Since the last two decades, one English word has gained prominence, especially among working professionals. Passive Income. Though there are plenty of options to make money by having a 9 to 5 job, the returns are less attractive. But when it comes to Real Estate, investing in immovable properties has always fascinated professionals since the 1990s as they can get a 100% profit within a certain period of time. With the invention of the internet, and businesses attaining a global audience, it has become easy to conduct real estate business all over the globe. So, millennials are showing a keen interest in real estate, especially acquiring property. The main reason, they can make a decent income either from rent or sales in the long term. With that being said, let us look at the best countries for real estate investment in 2024.
Guide for Real Estate Investment in 2024
Are you interested to venturing into the real estate industry? Is it because you are guaranteed 100 percent returns? You can always enter at your own will, but you need to get some expert advice. Also, you are liable to invest in real estate all over the globe. But there are some countries, and in them certain states, metropolitan cities, localities and areas where investing in real estate is considered attractive. Without wasting a moment, let us focus on the best nations for investing in real estate for 2024.
1. United Kingdom
As per real estate experts, the industry is slated to reach more than 21 trillion USD by 2024.
There are many types of real estate (buying/selling of land, leasing of apartments/land, residential properties). The residential sector is expected to reach a volume of more than USD 17.85 trillion this year.
The UK’s real estate market is experiencing hike, because of demand for residential housing facilities. The hike could also be due to many foreign investors and workers.
The high yields in the UK when it comes to real estate is related to
- Increase in population
- Limited residential areas apply
- Rental buildings
The main reason the UK has become a favourite for investors in real estate is because of its stable economy. As per a survey, the sector has invited business proposals from mainly overseas investors and the prime locations are Manchester, Edinburgh, Sheffield, London and Oxford etc.
Some favourite cities in the UK that are experiencing huge real estate investment are as follows:
1. Sheffield
The transformation of Sheffield from an industrial city to a cosmopolitan hub was slow, but steady. From 1997, the area has seen a growth of small & medium scale enterprises and new technology industries that has set the tone for extensive real estate growth.
2.Edinburgh
The capital of Scotland is known for its famous sandstone buildings and historical significance. The two reasons and a UNESCO status are important for the UK tourism and business sector. Also, the presence of reputed organisations such as IBM, Amazon and Microsoft has also given a boost to its entrepreneurship status and job market. All these factors have contributed to making Edinburgh a hot spot for investing in real estate.
3. Manchester
The city has gone through a complete makeover from the 1990s and it has become an economic hub. With major companies such as HSBC, Google and BBC making a mark in Manchester, there has been an influx of working professionals from other cities. This has given rise to a steady demand for residential homes and rental spaces.
4. Oxford
Mention Oxford, and you get reminded of the prestigious university that attracts students from the local population and international students. A tour of the city will take you to the famous libraries, art galleries, World Heritage Sites, and museums. With all that being said, there is no doubt that there is a severe shortage of rental apartments and residential homes. So, the time is ripe for the international investors who want to have a major share of the space in Oxford.
5. London
The capital of England, and considered on par with New York City – the place is well-known for its investors and international companies. More, it is the favourite place for start-ups. The population is on the rise, and companies are attracting international talent. So, there is no doubt that the investment ratio in London is bound to give magnificent returns.
2. United States
As per industry experts, the real estate industry in the US is going through a lull, but it will pick up after July 2024. Since many start-ups and business conglomerates are interested in a hybrid working set-up, there is a reduction in demand for office space. The number of rental apartments has increased and so there are chances there will be a reduction in rent prices in metropolitan cities.
By the end of 2024, the real estate industry in the US is expected to reach more than 330 million. The country has a strong GDP and a robust population comprising millennials. There are also professionals from every corner of the globe vying to work in the US, and interested in owning an apartment.
Professional real estate companies who have properties in areas which are experiencing rapid urbanization and an increase of start-ups can expect long-term growth.
Let us take a look at the cities that have seen a massive boom in Real Estate investment:
1. Nassau County, New York
The country is filled with high-profile working professionals and thus the hike in prices for real estate.
2. Boston, Massachusetts
The city is not only famous for its university, but also contains other attractions such as historical sites and hospitals. For the workforce, it has biotech companies, the main reason for a demand for rental houses and apartments. With many international students making a beeline for the universities in Boston, there is no doubt that the real estate market is on a swing.
3. Seattle, Washington
There are many small companies and high-tech corporations in the Seattle area, the most famous being Amazon and Microsoft. The prices have skyrocketed over the last decade for real estate. However, this 2024, as per experts, it has mellowed down, but still beyond the range of the middle class. A price for a home in Seattle is a hundred times more than in a normal town in the US.
4. Washington, D.C.
The capital of the country definitely takes the cake when it comes to real estate prices. As per experts, the price of a normal home is almost 2.5 times more than any other city in America. With tourism making a major part of the revenue because of world-famous attractions such as the National Mall, Union Station, museums and historical sites, it is not only real estate prices but also other daily items such as groceries that are expensive. However, if you are interested in high-profile properties, then the city can cater to your taste with different properties.
5. Las Vegas
The very thought of Las Vegas brings us a sense of entertainment and fun because of its casinos, world-famous hotels and hot spots. The place has every aspect for a traveller, ranging from great infrastructure, plenty of jobs, and not to mention the tax benefits. For many real estate companies, Las Vegas is one of the prime places on their list. However, unlike Washington DC, the city offers affordable housing options, and in some areas, there is a reduction in rental prices.
3. Germany
As per the real estate experts, the country is going through major challenges in the housing sector. The real estate professionals are facing the heat because of an increase in interest rates, hike in construction costs and other factors. However, these factors have increased the interest of the global real estate companies. It is estimated that majority of Germany’s real estate is experiencing an increase in purchase by citizens of other countries, namely Hungary, Italy, France, Canada and United States.
The cities of Germany where there are plenty of real estate investments are as follows:
1. Hamburg
Known internationally as one of the largest cities in Germany, Hamburg is also famous for its port and trading activity. Also, there is no dearth of music, art and other forms of entertainment. The city, though known for its diverse population, has a considerable amount of high-profile working professionals. There is no doubt, that rapid urbanisation is still in the process and the rental apartments are fetching good prices. As per a survey, foreign investment companies have focused on this city.
2. Düsseldorf
Known internationally as a state for its large population, this city is also the capital of North Rhine- Westphalia. It has a population of diverse nationalities celebrating multicultural festivals and occasion. This city has major financial corporations, fashion houses, and a vibrant cultural scene. Unlike the other cities, Dusseldorf real estate market has remained unaffected since the past two years when compared to other Germany cities.
3. Frankfurt
It is a challenge to describe a city that is home to many of the world reputed financial institutions such as the German Stock Exchange, European Central Bank and others. Frankfurt is popular for its other names, such as the Financial Capital of Germany (Financial Capital of Europe).
The airport in Frankfurt is one of the busiest places in the globe. The population consists of multi-diverse nationals, but adopts a modern lifestyle. Similar to Hamburg and Dusseldorf, the city has an excellent transportation facility, which makes it one of the best places for travellers.
4. Berlin
On the golden pages of history, a lot has been written about the Berlin Wall. Berlin attracts not only working professionals but also artists, scientists as well as start-up enthusiasts. With a wide range of new cultural activity, the city offers exciting lifestyle to its inhabitants.
4. Japan
Known as the Land of the Rising Sun, Japan is a country known for its disciplined workforce. It is a country known for its rapid development and urbanization. As per experts, it has a stable economy, the main reason why expats are interested in buying assets in the country. However, it has to be known, that only some cities are preferred. Tokyo is the most preferred destination for investment in real estate. Osaka and Kyoto are also preferred destinations for investment in properties.
Main reasons for Japan becoming a hot bed for real estate investment:
Excellent Job Opportunities: The diverse job vacancies attract local and international talent.
Demand for Rental Properties: With a limited housing supply, there is a heavy demand for apartments and homes, thereby giving the owners good profit.
Tourism: With Osaka, Kyoto being a favourite tourism destination for travellers, the property prices are also decent when compared with Tokyo.
1. Tokyo
Tokyo is the capital of Japan, and the real estate options are immense. The city is also known for its financial companies, tech start-ups and vibrant art culture. The population is on the rise as well as the demand for rental houses, office spaces and other properties. As per a survey, investing in real estate spaces of Tokyo is sure to offer high percentage returns in terms of long-term growth.
2. Osaka
This city is recognized for its multiple industry sectors, which makes the place a busy commercial centre, the spaces ranging from retail spaces and residential apartments. Because of the location and rapid urbanization projects, the city promises the best benefits for real estate investors.
3. Fukuoka
This city is fast gaining prominence in the real estate global market. The major advantages are the favourable business environment, and the local laws. Foreign real estate investors searching for spaces in a metropolitan hub, select Fukuoka as one of the prime locations.
5. Malaysia
As per a financial survey, the real estate sector in Malaysia has registered more than one lakh transactions between January to March 2024. This shows more than 30 percent increase than the previous year.
Considering as one among the top countries in South-East Asia when it comes to foreign investments, Malaysia’s biggest advantage is the Government initiatives that promote foreign investments. There are various affordable loan options for millennials by international banks who want to buy their first homes.
We will take a brief look at the cities that are considered attractive for real estate buyers:
1. Kuala Lumpur:
Kuala Lumpur, the bustling capital city of Malaysia, is a top choice for real estate investors. The prices in this capital city are the highest when compared to other cities in the country. Main reasons for foreign real estate companies to invest in this city – It offers a blend of modern city life with rich culture, making it a comfortable place to live.
The other cities that are considered attractive in Malaysia for investing in real estate are
2. Selangor
This city is situated close to Kuala Lumpur, and has become one of the preferred places for businesses and residents.
The main reasons are –
- The cost of living is less in this city. The prices of land are less when compared to other cities in this country.
- The city has some of the best developed infrastructure and various construction projects are on the pipeline.
The other cities in Malaysia that have captured the attention of real estate investors are –
- Sabah
- Penang
Conclusion
We sincerely hope that this blog on the best countries for real estate investment in 2024 has given you valuable information. We understand that we have listed only five countries; the other countries for investment in real estate in 2024 and the forthcoming years are UAE, Canada, Sweden, Cyprus, Italy and Singapore. In the next magazine, we will be covering the details of real estate investment in these countries.
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