Best Countries for Property Investment in 2023

05 Jun 2023

As we approach the midpoint of 2023, the global real estate landscape continues to evolve, presenting investors with a myriad of opportunities to diversify their portfolios and achieve financial success. The quest for the best countries for property investment can be an exhilarating adventure, taking you across continents and introducing you to the unique attributes that make each nation stand out.

In this article, we will journey through the top countries for property investment in 2023, uncovering the reasons behind their appeal and providing you with invaluable insights to make well-informed decisions and maximise your returns.

Why Invest in Global Property

Why should you consider investing in property this year? Here are the key factors that make 2023 an ideal time to join the property investment game.

Resilient Asset Class: Amid ongoing economic recovery, property remains a steadfast asset class, providing long-term value and growth potential.

Emerging Opportunities: New opportunities post COVID-19 continue to emerge in 2023, presenting investors with untapped potential and attractive opportunities for high returns. As the world moves on from the pandemic and people start moving around again, short-term lets have attracted a significant amount of interest driving up yields. However, it is important to understand all that comes with the various let options and what to factor in (such as void periods), download our guide here.

Diversification: Spread your risk across various countries and markets, reducing the impact of local market fluctuations on your overall investment portfolio.

Factors to Consider When Investing in Property

Before diving into the top countries for property investment, let's first examine the factors that should be considered when investing in real estate. These factors can help you determine whether a particular country is an ideal destination for property investment opportunities. These are also some of the key factors that our methodical investment team have considered before committing to the many successful global investments across our portfolio.

Economic Growth: A strong economy is a key indicator of a healthy property market. Countries with robust economic growth are likely to experience rising property prices, making them ideal locations for property investments.
Political Stability: Investing in a country with a stable political environment reduces the risk of sudden changes in regulations or policies that could impact your property investment.
Infrastructure Development: A well-developed infrastructure can significantly impact property values. Good transportation, utilities, and public services can make a location more attractive to potential tenants and buyers.
Capital Appreciation: A country with strong economic and population growth and an undersupplied housing market will result in strong capital appreciation.

Top Countries for Property Investment in 2023

From picturesque coastal towns to bustling metropolises, the world of property investment is brimming with opportunities. In 2023, a select few nations are set to outshine the rest, offering unparalleled potential for growth and an enticing quality of life. Our curated list of top countries for property investment in 2023 caters to a diverse range of investor preferences. By diving deep into the unique characteristics and market trends of each location, you'll be equipped with the knowledge and inspiration to make informed decisions and elevate your property investment portfolio to new heights.

We have created a detailed investment case for each of these countries, which you can download at no cost by visiting their respective pages.

United Kingdom

Despite various challenges, the UK property market offers numerous benefits for international investors with a reputation for resilience despite uncertain circumstances. This is largely due to the ever increasing under-supply of housing which has led to continuous pressure on property and rental prices. Between 2010 and 2020, IP Global’s key UK cities (London, Manchester, and Birmingham) outperformed the FTSE 100 in price growth. London led the charge with 77% growth in the past decade.

Property prices are anticipated to see subdued growth due to mortgage rate changes throughout 2023 following a very buoyant year for real estate, but the UK has always shown to operate one of the best global property markets for long-term growth. Average house prices are estimated to increase around 34% between 2022 and 2035 and when factoring in the ability to leverage, ROI is in excess of 100%. Rental properties also are in short supply in London as well as many regional cities offering favourably low void periods and opportunities for rent increases not seen as regularly in other markets.

Portugal

Portugal has emerged as a hotbed for property investment thanks to its stable economy, attractive tax incentives, and beautiful coastal locations. The country's GDP growth rate has steadily increased, with an average annual growth rate of 2.6% from 2017 to 2021, signalling a strong economic foundation for property investment (World Bank, 2021). Moreover, Portugal's Golden Visa program has attracted numerous investors, with a total of €5.6 billion invested in the real estate market since its inception in 2012 (SEF, 2021). International housing demand in Portugal's district capitals surged to 27% due to urban regeneration and luxury resort investments, while rental demand rose from 24% pre-pandemic to 32% in December 2022.

Germany

Germany is the third largest exporter in the world, with an economy expected to reach EUR 5.34 trillion by 2035. As Europe's largest economy, Germany offers a robust property market with strong potential for capital appreciation. The country's GDP growth rate was 2.5% in 2021 (World Bank, 2021), and house prices have increased by an average of 5.8% per year between 2015 and 2020 (Global Property Guide, 2021). In fact, house prices are predicted to increase by a further 45% by 2035. In particular, cities like Berlin, Leipzig, Frankfurt, and Munich are predicted to experience significant growth.

Tips for Successful Property Investment

Diversify Your Portfolio: Diversifying your property investments across different countries and property types can help minimise risk and enhance your overall returns.
Research Local Markets: Thoroughly research the local property market, including rental yields, capital appreciation, and local amenities, to ensure that your investment aligns with your financial goals.
Consult with Experts: If you’re dipping your toes into a new market, it might be best to work with a successful investment company that has a proven track record of successful real estate investments.
Consider Financing Options: Explore different financing options, such as mortgages and loans, to help you leverage your capital and increase your investment potential.
Understand Legal Requirements: Familiarise yourself with local laws and regulations related to property investment, including taxation, property management, and landlord responsibilities.
Plan for Long-Term Investment: Property investment is typically a long-term endeavour. Be prepared to hold onto your investment property for an extended period to realise maximum returns and capital appreciation.
Monitor Market Trends: Keep abreast of local and global property market trends to ensure that your investment remains competitive and well-positioned for growth.

A World of Opportunity in 2023

As we reach the end of our insightful exploration of the best countries for property investment in 2023, it's clear that the global real estate landscape offers a diverse array of promising opportunities for real estate investors. By setting your sights on these premier destinations, you can capitalise on their unique strengths, solid economic foundations, and promising growth prospects.

However, the journey doesn't end here. The global property market is ever-changing, and staying informed about market trends and emerging opportunities will empower you to make strategic investment decisions that align with your financial goals. We trust that this comprehensive guide to the top countries for property investment in 2023 has inspired you to embark on your next investment adventure, armed with the knowledge and confidence to take your property investment portfolio to new heights.

Ready to explore the lucrative property investment opportunities in these top countries?

Speak to one of our real estate investment experts today to begin building your property portfolio here and unlocking the full potential of your investments in 2023 and beyond.

IP Global has been the property investment partner of choice for over 15 years. From sourcing, financing and acquisition to ongoing management and resale, we pride ourselves on making real estate investment an easily manageable and highly profitable aspect of your portfolio.

Which cities in Europe are best to invest in real estate in 2023?

In 2023, several European cities show promising potential for real estate investment. Here are a few cities to consider:

London, UK: Despite the challenges faced by the UK property market, London continues to attract investors due to its status as a global financial hub and diverse economy. With the anticipated decline in property prices throughout 2023, investment opportunities may arise in various areas of the city.
Leipzig, Germany: As one of Germany's fastest-growing cities, Leipzig offers real estate investors the opportunity to benefit from its strong economic growth and increasing demand for housing. The city has a thriving job market, affordable property prices, and a rich cultural scene, making it an attractive destination for both local and international investors.
Berlin, Germany: Berlin has become a popular real estate investment destination due to its booming tech scene, young population, and comparatively low property prices. The city's strong rental market and the potential for capital growth make it an attractive option for those looking to invest in rental properties.
Cities in Portugal: Portuguese cities such as Lisbon and Porto are emerging as attractive real estate investment destinations. These cities offer a combination of relatively affordable but growing property prices and growing tourism industries. Additionally, the Portuguese government has implemented favourable tax incentives for foreign investors, further boosting the country's appeal as a real estate investment destination.

Which country has the highest ROI on property?

The highest ROI on property investments can vary depending on market conditions, property types, and economic factors. It is essential to research and consult with real estate experts such as IP Global when looking for high-ROI real estate investments.

Which country is best for rental investment?

The best country for rental investment depends on various factors, such as rental yields, property values, and the stability of the local economy. In 2023, countries like France, the UK, Germany, Spain and Portugal are expected to offer good rental investment opportunities due to their robust tourism industries and the steady demand for rental properties. Additionally, the United States continues to be a popular destination for rental investments, particularly in cities with strong job markets and growing populations.

Our team of experts is committed to assisting you in purchasing an investment property and guiding you through the entire process. To request our investment case or ask any questions, simply use our contact form. We'll be delighted to get in touch and provide the information you need to make well-informed decisions.