With 2023 bringing more economic uncertainty, many investors are looking abroad for stable real estate markets that can still deliver good returns. Factors like population growth, affordability, economic outlook, and investment climate make some countries stand out over others. Canada remains an attractive destination with its openness to immigration fueling housing demand. Certain markets in Europe like Portugal and Ireland also present opportunities due to residency incentives and strong tourism. Emerging Southeast Asian countries are gaining interest as well among real estate investors who don’t mind taking on some more risk for higher yields. These and other key factors make Canada, Europe, and Southeast Asia potentially rewarding places to invest in real estate in 2023.
Canada’s housing demand remains resilient amid global uncertainties
Canada continues to be a top choice for real estate investors in 2023. Key cities like Toronto and Vancouver remain some of the most unaffordable housing markets globally. But Canada’s openness to immigration and steady economic growth even amid global downturns keep housing demand strong across the country. Given restrictions in other major immigrant destinations like the U.S. and U.K., Canada will likely continue attracting new residents at a rapid pace, fueling needs for both rental and purchase properties.
Certain European markets draw investor interest with residency incentives
Some European countries are actively trying to attract foreign real estate investors by offering residency and even citizenship incentives. Portugal’s Golden Visa program grants residency rights for buying real estate over a certain price threshold. With Portuguese real estate significantly cheaper than other Western European markets, the residency incentives make it particularly attractive to investors from outside the EU. Ireland, Greece, and Spain have similar programs. Though returns may be lower, the ability to secure an EU residency permit allows for unique lifestyle opportunities.
High-growth Southeast Asian markets provide yields despite risks
Many Southeast Asian markets like Thailand, Vietnam, and Indonesia are also garnering attention from real estate investors seeking higher returns outside of mature Western markets. Countries across the ASEAN region are experiencing rapid urbanization, a growing middle class, and increased tourism. While these high-growth economies provide opportunities for cash flow through rental properties and future capital gains, there are also greater legal and regulatory risks to consider.
For real estate investors seeking stable returns amid global uncertainty, Canada, select European markets like Portugal and Ireland, and emerging Southeast Asian countries all provide worthwhile opportunities in 2023 through their distinct combination of demand drivers, incentives, and growth outlooks.