In this article we will take a look at the 20 best countries to invest in real estate in 2021. You can skip our detailed analysis of the real estate industry’s outlook for 2021, and go directly to 5 Best Countries to Invest in Real Estate in 2021.
Real estate business happens to be one of the oldest and most lucrative businesses in the world. Prior to globalization, people invested in real estate in their own localities but as the world has become more globalized and connected, real estate investors effectively have access to nearly the entire world for investment.
The United States claims the number 3 spot for most received Foreign Direct Investment (FDI) with the share of real estate investment being 10% of total foreign investment in the US back in 2019 according to the latest report released by US Bureau of Economic Analysis with most properties bought in Florida. However, it's a historical fact that developed economies like the US are largely already urbanized and have slower GDP growth rates and while an investment in real estate is likely to give returns in these countries due to predictability and stability, those gains are usually marginal. This brings us to promising emerging economies like China, whose GDP growth rate was appreciated by the World Bank which noted that it had the “fastest sustained expansion”. The country also has a huge population and workforce, and rising urbanization and annual income. Emerging economies are lucrative for real estate but the predictability factor isn’t as refined as in the developed economies.
Investment in real estate at a global level has also never been easier before. Many companies like Brookfield Asset Management Inc (NYSE: BAM), American Tower Corp (NYSE: AMT), Prologis Inc (NYSE: PLD), AvalonBay Communities (NYSE: AVB), Digital Realty Trust, Inc. (NYSE: DLR), D R Horton Inc (NYSE: DHI) and Simon Property Group Inc (NYSE: SPG) are involved in providing services related to real estate investment. There are many secondary indicators in countries that are attractive for real estate investment, but the key indicators include social and political environment’s stability, legal framework, level of economic activity, degree and nature of government regulations, robustness of its capital market and lastly, the level of real estate investment opportunities. However, these indicators are not quantifiable and this is where the secondary indicators come in, which can be viewed as subsets for the primary indicators. Any country with healthy indicators is a good place to invest your capital in. However, you may only find a very few countries that meet all the criteria.
Photo by Ronnie George on Unsplash
Our Methodology
For our list, we are going with average annual growth rate in real estate as the key metric for countries while considering other metrics as important peripherals. We used housing growth data from macroeconomic data platform CEIC.
With this context and industry outlook in mind, let’s start our list of the 20 best countries to invest in real estate in 2021.
20. Poland
Poland is an Eastern European country. The country has an average housing prices growth rate of 2.3% based on data from the year 2007 to 2021. Poland is an emerging market with a lot of potential for growth. The rule of law in the country is improving. foreign investment has also been increasing with a 26% increase from the previous decade. All these factors come together to make Poland an attractive market for real estate profits. The country ranks 20th in our list of the best countries to invest in real estate in 2021.
19. Germany
At number 19 is Germany with a GDP per capita of $45,733 in the year 2020. High GDP per capita is often correlated with increased real estate value. The country saw an 8.1% increase in real estate value in 2020-21 compared to the previous fiscal year. The historical long term growth rate is also pretty stable at 2.5%.
Overall, the German real estate market is stable due to reasonable policies, legal frameworks and rule of law. The European Systemic Risk Board predicts soaring real estate value in the coming years. Much of it has to do with low interest real estate rates in the country which drive the demand up.
18. Denmark
Denmark makes it at the number 18 with a 11.7% increase in house price rates in 2021 compared to the previous fiscal year. The 13 year average for real estate value increase for Denmark stands at 2.8%. As of 2021, there’s no interest on loans for real estate in the country which is what has likely driven the demand higher for housing. The country is also politically and financially stable with robust legal and political institutions.
As the economy begins to recover all over the world, real estate stocks like Brookfield Asset Management Inc (NYSE: BAM), American Tower Corp (NYSE: AMT), AvalonBay Communities (NYSE: AVB), Digital Realty Trust, Inc. (NYSE: DLR), Prologis Inc (NYSE: PLD), D R Horton Inc (NYSE: DHI) and Simon Property Group Inc (NYSE: SPG) are back into the limelight.
17. Russia
Russia has an average real estate growth rate of 4.4% based on 15 years of data. The country is an emerging economy with huge potential for growth. There are also less bureaucratic hurdles because of friendly real estate legislation in terms of investing in real estate from outside the country. The country ranks 17th in our list of the best countries to invest in real estate in 2021.
16. United Kingdom
The United Kingdom grabs a spot among our list for being one of the hottest markets for real estate. The UK has an average real estate growth rate of 4.4% calculated from data available from the year 1992 to 2021. The Bank of England has set the base rate at 0.1% for mortgages around the country which is pretty low. Low mortgages combined with a high annual income and strong legal, political and financial institutions are promising for real estate investment in the country. The country ranks 16th in our list of the best countries to invest in real estate in 2021.
Canada is one of the advanced economies that presents great real estate investment opportunities. Significant land in the country is available for very cheap prices. Towns like Mundare, Alberta and Pipestone, Manitoba have commercial lands and plots selling for not more than $10. However, conditions include building up a property on land, usually within one year of the land purchase.
The rationale is to induce development and growth in different remote towns in the country. The average growth rate for house prices in the country is at 1.8% but given that most land sells for pennies, it's a bargain. The country also has robust legal and political institutions and a high annual household income. The country ranks 15th in our list of the best countries to invest in real estate in 2021.
14. Austria
Austria is another lucrative market for real estate. The country has an average house price growth rate of 4.2% based on data from 1987 to 2021. The average mortgage rate in the country fell to 1.28%. Austria is a high income country with very strong socio political and legal institutions, ensuring a smooth functioning market and society. The country ranks 14th in our list of the best countries to invest in real estate in 2021.
Another Eastern European nation to make it to the list is Slovakia. The country has an average annual real estate growth rate of 4.8% based on 17 years of data including the year 2021. It's an emerging economy with a lot of prospects for growth in virtually all sectors. The country is also gaining ground on strengthening its legal and political institutions for a smooth economic growth.
12. Netherlands
The Netherlands is another great country to invest in real estate. The country’s average house prices growth rate stands at 4.6% based on data from the year 1996 to 2021. The Netherlands’ legal, social and political institutions are also very strong and market friendly.
Mortgage rates in the country are low which means higher demand in the real estate industry which translates to higher returns on investment in this sector. The country ranks 12th in our list of the best countries to invest in real estate in 2021.
Australia is another lucrative free market with a high GDP per capita of $52,158 for 2020. The country has sustained a healthy yearly average of 5% increase in real estate value from the year 2004 to 2021.
As far as the demand for housing is concerned, Australia’s mortgage rate is slightly below average at 3.93% but high GDP per capita makes up for more than that to drive the demand for real estate high. The country’s strong legal and political institutions also ensure that the market is stable and predictable. The country ranks 11th in our list of the best countries to invest in real estate in 2021.
As the economy begins to recover all over the world, real estate stocks like Brookfield Asset Management Inc (NYSE: BAM), American Tower Corp (NYSE: AMT), AvalonBay Communities (NYSE: AVB), Digital Realty Trust, Inc. (NYSE: DLR), Prologis Inc (NYSE: PLD), D R Horton Inc (NYSE: DHI) and Simon Property Group Inc (NYSE: SPG) are back into the limelight.
10. Luxembourg
Luxembourg is an European country characterized mostly by its rural life and nature parks. The country has an average annual real estate growth rate of 5.2% based on data from 2008 to 2020. The country has decent legal, political and social institutions to discourage market volatility. The country ranks 10th in our list of the best countries to invest in real estate in 2021.
9. Lithuania
Lithuania is a country located in Europe’s Baltic region. It is a very healthy emerging economy with promising prospects for financial investment in the country.
Data from 2007 to 2021 puts Lithuania’s increase in real estate value at 5.6%. The country has an average mortgage rate of 3% which is less than impressive but its GDP per Capita is growing at an average annual rate of 10.43% which should make up for the unimpressive mortgage rates to drive real estate demand.
New Zealand is a small country neighboring Australia. The country has an average annual real estate of growth rate that stands at 5.8%. The country is an advanced economy with very strong social, legal, financial and political institutions to encourage market stability. The country ranks 8th in our list of the best countries to invest in real estate in 2021.
7. Peru
Peru is a country located in South America. The country is a very healthy emerging economy which was categorized as an upper middle income economy by the World Bank. Based on data from 12 years up till 2020, Peru has an average real estate growth rate of 9.6%.
Although the average mortgage rate in the country is incredibly high, at 10.8%, there are a lot of other factors that make up for a healthy average growth rate that is mentioned above, including a high average annual income of around $45000 and affordable cost of living. Peru is also making headways in strengthening rule of law and reinforcing institutions.
As the economy begins to recover all over the world, real estate stocks like Brookfield Asset Management Inc (NYSE: BAM), American Tower Corp (NYSE: AMT), AvalonBay Communities (NYSE: AVB), Digital Realty Trust, Inc. (NYSE: DLR), Prologis Inc (NYSE: PLD), D R Horton Inc (NYSE: DHI) and Simon Property Group Inc (NYSE: SPG) are back into the limelight.
6. United States
The US is one of the world’s most lucrative markets for investment in a lot of different sectors. A lot of the world's capital is invested in the US. As mentioned earlier, the country is positioned 3rd for the most received foreign direct investment in the world. One of the reasons has to do with the fact that the US is a country with one of the most market and tax friendly institutions in the world.
Based on data from 1992 to 2021, the average growth rate in the US for house prices stands at 5.3%. Mortgage rates in the US are not very high or very low. Unlike most other western nations, the US has one of the biggest populations in the world with immigration policies ensuring a sustained rate despite low fertility prevailing in the developed world.
A huge population combined with tremendous economic activity, immigration, GDP growth and innovation, almost all sectors in the country are likely to grow, including especially, the real estate. The country also has one of the strongest social, political, financial and legal frameworks in the world ensuring a smooth pace for economic activity.
As the economy begins to recover in the US, real estate stocks like Brookfield Asset Management Inc (NYSE: BAM), American Tower Corp (NYSE: AMT), Prologis Inc (NYSE: PLD), AvalonBay Communities (NYSE: AVB), Digital Realty Trust, Inc. (NYSE: DLR), D R Horton Inc (NYSE: DHI) and Simon Property Group Inc (NYSE: SPG) are back into the limelight. Click to continue reading and see the 5 Best Countries to Invest in Real Estate in 2021. Suggested articles:
Switzerland is one of the best countries to invest in. It has one of the lowest federal corporate tax rates in the world, at 8.5%, allowing businesses to save a significant amount of money on their profits. Switzerland's innovation performance is 142.4% of the EU average.
Switzerland is one of the best countries to invest in. It has one of the lowest federal corporate tax rates in the world, at 8.5%, allowing businesses to save a significant amount of money on their profits. Switzerland's innovation performance is 142.4% of the EU average.
China is home to more of the world real estate market assets (by value) than any other country at $42.7tn or 21 per cent of global real estate value, just ahead of the US at $42.1tn.
The United States is widely considered the best country to invest in. And for good reasons. I mean, only a few countries can compete with its robust economy and business-friendly environments. With a GDP of $21.4 trillion and a population of over 330 million, the United States is the world's largest economy.
As long as you target the right neighborhood and market, investment property in France can certainly be a good investment! Aside from the fact that you'll live in one of the dreamiest countries in Europe, you can also earn a good source of income.
Portugal is the easiest European country to buy property in. Those who wish to purchase property in Europe can purchase commercial property under Portugal's Golden Visa scheme.
Read More About SingaporeSingapore's economic freedom score is 83.9, making its economy the world's freest in the 2023 Index. Its score is about the same as last year.
The U.S. direct investment abroad position was largest in the United Kingdom ($1.0 trillion), followed by the Netherlands ($885.3 billion) and Luxembourg ($715.6 billion). Ireland ($556.6 billion) and Canada ($406.4 billion) rounded out the top five.
Vanuatu. Vanuatu, an island chain in the South-Western Pacific Ocean, has the cheapest citizenship by investment program in the world, requiring an investment of just $130,000 into its government's Vanuatu Development Support Program.
France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.
Whether you are looking for a second home, retirement property, or investment opportunity, the top five countries to consider are Spain, Portugal, France, Italy, and Germany.
Once you have bought your dream home in France If you would like to relocate to France or visit for longer than 90 days you will require a visa, which is easy to obtain once you are the owner of a French property. You may wish to apply for a Long stay visa valid for residence (VLS-TS).
The Rust Belt region has long felt the effects of a dwindling U.S. manufacturing economy, and the tough times continue in 2023. Cities in Pennsylvania, West Virginia, Illinois, Indiana, Michigan, and even portions of Ohio (Mansfield, Toledo, and Cleveland) have made industry worst lists regarding housing market health.
Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.
Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate. There are several reasons for this, but in today's article, we'll share seven reasons why millionaires invest in real estate.
Some American real estate investors prefer to keep their portfolio local, but you can also earn money as a landlord if buy rental property abroad. The three best countries to buy rental property outside the US are the Philippines, UAE, and Costa Rica.
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
So, the safest countries in the world, in order of ranking, are the Netherlands, Denmark, Iceland, Australia, Norway, Canada, Germany, Sweden, Switzerland, New Zealand, Spain, Ireland, the United Arab Emirates, the United Kingdom, and Belgium.
International stocks can give a lift to your stock portfolio when U.S. stocks are stuck in the mud. Over the long term, this should smooth out volatility in your stock market returns, investing experts say.
Most of our experts agree that one of the safest places to keep your money is in a savings account insured by the Federal Deposit Insurance Corporation (FDIC). “High-yield savings accounts are an excellent option for those looking to keep their retirement savings safe.
There is no quick way to make money or get rich in real estate, but you can grow wealth gradually and consistently by investing correctly. You are probably aware that there are numerous ways to accumulate wealth, but real estate is one of the most effective.
Residential real estate is unlikely to offer investors a higher return than a well-diversified portfolio of stocks, bonds, and alternative investments. Real estate's status as an illiquid bulk holding limits investor flexibility, and high transaction costs make a long investment horizon necessary.
In 2020, Hong Kong had the most expensive residential property market worldwide, with an average property price of 1.25 million U.S. dollars. The government of Hong Kong provide public housing for lower-income residents and almost 45 percent of the Hong Kong population lived in public permanent housing in 2018.
Is property cheaper in Spain or Portugal? Property in Portugal is far cheaper than in Spain, and with attractive rental yields in Lisbon and the Algarve, you can understand why Portugal is such a popular choice for investors.
In Europe, countries that give residence permits easily are Portugal, Cyprus, Greece, Montenegro and Malta. You can easily obtain residency in the Americas in Antigua and Barbuda, Mexico, Belize, and Nicaragua. Asian countries whose residence permits are easy to get are Cambodia, Malaysia, and Thailand.
After Hong Kong, New Zealand and Australia were the least affordable countries overall in the study which looked at the U.S., Canada, the UK, Hong Kong, Singapore, Australia, New Zealand and Ireland. This chart shows the places where it's hardest to afford a home (2023).
1. Sweden. Sweden is the top country in 2022 best quality of life rankings. The country stands out in the ranking of quality of life for health systems and well-developed public education, security, economic stability, and politics.
It was established on May 17, 1792, and consists of 2,400 listed companies. It is the world's largest stock exchange and has a market capitalization of US$ 22.77 trillion as of December 2022.
The study revealed that Singapore ranks highest as the country most interested in stocks and trading. With a total search score of 555 out of a possible 700, Singapore topped the list for its population having the highest search levels for the phrases 'stocks', 'buy stocks', and 'interest rate' worldwide.
In a study of USDA reports, Pew found the foreign country that owns the most U.S. land is not China or Russia, but rather, our neighbors north: Canada. Investors from the Great White North, according to the USDA, own about 12.8 million acres of U.S. land, most of it forest land.
Austin, Texas-based Keller Williams, the world's largest real estate franchise by agent count, has more than 1,100 offices and 191,000 agents. The franchise is also No. 1 in units and sales volume in the United States.
1. The Family Of Queen Elizabeth II Of Great Britain. Although recently deceased, the Queen's royal family will inherit the leadership, which makes them the technical owners of the country. The total size of the British Commonwealth is an astounding 6.75 Billion acres.
Istana Nurul Iman Palace, the official residence of the Sultan of Brunei, Hassanal Bolkiah, is the largest house in the world, spread over 2.15 million square feet.
Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate. There are several reasons for this, but in today's article, we'll share seven reasons why millionaires invest in real estate.
With its tax-free environment, booming economy, strong tourism industry, competitive prices, and world-class developers, Dubai provides a safe, stable, and lucrative investment opportunity for both local and foreign investors.
Commercial real estate is known to yield higher returns than residential real estate. If you can afford to manage a commercial space, it can prove lucrative over time, depending on your area.
Artis Real Estate Investment Trust (ARY. UN) is Canada's largest diversified REIT. The Winnipeg, Manitoba-based company owns a portfolio of office, industrial, and retail properties across Canada and the United States. In September 2021, the REIT owned 171 commercial properties.
40% of an average millionaire's assets consist of real estate. That's partly because real estate can be a great investment and partly because US property values are very high. Many millionaires have a significant percentage of their wealth tied up in their primary residence.
Leading European real estate investment managers in Europe 2021, by AUM. The top ten real estate management companies held about 729 billion U.S. dollars' worth of European assets under management as of December 2021. Swiss Life AM, who lead in Europe, accounted for nearly 127 billion U.S. dollars in AUM.
The largest class of landowners are the provincial governments, who hold all unclaimed land in their jurisdiction. Over 90% of the sprawling boreal forest of Canada is provincial Crown land.
About two in three Canadians lived in an owner-occupied home in 2022. Since 2017, the home ownership rate in Canada has fluctuated and in 2019, it peaked at approximately 68.6 percent. In 2022, this figure was slightly lower, at 66.5 percent.
The Principality of Monaco is the undisputed leader in the global real estate market. The value of housing is due to the combination of a tiny area with a high population density. A large number of multimillionaires and titled persons live here.
Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.