prices Growth: 0.85%
Real GDP Growth:2.5%
Greece ranks among the best countries for real estate investment according to Reddit. The country recorded a year-over-year house price growth of 0.85% in Q3 2023. According to the IMF, the country’s real GDP recorded a growth of 2.5% in 2023.
16. Austria
Year-Over-Year House Prices Growth: 0.91%
Real GDP Growth:0.1%
The year-over-year growth in house prices in Austria was recorded at 0.91% in the third quarter of 2023 which ranks it among countries suitable for buying real estate according to Redditors. The country’s GDP grew by 0.1% in 2023.
15. United Arab Emirates
Year-Over-Year House Prices Growth: 0.94%
Real GDP Growth:3.4%
In the third quarter of 2023, the year-over-year growth in residential property prices in the UAE was reported to be 0.94%. Hence, the UAE is another suitable market for buying real estate according to Reddit.
14. United Kingdom
Year-Over-Year House Prices Growth: 1.14%
Real GDP Growth:0.5%
The United Kingdom ranks among the 21 best countries to buy real estate as suggested by Reddit. The country recorded 1.14% year-over-year growth in its residential property prices in the third quarter of 2023. The country’s real GDP grew by 0.5% in 2023.
13. Serbia
Year-Over-Year House Prices Growth: 1.83%
Real GDP Growth:2%
Serbia has been referred to as a good market to buy real estate according to Reddit. As of Q3 2023, the year-over-year growth in residential property prices in Serbia was 1.83%. The country witnessed a real GDP growth of 2% in 2023.
12. Croatia
Year-Over-Year House Prices Growth: 2.11%
Real GDP Growth:2.7%
Croatia ranks as one of the countries recommended for real estate investment according to Reddit. According to the IMF, the country’s real GDP grew by 2.7% in 2023. In Q3 2023, the year-over-year house price growth in Croatia was recorded at 2.11%.
11. The United States
Year-Over-Year House Prices Growth: 2.71%
Real GDP Growth:2.1%
The real GDP growth for the United States was recorded at 2.1% in 2023 and its residential property prices grew by 2.71% year-over-year as reported in the third quarter of 2023. The United States has been mentioned as one of the suitable countries to buy real estate according to Reddit.
10. Switzerland
Year-Over-Year House Prices Growth: 2.84%
Real GDP Growth:0.9%
Switzerland ranks among the 21 best countries to buy real estate according to Reddit. According to the IMF, the real GDP of Switzerland grew by 0.9% in 2023. In the third quarter of 2023, the country recorded 2.84% year-over-year growth in its residential property prices
9. Ireland
Year-Over-Year House Prices Growth: 2.94%
Real GDP Growth:2%
Ireland has been commonly recommended by Redditors as a country to invest in real estate. The year-over-year growth in residential property prices in Ireland was recorded at 2.94% in the third quarter of 2023. The real GDP growth for the country was reported to be 2% in 2023.
8. Luxembourg
Year-Over-Year House Prices Growth: 3.96%
Real GDP Growth:-0.4%
The year-over-year growth in residential property prices in Luxembourg was recorded at 3.96% in the third quarter of 2023. Luxembourg ranks among the best countries to buy real estate according to Reddit.
7. Slovenia
Year-Over-Year House Prices Growth: 4.08%
Real GDP Growth:2%
Slovenia ranks as another country deemed suitable for investing in real estate according to Reddit. In Q3 2023, the country recorded a 4.08% year-over-year growth in its house prices. Slovenia also witnessed a growth in its real GDP by 2% in 2023.
6. Portugal
Year-Over-Year House Prices Growth: 4.81%
Real GDP Growth:2.3%
Portugal ranks as one of the best countries to buy real estate according to Reddit. The year-over-year growth in residential property prices in the country was recorded at 4.81% in the third quarter of 2023. The country also recorded a real GDP growth of 2.3% in 2023.
