How to choose the best direction for investing in foreign real estate?

Investing in foreignreal estate

Investing in foreignreal estate is becoming an increasingly relevant and promising method not only for preserving but also for growing capital. However, many are starting to think about how to choose the right country for their investments.

In this article, together with Ekaterina Kotlyarova, an expert in real estate and the director of the agency "VIP Realty Club," we will analyze six countries that are of interest to investors from non-European Union countries and explore why these regions are currently the most suitable for investment.

Ekaterina Kotlyarova is a highly qualified specialist who manages a community of Russian-speaking experts in more than eighteen countries around the world.

Let's consider the following countries:

• Georgia
• Northern Cyprus
• Thailand
• Indonesia (Bali Island)
• United Arab Emirates
• Turkey

Georgia

As of today, Georgia occupies one of the most advantageous positions for real estate investment. Investors are particularly interested in cities like Tbilisi and Batumi. The main reasons contributing to the growing interest in Georgia are as follows:

• Impressive growth of the real estate market:In this country, there is an annual growth of 30% to 50%.
• Low entry threshold:In Batumi, you can start with just $30,000, making investments accessible to a wide audience.
• Quick registration of ownership rights:Operations in the Ministry of Justice take just one day.
• The lack of a need to verify the sources of funds:There is no need to provide documentary evidence of the sources of funds used for the purchase.
• Absence of property tax:An important advantage is also the absence of property taxes, which significantly increases the attractiveness of investments.
• Acceptable rental yield:The guaranteed rental yield is approximately 5%, which makes it attractive for long-term investments.

Those purchasing real estate for over $100,000 have the opportunity to obtain a residence permit. Investors can also take advantage of visa-free entry and the right to stay in the country for almost a whole year, which creates additional opportunities for effective asset management.

Among the potential risks, it is important to note the possibility of a slowdown in the growth rate of real estate prices. Apartments in the capital, Tbilisi, have significantly higher prices compared to Batumi, even though they may be offered without interior finishing. Price categories depend on the level of development and location.

The rise in immigration and the rapid development of Tbilisi's economy are leading to an increase in rental rates. As a result, rental yields exceed 10%, which is extremely profitable for property owners. Additionally, it is important to note that in capitals like Tbilisi, the demand for real estate always remains high, providing additional investment opportunities.

Attractiveness of Georgia

Georgia is becoming an increasingly desirable place for people looking to relocate, earn money, or study. It's worth noting that the rise in housing prices is already being felt here, and this trend doesn't seem to be stopping anytime soon.

The country is creating numerous favorable conditions for investment, and rental income from real estate is reaching record levels, attracting the attention of many.

Northern Cyprus as an alternative

Northern Cyprus stands out as another interesting alternative for those looking for a new place to live or do business. The seasonal influx of tourists lasts for about six to seven months a year, making the region attractive for vacationers.

It is important to remember that at the moment, visa-free entry is only allowed for90 dayswhat distinguishes it from Georgia.

Factors attracting real estate buyers in Northern Cyprus

• The option for interest-free installment payments for up to eight years.
• Choice of various payment methods: crowdfunding, cryptocurrency, bank transfer, or cash.
• The absence of the need to provide documents confirming financial sources.

By purchasing real estate, families can obtain a temporary residence permit for one year, provided that the initial payment is at least30%from the cost of the property. Moreover, the purchased real estate can be rented out, including all necessary services such as repairs and furnishing.

Prospects and risks

The development of international education and the opportunity to start a business make Northern Cyprus attractive for massive investments and long-term plans. In recent months, housing prices here have noticeably increased, with the minimum cost starting from$96,000Clients offer a guaranteed rental income at the level of8%.

However, as in any field, there are certain risks. The uncertain status of an unrecognized state may raise doubts among some investors, while others see this situation as an opportunity to increase their investments. Experts point out that about half of the transactions in Northern Cyprus remain unofficially registered, which raises questions about the real situation in the market and the statistical data.

Investments in Thailand

As for Thailand, this country attracts more25-30 millionEvery year, tourists flock to these areas, making them popular investment destinations. Foreigners are particularly interested in regions like Phuket and Pattaya. Phuket is known for its vibrant investment climate, while Pattaya shows a rise in housing prices, which also attracts potential buyers.

Legislative features of purchasing real estate in Southeast Asia

It is important to consider certain nuances of the legislation when purchasing real estate in Southeast Asia, particularly the variety of ownership forms. Investors can choose between full ownership (freehold) and long-term rental for a period of up to 90 years (leasehold).

There are many reasons why more and more people are interested in buying property in Thailand. This country is known for its friendly attitude towards foreign investors and offers convenient financial services that make managing investments easier.

Moreover, receiving a stable income throughout the year is one of the significant advantages of living in this country. Typically, apartments in Thailand offer ready-made design solutions, which greatly saves time and effort for future owners.

Conclusion

Thus, Georgia, Northern Cyprus, and Thailand present interesting opportunities for investment in the real estate market. However, each of these countries has its unique characteristics and potential risks that need to be considered before making an investment decision.

Advantages of buying real estate

Currently, one of the main advantages of purchasing real estate is the low cost of its registration. The rental yield ranges from 6-8%, and if you invest during the construction phase, this figure can reach up to 30%.

Visa-free entry for citizens of a number of countries

From November 1, 2023, to April 30, 2024, residents of Russia, Belarus, and several other countries can travel visa-free for up to 90 days. To obtain a long-term visa equivalent to a residence permit, it is necessary to invest at least 300,000 US dollars in real estate.

Housing prices in Thailand

• In the housing market in Pattaya, prices start at 50,000 dollars.
• In Phuket, the minimum cost of real estate is 120 thousand dollars.

Investment risks can be significantly reduced by choosing the right location and a reliable developer. It is important to note that in Pattaya, real estate can only be rented out for long-term leases or through a management company.

Bangkok and Bali

When it comes to Bangkok, purchasing real estate requires a careful approach and a deep understanding of local conditions. Bali, known for its picturesque nature and immense popularity among tourists, also offers good investment opportunities. The tourist season on this island lasts all year round, which is particularly attractive for investments.

Investments in Bali

Indonesia, specifically the island of Bali, is a relatively new investment destination with high growth potential. This is due to the limited area available for construction. The tourist zones in Bali are almost fully occupied, which ensures a constant demand for rental properties and consistently high returns.

• The limited availability of land resources contributes to a sustainable increase in real estate prices, which is around 15-20% per year.
• Net rental income can fluctuate between 11% and 15% per year.

Just like in Thailand, in Bali, investors can choose between two forms of ownership:freeholdandleaseholdAll residential properties on the island are offered fully furnished.

Visa requirements for foreigners

Foreign citizens can obtain a visa on arrival, which costs 35 USD. This visa is valid for 30 days, with the possibility of extending it for another month. Additionally, there is an option to obtain a residence permit for up to 5 years. Property prices in Bali start at 130,000 USD, and the guaranteed return is 10%.

The real estate market and its features

However, it is important to remember that the market is still young, and not all developers can demonstrate good quality in their services and construction.

Investment in UAEreal estate: Attractive prospects

Let's take a closer look at the reasons why investing in real estate in the United Arab Emirates (UAE) is becoming increasingly attractive for potential investors. First of all, it is worth noting that a significant amount of income in this country is not subject to taxation, which creates favorable conditions for business and contributes to the growth of financial inflows.

The role of government institutions

Government institutions, such as the Dubai Land Department and the Real Estate Regulatory Agency, play a key role in protecting the interests of investors by ensuring the legitimacy of transactions and a high level of market reliability.

Visa programs for investors

Additionally, one of the significant advantages for investors is the possibility of obtaining a residence visa in the UAE for up to 10 years when purchasing real estate worth from205,000 dollarsIt is possible to obtain a resident visa for two years with the option to extend. This visa also allows for residency to be granted to family members through a sponsorship program. If the investments amount to...545,000 dollarsThis means the possibility of obtaining a ten-year visa, which opens up opportunities for sponsorship for domestic workers and skilled personnel.

The process of buying real estate

It is also important to note that the process of purchasing real estate in the UAE can be carried out even while being outside the country. Investors can choose various methods of transferring funds to complete the transaction. Many developers offer convenient payment plans, including installments for up to84 monthsThis significantly simplifies the purchasing process and allows the use of rental income to pay off loans.

Additional opportunities in Ras Al Khaimah

For example, in Ras Al Khaimah, when purchasing real estate, you can additionally obtain visa packages and business licenses for two people for three years, with the possibility of extending up to twelve years. Prices for housing in the UAE start at150,000 dollars...which makes this market accessible to many investors. The expected rental yield can reach...6-8% per yearfor certain properties, while in elite areas, the return on investment reaches impressive levels17% per year.

Development of construction projects and new infrastructure

The current moment is also characterized by the active development of construction projects in other emirates, such as Abu Dhabi, Ras Al Khaimah, and Sharjah. The opening of one of the largest casinos in the world in Ras Al Khaimah is another factor contributing to the rise in property prices and rents in this region.

Risks for investors

Nevertheless, despite the attractiveness of the market, investors must consider certain risks. For example, there are legal regulations that allow developers to extend construction deadlines by up to one year. Additionally, new buildings often have higher prices compared to secondary housing.

Alternatives in other countries

When looking at other countries, Turkey stands out as one of the most promising locations for real estate investment. Despite the current market facing certain challenges, mainly due to difficulties in obtaining residence permits, there is still an opportunity to achieve a decent rental yield in Turkey.

• Some projects offer guarantees for the buyback of real estate.
• This adds extra protection for investors,
• Increases confidence in the safety of their investments.

Introduction

When purchasing real estate in Turkey, foreign investors and their relatives have the opportunity to obtain a residence permit or even citizenship. However, in the current conditions, it is important to carefully study the situation, as there are differences between "open" and "closed" regions for obtaining a residence permit through property acquisition. We remind you that the minimum investment threshold for obtaining a residence permit in Turkey is currently200,000 US dollars.

Real estate prices and returns

Prices for apartments and houses in Turkey start from50,000 eurosThe potential income from renting out real estate can reach5-7% per yearThis makes the investment quite profitable. The resale with a buyback option opens up more opportunities for investors, adding to the appeal of this segment. An important aspect is the possibility of co-ownership of real estate, which also makes the market more flexible.

Real estate market assessment

The main task for investors is to identify potential price growth.in the year 2023In some regions, a significant price increase was observed up to100%At the same time, stagnation is noted in several areas of the market. Most often, changes in legislation regarding the duration of residence permits and the rules for obtaining them make adjustments to the market, slowing its development. Will the previous opportunities remain, or are we in for a new dynamic in the real estate market? Let's take a closer look at the situation.

Popular countries among investors

Research shows that currently six countries are of the greatest interest to investors, especially for those who are not citizens of European Union countries. The choice of a specific country depends on:

• Investment goals
• Plans and financial capabilities

Among the main factors influencing the choice of real estate, the following can be highlighted:

• Potential income from both rental and resale.
• The simplicity of obtaining a residence permit
• Visa-free options for residency

The next in importance are:

• Options for installment plans and mortgage lending
• The opportunity to start your own business in a chosen area.

Unique project: European Village

One of the popular complexes isEuropean Village, which is located inGonio, Georgia, with prices starting from313,585 eurosfor 320 square meters. This project has already been dubbed the "Batumi Rublevka." The key features of this complex make it particularly attractive:

• The distance to the sea is only500 meters
• Each apartment offers a panoramic view of the sea.
• A picturesque landscape of mountains and a garden unfolds.
• The interiors have high-quality designer finishes.
• There is an open rooftop terrace for relaxation.

Guarantees and environmental aspects

All construction and installation work is carried out with a guarantee. Each house is provided with an individual plot featuring a well-thought-out landscape design and plantings of fruit and decorative trees. Only environmentally friendly materials are used in construction, such as ceramic blocks, natural stone, and marble, both in interiors and in the exterior finishes of buildings. The construction process emphasizes care for nature, with maximum preservation of trees on the developed territory.

Conclusion

In conclusion, investing in real estate abroad presents itself as an attractive and promising way to preserve and increase capital. As we discovered during our research, countries such as Georgia, Northern Cyprus, Thailand, Indonesia, the UAE, and Turkey offer a variety of opportunities for investors looking to diversify their portfolios. Each of these regions has its unique advantages, whether it's favorable conditions for obtaining permanent residency, a steadily growing real estate market, or an increase in rental rates.

Key advantages of different countries

• Georgia:The quick legalization of property and low entry threshold make it accessible for investors from different countries.
• Northern Cyprus:The interesting installment plan and price increases promise to encourage both long-term and short-term investments.
• Thailand:Attracting millions of tourists, it offers a stable income with a well-developed infrastructure for investors.
• Indonesia:Beauty and cultural diversity are becoming increasingly popular among foreign investors.

However, it is important to keep in mind the potential risks, such as price instability or the legitimacy of transactions, especially in countries like Northern Cyprus. Moreover, making an informed choice of the property and conducting a thorough market analysis will be the key to successful investing.

Conclusion

Ultimately, with the right and balanced approach, investing in foreignreal estate can not only be a profitable financial investment but also a way to open new horizons for your personal and professional life. I hope that through this article, you have been able to see the opportunities that await you beyond your country's borders, and perhaps you are already considering your next step as an investor.