These 5 countries are the top hot spots for property investment in 2018

With the start of 2018, investors are looking for the hotspots to invest their money into for the coming year. Property remains one of the most popular investment options.

Of course, property investment is best done over long term to see the best returns. So where will you be investing in 2018?

Here are the top 5 hot spots for overseas property investment in 2018 according to Global Property Guide:

 

In Asia – Malaysia

In the long term, Malaysia is one of the best spots for Singaporeans to invest in. Apart from its general proximity, some of the most vibrant hot spots within Malaysia itself are right next to Singapore. One of the most sought after spots to invest in right now is of course the Iskandar project. Iskandar Malaysia has already attracted tens of billions of ringgit in investments and continues to command plenty of demand from regional and local investors. Now, with the High Speed Rail (HSR) coming up and the Rapid Transit System (RTS) connecting Johor Bahru (JB) to Singapore from 2019, investors have more reasons to invest in the Iskandar region. For a more in-depth analysis into Iskandar, read our article here.

 

In Europe – Hungary

Surprisingly, the hot spot for Europe in 2018 is not London. Or perhaps unsurprisingly, since, despite the plunge in London house prices due to Brexit, it still remains one of the most expensive places in the world to buy property. Thankfully, there are other options in Europe that have plenty of potential for capital appreciation. One of the options investors can consider is Hungary. Its capital, Budapest, is one of the most alluring places for property investors right now, ranking 10th most attractive according to CBRE’s annual Investor Intentions Survey, launched in March 2017. Housing prices are on a rising trend while rental laws are favourable to landlords, raking in yields of 5-6%. Its culture seems to be growing richer by the day, making it a very pleasant place to live in, attesting to its potential as a property hot spot.

 

In the Middle East – Jordan

Though the barrier to entry can be a little tricky and its laws a little sticky, Jordan is a place to consider if you’re looking for a long term investment horizon (of more than 5 years). Foreigners can buy property in Jordan, provided Jordan and the buyer’s country of residence have a reciprocal relationship, and that the approval of the Cabinet (Council of Ministers) is obtained. But foreign buyers can only sell the property five years after acquisition. Property rents are considered to be good in its capital, Amman. However, investors should note that due to the influx of refugees into the capital, smaller apartments yield significantly more than larger apartments.

 

In Latin America – Colombia

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Colombia has a strong historical record for property for the past eleven years. In its 11th year, during the year to Q1 2017, prices went up by 8% (2.66% inflation-adjusted), according to the Banco de la Republica Colombia (Banrep) index. A confluence of factors, which include better security, a stable, growing economy (compared to other Latin American neighbors), has made foreign investors shine a spotlight on Colombia’s real estate market. Many have suggested the Colombian real estate market is ideal for retirement homes and investment properties.

 

In the Caribbean – Bahamas

According to Global Property Guide, property prices have been stable in the Bahamas. Among the different types of properties surveyed by GPG, inland condominiums on Nassau have the highest average yields at around 8%, with yields of around 7% for Nassau condominiums along the water. It has become an attractive destination for property investors because the Commonwealth of the Bahamas has tax laws and regulations that help to make it appealing. It has steadily been ranked as the top country to invest in in the Caribbean by GPG for its favourable property ownership laws for foreigners.

 

This article first appeared on ZUU online.

ZUU online is an Asia-based financial education online portal. Founded in Japan by Kazumasa Tomita, a former private banker at Nomura Securities, the portal seeks to fill the information gap between institutional research houses and the private investor.

 

(By Natalie Tan)

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