A robust economy serves as a fundamental driver for real estate investments worldwide, with indicators such as increasing GDP and financial stability influencing investment decisions. The allure of real estate investment lies in the potential for generating rental income, making higher returns on investment an appealing prospect for investors.
Population growth is another significant factor contributing to the demand for housing and rental properties.
Government policies aimed at attracting foreign investors to residential or commercial real estate further stimulate market growth. Additionally, interest rates play a crucial role in shaping the real estate industry, as higher interest rates elevate the cost of investment and subsequently dampen demand, reports Al-Qabas daily.
On a global scale, the real estate sector is influenced by interest rates, which have historically been kept high to curb inflation. However, following a period of stringent monetary policies, interest rates are anticipated to stabilize in 2024. This favorable macroeconomic environment is expected to present lucrative opportunities for real estate investors worldwide.
Despite the lingering effects of high interest rates and inflation, global real estate markets, including those in Gulf countries like the UAE, are poised for resilience in 2024. Dubai, in particular, stands out as an attractive hub for both commercial and residential real estate investment. The increasing demand for affordable housing in Dubai has created ample opportunities for real estate developers to capitalize on market trends.
Recently, Reddit released a list highlighting the top 10 countries for real estate investment, emphasizing factors such as annual growth in house prices, economic stability, and growth. These factors collectively contribute to enhancing foreign investment opportunities and bolstering demand within the real estate market, for example:
- Türkiye ranks first among the 21 best countries to buy property according to Reddit. In 2023, the country recorded real GDP growth of 4%. In the third quarter of 2023, the annual growth in residential real estate prices in Turkey reached 59.63%.
- Russia is another country that invests in real estate and in the third quarter of 2023, an annual growth in residential property prices in Russia was recorded at 10.7%. During 2023, the country’s real GDP grew by 2.2%.
- According to Reddit, Hungary is one of the countries considered suitable for buying real estate. Annual growth in residential property prices in the country was reported at 6.56% in the third quarter of 2023.
- Another recommended country for real estate investment is Singapore. In 2023, the country’s real GDP growth is recorded at 1%. In the third quarter of 2023, residential property prices in the country rose by 5.85% year-on-year.
- In the third quarter of 2023, an annual growth in residential property prices in Japan was recorded at 4.85%. During 2023, the country’s real GDP grew by 2%. Hence, Japan is ranked as one of the best countries to buy real estate according to Reddit.
- Portugal is ranked as one of the best countries to buy property. The annual growth in residential real estate prices in the country was recorded at 4.81% in the third quarter of 2023. The country also recorded a growth in real gross domestic product of 2.3% in 2023.
- Slovenia is classified as another country considered suitable for investing in real estate. In the third quarter of 2023, the country recorded a 4.08% year-on-year growth in house prices. Slovenia also saw its real GDP grow by 2% in 2023.
- The annual 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 property.
- Redditors have generally recommended Ireland as a country to invest in real estate. Annual growth in residential property prices in Ireland was recorded at 2.94% in the third quarter of 2023. The country’s real GDP was reported to grow at 2% in 2023.
- Switzerland is ranked among the 21 best countries to buy real estate. According to the International Monetary Fund, Switzerland’s real GDP grew by 0.9% in 2023. In the third quarter of 2023, the country recorded a 2.84% year-on-year growth in residential property prices.
