Investing in Real Estate Abroad: Top Opportunities and Risks for Expats in 2024

For expats living in Europe, investing in real estate can be a great way to create passive income, or even set down roots in places you love to visit. Real estate is often considered one of the safest types of investments since it tends to hold value well and provides stable returns over time. As well you have rental income potential and currency fluctuations protection. This guide looks at some of the top real estate investment destinations abroad for expats in 2024, with specific examples of promising regions and practical tips to help you navigate this investment.

1.Portugal: Lisbon, Porto, and Algarve

Lisbon:

• Apartments in Central Lisbon: €4,500–€8,000 per square meter. A 2-bedroom apartment in popular neighborhoods like Baixa or Chiado might cost around €500,000–€700,000.
• Suburbs: Prices can drop significantly in areas just outside the city center, ranging from €2,000–€4,000 per square meter.

Porto:

• City Center Apartments: Around €3,000–€5,000 per square meter. A 2-bedroom apartment in Porto’s Ribeira district may range from €300,000–€450,000.
• Emerging Neighborhoods: In less central areas, prices can be as low as €1,500–€2,500 per square meter, which means a similar apartment might cost around €200,000–€300,000.

Algarve (e.g., Faro, Albufeira):

• Beachfront Properties: Coastal villas and apartments cost about €3,500–€6,500 per square meter. A 3-bedroom villa might be priced between €500,000 and €1 million.
• Inland Properties: Inland areas are more affordable, with prices ranging from €2,000–€3,500 per square meter.

2.Spain: Barcelona, Madrid, and Costa del Sol

Barcelona:

• City Center Apartments: Prices range from €5,000–€7,500 per square meter in prime neighborhoods like Eixample or Gracia. A 2-bedroom apartment in these areas can cost around €500,000–€700,000.
• Outer Districts: In more residential areas, prices are about €3,000–€4,500 per square meter, making a similar apartment cost between €300,000–€450,000.

Madrid:

• City Center Properties: €4,500–€7,000 per square meter in central areas like Salamanca and Chamberí, with 2-bedroom apartments priced between €450,000–€650,000.
• Affordable Neighborhoods: Further from the city center, you can find properties for €2,500–€4,000 per square meter, so a 2-bedroom apartment might cost around €250,000–€400,000.

Costa del Sol (e.g., Marbella, Málaga):

• Beachfront Apartments and Villas: Prices in Marbella and nearby areas are around €3,500–€6,000 per square meter. A beachfront 3-bedroom villa could cost €800,000–€1.5 million.
• Inland Costa del Sol: Inland, prices drop to about €2,000–€3,000 per square meter, making it possible to find a 3-bedroom villa for around €400,000–€600,000.

3.Thailand: Bangkok, Phuket, and Chiang Mai

Bangkok:

• High-End Condos: Prices are around $5,500–$8,200 USD per square meter. A 2-bedroom condo in the city center could cost around $275,000–$412,000 USD.
• Affordable Condos: In suburban Bangkok, prices can be as low as $1,900–$2,750 USD per square meter, making a 2-bedroom condo cost about $82,000–$137,000 USD.

Phuket:

• Beachfront Villas and Condos: Prices here range from $2,750–$4,100 USD per square meter. A 3-bedroom villa near the beach might cost $330,000–$550,000 USD.
• Inland Properties: Further inland, prices are around $1,650–$2,500 USD per square meter, making it possible to buy a 3-bedroom villa for $165,000–$275,000 USD.

Chiang Mai:

• Central Condos and Houses: Prices range from $1,400–$2,500 USD per square meter. A 2-bedroom condo in the city center may cost around $55,000–$110,000 USD.
• Outskirts of Chiang Mai: Prices drop to about $825–$1,650 USD per square meter, making a similar condo available for $27,500–$55,000 USD.

4.United Arab Emirates (UAE): Dubai, Abu Dhabi, and Sharjah

Dubai:

• Luxury Apartments and Villas: Prices range from $410–$820 USD per square foot. A 2-bedroom luxury apartment in areas like Downtown Dubai or Dubai Marina can cost $550,000–$1.1 million USD.
• Affordable Apartments: In neighborhoods like Jumeirah Village Circle or Dubai Silicon Oasis, prices are around $220–$330 USD per square foot, so a 2-bedroom apartment might cost $245,000–$410,000 USD.

Abu Dhabi:

• Central Areas: Prices in Abu Dhabi are slightly lower than in Dubai, around $330–$680 USD per square foot. A 3-bedroom apartment in Al Reem Island could be priced at $410,000–$820,000 USD.
• Suburbs: Properties in suburban areas are around $220–$330 USD per square foot, with 3-bedroom villas costing around $275,000–$545,000 USD.

Sharjah:

• Apartments and Villas: Sharjah is more affordable, with prices around $165–$245 USD per square foot. A 3-bedroom villa might cost $275,000–$410,000 USD.

5.Turkey: Istanbul, Antalya, and Bodrum

Istanbul:

• City Center Apartments: Prices range from $1,060–$1,770 USD per square meter. A 2-bedroom apartment in prime areas like Beyoglu or Sisli can cost $53,000–$106,000 USD.
• Suburbs: In suburban Istanbul, prices drop to about $530–$880 USD per square meter, so a similar 2-bedroom apartment might cost around $28,000–$53,000 USD.

Antalya:

• Beachfront Properties: Prices are around $710–$1,060 USD per square meter, with 3-bedroom villas near the coast priced around $71,000–$141,000 USD.
• Inland Properties: Inland properties in Antalya can be found for around $355–$530 USD per square meter, which means a 2-bedroom apartment might cost about $18,000–$35,000 USD.

Bodrum:

• Luxury Villas: Prices range from $880–$1,410 USD per square meter. A beachfront villa in Bodrum might cost $141,000–$247,000 USD.
• More Affordable Areas: Further from the coast, prices can drop to $530–$880 USD per square meter, making it possible to find a villa for $35,000–$71,000 USD.

These prices should give you a clear sense of what different real estate markets offer for expats interested in investing abroad in 2024. The value you get can vary widely depending on the location, quality of the property, and market demand, so working with a local agent can help you find properties that match both your budget and investment goals.