In this article we discuss the 5 best countries to invest in real estate in 2021. If you want to read our detailed analysis of the real estate industry, go directly to the 20 Best Countries to Invest in Real Estate in 2021.
5. Norway
Norway is a scandinavian country. The country has an average real estate growth rate of 7.2% based on data from the year 1993 to 2021. The country is also an advanced economy with a high annual household income. Legal, social and political institutions in the country are well performing, providing a secure atmosphere for real estate investment.
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4. Sweden
Another Scandinavian country to make it in the list is Sweden. The country has a very lucrative market for real estate. Essentially, there are a lot of features this country has that are favorable to its real estate sector. A high income population, A decent GDP size, Social net, demand and an urbanized population. The country ranks 4th in our list of the best countries to invest in real estate in 2021.
The country has a whooping 7.5% average annual real estate growth rate. It’s one of the few countries with the lowest mortgage rates, increasing demand in the residential and commercial real estate sector. The country also has one of the best positions in the world for its legal, social, financial and political institutions virtually guaranteeing a return on investment in sectors like real estate.
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3. Iceland
Iceland is another Scandinavian country located in the Arctic circle. The country has an average percentage increase of real estate value of 7.4% from the year 2001 to 2021. Iceland is a developed economy with a high level of economic freedom. Its GDP per Capita is higher than the global average and stood at $59,634 for the year 2020. The country has well established social, political and legal institutions that ensure market stability. Mortgage rate in the country stands at 3.20%, marginally lower than the average mortgage rate around the world.
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2. China
China is one of the fastest growing countries in the world and its the 2nd largest economy in the world behind the US with a global GDP share of 15%. The country has pulled a major chunk of its population out of poverty with rapid development in a span of just 42 years. Such rapid economic and human development has caused its real estate prices to shoot up. Its average yearly real estate growth rate stands at 8% based on data from 22 years up till 2021.
Additionally, Chinese economy is significantly controlled, meaning that the market is not exactly free which on the bright side for an investor, ensures less volatility. Interest rate on the other hand however, is somewhat high which was increased by authorities to discourage a housing bubble as demand for real estate soared in the country.
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1. Turkey
Turkey is a country located at the gateway of Europe and Asia. It’s an emerging economy with lots of competitive sectors that are competing at the world stage. The country is the most lucrative market for real estate investment with a whooping 11% annual average real estate growth rate. The social, political and legal institutions in Turkey are relatively stronger and more stable than a lot of other developing countries.
The country is well on its way to a developmental summit and so are its economic sectors. This makes it an ideal target for real estate investment as gains seem promising.
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