Why are foreigners investing in real estate overseas?

Why are foreigners investing in real estate overseas?
Reading time: 3 minutes
Published: 2nd March 2020, 12:00pm

Besides factors like immediate profit, rental income, or housing appreciation, in 2019, several economical reasons also motivated worldwide investors to purchase real estate overseas: 

Brexit;

The Trump Administration;

The trade war between the US and China that led Chinese buyers to seek other investment destinations;

The growing interest in countries like Spain and Portugal that offer lower property prices and good quality of life.

Geopolitical concerns related to Brexit slowed down Eurozone’s growth (from 50% in 2018 to 37% in 2019), rising trade tensions and decreasing short-term investment plans (from 35% in 2018 to 27% in 2019). Despite this downfall, Europe still is the world’s most attractive region to establish business operations and for investing in real estate overseas. Investors’ perception towards Portugal follows the same pattern, but Portugal’s attractiveness remains strong (52%) and the number of investors interested in purchasing in Portugal is among the highest in Portugal - totaling 25%. Brexit is equally having a positive impact on Spain as a country, thanks to foreign buyer interest rising significantly there.

Source: ey.com
 

The U.S has also seen an overall decrease in investment interest, particularly from the Chinese market due to trade policies implemented by the Trump Administration. Studies indicate that this market’s interest has shifted to countries like Canada and the UK.

 

Regarding Portugal’s situation, the Lisbon city continues to be at the top 10 targets for real estate investments in 2020. However, the perception of the country’s attractiveness among investors is gradually shifting, as the surrounding cities are competing for the deserved attention. This shift is emphasized by established investors, for whom these regions are starting to look more promising.
 

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Portugal is also nurturing a culture of innovation that opens doors to the country’s digital transformation. More and more businesses are being established in the country because there is a higher value-for-money for developments in Lisbon than in other major cities, as well as cheaper office and house prices, compared to other European cities. As a result, investors realize that there are still several types of real estate investments available in sectors such as Hotels, Residential and Retail. 

If you’re looking to invest in these sectors, you will want to consider getting the return of your investment. How much profit a building generates depends on its size, income and how much money you have invested in the property. Property management will also be an intensive process if the property has more than four units. At Portugal Homes, we can provide you with market reports on the property type and potential returns, through our After Sales Department, which is solely committed to satisfying clients’ needs post-purchase, ensuring any and every matter is addressed.

investing in real estate overseas

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Investidor dos EUA

Ryan was an excellent real estate agent, he really steered me in the right direction based on what I said was important to me. Living in another country, I wasn't as familiar with the city as he is. Where I thought I wanted to live and what I truly wanted were not the same. He took the time to listen and figure out the best spot for me, and we are very happy with it - far more than we would have been elsewhere.

Investidor dos EUA

A experiência geral foi ótima desde o acompanhamento até o pós-venda. Gostaria de agradecer especialmente ao Sr. Simon, à Sra. Francisca e à Sra. Mariana.

Investidor dos EAU

George Hobson é um jovem agradável, conhecido como conhecedor, experiente, trabalhador, honesto e disciplinado; Senti-me muito confortável em fazer facilmente o meu investimento.

Cliente dos Emirados Árabes Unidos

A Luísa é uma pessoa muito compreensível, e sabia exactamente o que procurávamos; até nos mostrou e deu-nos mais opções de escolha. Aconselhamento, hospitalidade e serviço muito profissionais.

Roshana (Zulfiqar) Mian | Hong Kong

O meu consultor, Mathew McGurn, foi realmente excelente! Os seus conhecimentos, profissionalismo e atenção ao detalhe foram muito apreciados. Ele trabalhou duro não apenas para encontrar uma propriedade que atendesse a todos os meus requisitos, mas também negociou com sucesso com os agentes, garantindo que minha oferta conquistasse outros compradores que disputavam a mesma propriedade. Além disso, as suas capacidades de comunicação, tempo de resposta rápido e ajuda geral para a minha instalação em Portugal foram acima e além do normal.

Investidor dos EUA