Comparison of real estate markets in different regions

Comparison of real estate markets in different regions - Makebiz

Analyzing the economic outlook and regional characteristics, we looked at real estate investment options around the world. 

Let’s turn our attention to the island of Bali in Indonesia, which has a population of 4.4 million people and a GDP that has grown steadily by 5% since 2021. The region’s economy is based on agriculture, mining, engineering and tourism. It is important to note such pros of the market as a large return on investment of 10-12%, the ease of making transactions with only a passport and the possibility of obtaining a golden investor visa. However, there are also disadvantages: long-term rental real estate without the possibility of buying it, the lack of reliable developers, a large dependence of the market on tourism, climate factor and high interest rates with difficulties in obtaining a mortgage loan.

Thailand is home to about 72 million people, the economy is growing steadily at 3% per year, and the unemployment rate is below 1%. The region attracts investors with a simplified tax system, increasing demand for construction projects and low inflation.

However, there are important negative factors: the unstable political situation, the inability to acquire land ownership, the need to register a legal entity for transactions and high real estate prices for foreigners.

On the island of Cyprus, where the population is 920 thousand people and GDP growth is 5% outside of crises, the economy is based on tourism, pharmaceuticals and agriculture. However, it should be remembered that Cyprus is divided into a poor North and a rich South, with the former not recognized by the international community. The pros of the market can be called the possibility of obtaining residence permit and citizenship for investment. Among the minuses — restrictions on ownership of multiple properties, EU sanctions policy, the fall in the value of the euro, a low ROI of 4-5% and significant taxes on the purchase / sale of construction projects.

If we talk more about Northern Cyprus, there are 530 thousand people living here under heavy sanctions pressure and slow economic growth. The real estate market here is more stable due to the pegging of prices to the British pound. However, it is worth considering the legal risks associated with the disputed territorial situation and the recognition of property rights, as well as possible restrictions on access to certain markets and services.

Finally, consider the United Arab Emirates, with a population of 10.2 million people and stable economic growth of 5% per year. The UAE is characterized by many positive factors affecting the construction industry:

  • high GDP per capita; 
  • low inflation rate; 
  • simplified process of opening companies and accounts;
  • the possibility of obtaining a visa through investment;
  • low taxes; 
  • ROI of 7-10%;
  • government support for small businesses;
  • availability of large international real estate developers with high reputation.

So, the UAE offers the best conditions for a comfortable life, doing business, and is especially famous for its high profitability, stability and security when investing in real estate.

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