Sanjeev Arora, Director, 360 Realtors
Indians are one of the key buyers in the global property market. They generously invest in prominent markets internationally such as Singapore, Hong Kong, Dubai, USA, and London, etc. Indians buying fervour is dictated by numerous factors such as yield, lifestyle, education, business, and much more.
While the popular real estate markets will continue to attract Indian investors, there are a host of less popular but equally attractive regions, that can give elevated returns to discerning buyers. These markets offer simplified property ownership for foreigners alongside attractive potential returns.
Here is a list of top emerging property markets, wherein Indians can mull buying a property in near future
Malaysia: The South East Asian country offers a relatively simplified and hassle-free property ownership for foreign buyers. It is one of the few Asian country which also allows foreigners owning land parcels alongside flats, row houses, condominiums, etc. Apart from few regions, which are reserved for local Bumiputra, foreigners can own a property almost anywhere in the country.
Rental yields are low in Malaysia, mostly in the range of 2.4- 3%. However, due to high demand in Malaysia, property is a safe bet. Average property prices have risen by ~ 9% in 2023, marked by strong long-term demand. This stems from a healthy economic outlook, growth in world class infrastructure, and higher percentage of migrant workforce.
Property taxes are high in Malaysia. There is a flat 20% tax on rental income, while capital gain taxes can vary from 15 to 30%. The silver lining is that the market is very secured and transparent, which is a prerequisite for foreign buyers.
Srilanka: The picturesque island country can offer great opportunities for discerning buyers and investors. Amid recovery in the economy the demand for high-class modern properties are sharply rising in the Srilanka. There is plenty of options in Srilanka to buy second homes and holiday home properties, besides apartments, retail, and mixed-use real estate. In addition to cultural similarity and geographical proximity, property prices are affordable compared to other markets, which are further luring Indian property buyers.
The size of the Srilankan real estate is around USD 590 billion, out of which residential real estate comprise USD 341 billion. The market is expanding at a comfortable rate of 6-7%.
Belarus: Despite relatively moderate economic growth compared to its regional peer, Belarus will continue to intrigue investors and property buyers from all over the world. The property market is growing at rate of around 5-6% marked by healthy demand, growth in urbanization, and improvement in infrastructure. In the first 3 months, during Jan- March, over 4000 transactions took place in capital Minsk, which is 20% higher than the same period last year. Land ownership is not allowed in Belarus. However, foreign buyers can invest in apartments, condominiums, and other options. The country also offers attractive rental yield in the range of 4-5.7%.
Portugal: The Mediterranean country is home to a fast-growing property market. Average property markets have climbed by around ~ 50% over the past 5 years. Urban population in Portugal is set to rise by 1% over the next 4 years, which will fuel housing demand in Portugal. One of the sub-segments which can perform tremendously well in Portugal can be PBSA (Purpose Built Student Accommodation). International students are rising at a rate of 6%. However, currently the PBSA segment is highly underserved in Portugal, which further makes it a lucrative segment to look into. High street retail is also a potential market, which has grown in the double-digit bracket in the recent years.
