A World without Bounds
Motivated for a variety of reasons, including financial and personal, homebuyers seeking properties outside their country of residence are on the rise, according to Leading Real Estate Companies of the World®, a global network of quality-focused real estate firms that conducted business in eighty-four countries last year.
The surge in cross-border business is indicative of a broader societal trend that reflects the increasingly global world. From remote work to lifestyle goals, there are many factors driving the surge in such real estate purchases.
Trends driving global real estate
The case studies reported by Leading Real Estate Companies of the World® members are numerous and varied: a California resident purchasing an investment property in Mexico to later be used as a retirement home; a German couple in need of a villa within two hours of their yacht berthed on the Swiss border; a semipro surfer looking to take advantage of Portugal’s favorable investment environment; a family moving from Colorado to Italy because of a job transfer. The list goes on.
In recent years, many people have begun feeling more comfortable extending their portfolios to foreign markets. They’re moving where they see opportunity, which, depending on the individual, may be financially motivated, driven by lifestyle, prompted by geopolitical issues, or influenced by a combination of these and other factors.
Generally speaking, the most popular markets are those that are economically stable with an affordable cost of living and a desirable lifestyle. They also offer the potential for a favorable return on investment.
In markets where it is common practice to purchase a second home away from the city environs, some are looking beyond their own borders to destinations in other countries. This trend is especially noticeable in areas where the prices of “recreational” properties have significantly increased.
Popular destinations with broad appeal
Some of the top locations for second-home purchases abroad are those that are easily accessible by plane and have nice coastlines, such as Spain, Portugal, Italy, France, and Mexico.
Other influential factors include a country’s reputation for safety, robust and affordable health-care system, favorable exchange rates, stable and expanding real estate market, areas known for hospitality, and exceptional education opportunities.
Affordability and growth potential are also important considerations. If the price is right, some homeowners may even purchase more than one property. People are investing in countries with a high possibility of future price appreciation, very often in developing countries with significant economic growth, including Thailand, Costa Rica, Vietnam, and India.
The secret to success: working with qualified local experts
Success in the global real estate marketplace requires specific skills and strategies. Buying property abroad can be complicated, so it is essential to work with a trusted partner who will guide you through the process safely using the knowledge only they can provide as a verified local expert.
Because Leading Real Estate Companies of the World® has an active presence in more than seventy countries, the network is an unmatched source for local real estate expertise on a global scale. However, simply having such a presence is not all that matters when it comes to serving a worldwide clientele. Truly understanding cultural diversity goes much deeper than that.
Global opportunities involve dealing with someone who is not like you, and to make the process of international homeownership smoother, it makes sense to work with a real estate professional who possesses the skills and knowledge necessary for facilitating cross-market transactions. The connectivity fostered within the Leading Real Estate Companies of the World® network and the deep resources the organization provides to members are the engine that makes it all happen when it comes to assisting clients worldwide.
Being a global organization is much more than just having representation around the world. It means understanding the nuances of doing business in different places and adapting accordingly with a global mindset. Each year, network members collaborate on nearly 20,000 client introductions, and each relationship is carefully managed with an understanding of how real estate is conducted in the local market, with a sensitivity to cultural and communication differences and—above all—a hands-on approach.
If you are considering a real estate purchase in another country, the first step should be contacting your local Leading Real Estate Companies of the World® member. They will introduce you to the most qualified professionals in your destination of choice in virtually any market worldwide while providing unmatched expertise to help you navigate the process and pursue your international real estate dreams.
Check out this resource outlining programs designed to help make a move abroad possible.
