8 Most Affordable Countries to Buy a Vacation Home

Owning a country house means that you can take a vacation anytime. But with rising real estate prices and mortgage rates in the United States, your dream of a second home may be beyond the country's borders. Investing in real estate abroad can initially have its legal complexities - always work with a local certified real estate agent and lawyer when closing a deal. But it also has its advantages: immersion in a new culture, always having a personal place to relax, which you don't have to share with anyone, and in some cases you may also obtain a second citizenship. Not to mention that investing in real estate abroad can also bring additional income if you decide to rent it out.

To help you narrow down your search for an affordable country house abroad, we spoke with professional brokers around the world and gathered eight of the best, most affordable, and dream-worthy destinations to consider when looking for a home.

Portugal

In recent years, Portugal has become a popular vacation destination. The country enjoys over 300 sunny days and delights visitors with its pristine sandy beaches, exquisite cuisine (and wine), charming little villages, and captivating culture. The Algarve region in the south of the country has become one of the most sought-after locations for a second home due to its stunning landscapes, moderate cost of living, and numerous opportunities for outdoor activities. "The most popular areas for real estate investment in the Algarve are usually located near the coast, such as Vilamoura, Carvoeiro, Lagos, and Albufeira, where there are many resorts, golf courses, and other amenities. However, there are also many small towns and villages in this region where buyers can find more affordable options for those seeking a peaceful lifestyle," said Sandra Vicente from Portugal Sotheby's International Realty to Travel+Leisure, adding that potential buyers will find a variety of property types - from old houses to modern new apartments and villas.

Saint Martin

Divided between France and the Netherlands, this picturesque Caribbean island offers an elegant blend of cultures and traditions, set against the backdrop of pristine sandy beaches and green mountains. (The island is known as Saint Martin in English, Saint-Martin in French, and Sint Maarten in Dutch.) But for those who would like to visit Saint Martin for more than just a weekend, there are many options for purchasing a vacation home on the island without breaking the bank. According to Harrison Druen-Reid, an agent at St. Maarten Sotheby's International Realty, there are several reasons for this, including the large amount of available real estate, competition between the markets on both sides of the island, and tax incentives. "According to the Caribbean Association of Real Estate, the average price of a single-family home in Saint Martin is around $550,000, which is lower than in other popular Caribbean destinations like the Bahamas or the Cayman Islands," said Druen-Reid. He explained that potential buyers can find apartments for $200,000 on the Dutch side of the island and around $107,000 for a small studio on the French side, where prices are generally a bit higher.

Crete, Greece

As the largest island in Greece, Crete offers a multitude of pristine sea views, stunning landscapes, and untouched places where vacationers can enjoy solitude and tranquility. "Crete is also known for its rich history and cultural heritage, and it is home to some of the most impressive ancient ruins in the world, as well as museums and cultural attractions that can satisfy more culturally oriented individuals," shared Marios Pavlakis, an Athens real estate agent from Sotheby's International Realty, with Travel+Leisure, pointing out that Knossos, dubbed the oldest city in Europe, is just outside the capital of Crete, Heraklion. Pavlakis explained that while the real estate market on the island is experiencing a surge in interest, you can still find good deals, especially in areas like southern Crete, where there are fewer crowds. According to him, the average price per square meter is €6,429 (or about $636 per square foot), but it can drop to €2,727 (or $270 per square foot).

Bulgaria

This small Eastern European country, roughly the size of Tennessee, is steeped in history and is home to over 370 kilometers of picturesque Black Sea coastline, magnificent mountain ranges (including the highest peak on the Balkan Peninsula), and one of the oldest wine regions in Europe.

Sicily, Italy

“In Sicily, especially in the west, there is a great interest in small villages where time moves much slower compared to big cities, the cost of living is lower, but the quality is, in some respects, better,” said Diletta Giorgiolo, head of the residential real estate department at Italy Sotheby's International Realty, to Travel+Leisure magazine. She added that authenticity, untouched nature, culture, and unique cuisine influence life on the largest Mediterranean island off the southern coast of Italy. She explained that property prices in cities are usually lower than in rural areas, which offers more privacy. New markets like Menfi, Sciacca, and Cefalù are more affordable than the more established ones in Noto, Taormina, and Palermo. “In the city, prices start from 2,000 to 3,000 euros per square meter, and a 150-square-meter property can cost between 350,000 and 500,000 euros,” she added, which amounts to between $372,870 and $532,673.

Montenegro

According to the report on emerging markets for second homes, Eastern Europe, including Montenegro, is experiencing unprecedented growth in real estate sales. It's easy to see what makes one of the smallest countries in Europe a vacation destination, especially for yacht enthusiasts and yacht owners. "Along with its stunning landscapes and unique combination of sea and mountains in a very small area, Montenegro offers excellent weather and a relaxed lifestyle with an emphasis on outdoor activities. In spring, you can even swim in the sea and go skiing on the same day," said Niko Lakovich, managing partner of Montenegro Sotheby's International Realty, to Travel+Leisure magazine. The vast stretch of the country's Adriatic coast and the top-notch marina Porto Montenegro in Kotor Bay have turned Montenegro into one of the best sailing destinations in Europe. And with the launch of several luxury developments in recent years - particularly Luštica Bay and Portonovi, which is home to the One&Only resort - Montenegro is quickly becoming a popular vacation spot. Lakovich added that it's better to look for properties outside of major developments to find something at an affordable price. For example, a two-bedroom, two-bathroom apartment with 1,044 square feet of continuous sea views and a private roof in the coastal town of Tivat will cost you 360,000 euros, or about 383,240 dollars.

Mexico

Our neighbor to the south is a true paradise for a second home with its pristine beaches, vibrant restaurant scene, rich culture, and history. The regions of Cancun and Playa del Carmen have long attracted vacationers, but they are now also home to a growing community of property owners and expats thanks to easy access from the U.S. (several airlines operate direct flights to Cancun International Airport daily), an increasing number of offerings, good infrastructure, and an overall excellent quality of life that doesn't require huge expenses.