Real Estate Investment overseas

If you have decided to invest in foreign real estate, you must definitely study the level of demand for it. In different countries, due to economic, social or historical factors, different types of housing may be in demand. 

Accordingly, there is no universal option suitable for all states. Together with the overseas property agency Mercury Group, we will prove this with three specific examples.

Latvia takes the 122nd place among all countries in the occupied area, which is 64 589 km². Moreover, the state’s population is over 1,913,000 people, which is already creating one of the highest overpopulation rates. These circumstances worsen the natural features of the territory: in Latvia there are more than 12 thousand rivers and 3 thousand lakes, and forests occupy about 54% of the whole country. Given the reverent attitude to nature, most of the territory is under protection. This includes 4 national and 42 nature parks, 260 nature reserves, 255 nature monuments, 7 protected marine areas.

All this is significant on the possibilities of building residential real estate, creating huge demand for it even among the local population. The synthesis of these geographical and political circumstances significantly affects the pricing of housing - renting real estate in the long term in some regions is much more profitable than buying your own. This makes investing in residential real estate with the goal of leasing it a very profitable and cost-effective option. You will not only receive monthly income, but also retain ownership, which, coupled with high demand, will be a long-term source of profit.

Learn more about real estate in Latvia

Spain is one of the main cultural and tourist centers of Europe. In 2018, it was visited by over 82 million tourists from around the world, and the total income from this destination was more than 100 million euros. According to Reyes Maroto, Minister of Industry, Trade and Tourism, tourism is an important sector in the influx of finances into the country's economy and an important sector for job creation. Already on this basis, we can conclude that investment in residential real estate in Spain will not be as effective as in the case of Latvia. Many locals in the midst of the tourist season rent their homes for visitors, which will create additional competition. To avoid this, it is enough to simply redirect cash investment into the relevant industry. In this case, the best option would be to invest in a hotel-type commercial property. To do this, you just need to choose a good location in such tourist cities as Alicante, Avila, Barcelona, ​​La Coruna, Leon, Madrid, Santiago de Compostela.

From the point of view of tourist interest and infrastructure, this group may include any cities in Spain. Successful location and quality service will allow you to extract the maximum income and become a worthy competitor in the hotel industry. Moreover, through the purchase of real estate in Spain you can get a residence permit. In this case, it is allowed to purchase both private real estate and commercial, including land. The main thing is that the value of the propertyshould be at least 500 thousand euros. An important feature of such a residence permit is that you will not be able to get an official job, but investments in the hotel industry completely level this out, since you will be able to earn income.

Learn more about real estate in Spain

The United Arab Emirates is deservedly considered the economic center of the world, which harmoniously combines the extraction of natural resources, development in the field of IT and business investment. Together with a healthy tax system and a developed social sphere, the UAE has become the country with the highest standard of living. However, despite the highly developed economy, real estate prices in the Emirates are now at a historic lowrate over the past ten years. This makes it a very profitable option for investors from all over the world. The question remains: what property to invest in? The answer will be quite unexpected: in villas and penthouses. The fact is that in the country the issue of residential real estate is not as acute as in Latvia itself, and the financial condition of citizens allows you to rent luxury real estate options. At the same time, a combined type of lease is practiced in the United Arab Emirates, when in the rented villa the owner himself can live only couple months in a year, and the rest the tenant.

To do this, there are even special companies that prepare housing for rent and take on all management responsibilities. Given the intensive growth of the country's economy, this option is very promising, since, in addition to the profit from renting, the nominal value of the object will increase, and in the future it can be realized at a much higher cost. In addition, the purchase of real estate in the UAE is also equivalent to investing, allowing you to get a new type of visa for a period of 5 to 10 years with a subsequent extension. Thus, the state will be able to attract more money into its economy and approve its status of country No. 1 for investors. Add to this the zero interest rate of taxation and the lower cost of real estate (on average 20–40% lower than in the USA, Paris or London) - and you will get some of the best conditions in the premium segment.

Learn more about real estate in the UAE