There are many reasons you might consider buying real estate abroad, including the relative value compared to what you could get in the U.S., income potential, cultural appeal or better weather. Knowing where to buy is key, especially if value is your top priority.
Ronan McMahon’s latest Real Estate Trend Alert considered these factors and more to determine the top 20 places to buy real estate in 2024. Among those locales, five cities scored a perfect 10 out of 10 for relative value.
If you’re looking to buy real estate abroad this year, consider one of these cities that offers the best bang for your buck.
Caminha, Portugal
Caminha is a relatively unknown and charming town that boasts a beautiful Old Town surrounded by verdant countryside on one side and Atlantic beaches on the other.
“Real estate prices are a fraction of those in better-known locales such as Porto or the country’s Algarve coast,” Ronan McMahon said. “On a recent trip, properties listed for sale included a four-bedroom condo at the center of town with unobstructed views of the Minho River for just €140,000 ($152,383).”
While homes are very affordable now, McMahon anticipates prices will rise as Caminha rises in popularity.
“If you missed out on the Algarve or Silver Coast ground-floor opportunities, this is a place you should pay serious attention to,” he said. “The wealthier visitors and second-home owners from Northern Europe and North America aren’t coming yet, but I believe they will — and when they do, they’ll drive prices higher.”
Rocha, Uruguay
Punta del Este has long been the center of Uruguay’s luxury market, but as it surges in popularity, many real estate investors are looking for alternatives, like Rocha. Located about one-and-a-half hours east of Punta del Este, Rocha boasts unspoiled nature and the longest oceanfront coast in Uruguay, with 110 miles lined almost entirely with beaches.
While the city scores a perfect 10 for value now, McMahon expects prices will increase rapidly soon.
“Land along the immediate coast is already getting more expensive, especially if you’re looking to own a few acres of space,” he said.
Panama City
Panama City has a lot going for it — it has a booming economy and offers many top-of-the-line amenities, including trendy cafes, craft beer bars, Michelin-star restaurants and designer clothing boutiques. Although it’s a global center of trade and finance, Panama City still offers a great value for real estate investors.
“Property prices right now offer excellent value relative to other major world financial centers, but that’s unlikely to remain the case,” McMahon said.
Medellín, Colombia
Known as “The City of Eternal Spring,” Medellín boasts weather that is nearly perfect year-round. There’s plenty to do and see in the city, including cafes, theaters, museums, botanical parks and murals.
It’s also become a hot spot for digital nomads, so there is plenty of opportunity to rent out a second home there when you’re not using it. Yet despite this demand, real estate remains a great value.
“You can still own two-bedroom condos in prime locations from $100,000 or a three-bedroom penthouse for just over $200,000,” McMahon said.
Umbria, Italy
History lovers and food lovers will both find plenty to keep them satisfied in Umbria. It’s also centrally located, so it’s easy to get to other Italian destinations from there.
“Yet, because it’s landlocked, Umbria remains overlooked,” McMahon said. “It’s sometimes called ‘Tuscany without the tourists.’ This is reflected in its real estate prices.
“According to figures from December last year, prices in Tuscany average €2,482 ($2,701) per square meter. Yet in neighboring Umbria, prices are less than half this, averaging just €1,135 ($1,235) per square meter. That’s around €105 ($114) per square foot.”
McMahon considers this “an exceptional value.”
“I’ve seen 10-bed villas with swimming pools and gorgeous Italian views of the countryside listed in Umbria for less than €300,000 ($326,500),” he said. “This explains why Umbria is one of only five destinations on the index to score a perfect 10 in the relative value category.”