As property investment becomes more challenging in the UK and property prices continue to rise, many British property investors may be considering whether expanding their portfolios to invest in international property would be profitable. A new study has unveiled intriguing insights into the property markets of ten popular expat destinations, revealing opportunities for substantial savings over UK prices and highlighting countries that demand a premium. Understanding these dynamics can help investors make informed decisions, so let’s jump right into the numbers to see where investors can get more bang for their buck compared to UK prices!
Affordable international destinations
Out of the 10 locations selected, the research has revealed that South Africa is the most affordable destination for UK investors. With a rich history of British ties and a thriving expat community of over 130,000, South Africa offers Brits an attractive average house price of just £43,970, representing a staggering 84.3 per cent saving compared to UK property prices. The nation’s affordability alongside its scenic beauty and diverse culture, makes it an attractive option for budget-conscious investors.
3-bedroom apartment with sea views Ramsgate South Africa marketed by RE/MAX Coast and Country – £57,000
This 3-bedroom, 3-bathroom apartment is situated in Ramsgate, a village on the south coast of the KwaZulu-Natal region of South Africa. The property, which boasts stunning ocean, lagoon and beach views is located near restaurants and shops and is just a few minutes’ walk from the Blue Flag beach of Ramsgate, which is a popular area for tourists. The apartment also boasts 2 lock-up garages, the use of a communal pool, BBQ facilities, a clubhouse, a children’s play area, backup water tanks and a borehole (in case of emergency water shortages) and a price tag of just 1,395,000 Rand (c. £57,000).
Italy, known for its picturesque landscapes and vibrant lifestyle, also presents a compelling case for investment. The average house price here is 54.3 per cent lower than in the UK (at £128.144) allowing investors and the 65,000-person-strong expat community to indulge in the Mediterranean lifestyle without breaking the bank.
3-bedroom village house with rooftop views Chiaramonte Sardinia – £127,000
For example, for sale for £127,000 just below the average property price in Italy, is this 3-bedroom village house in the ancient village of Chiaramonti, in Sassari, Sardinia with a 27 sq. metre terrace offering stunning views spectacular views of the ruins of Castle Doria and the surrounding countryside and village.
Spain, a perennial favourite among British expats, is the next most affordable. Home to over 300,000 British expats, Spain boasts an average property price of £172,452, a 38.6 per cent saving compared to the UK. The country’s sunny climate and welcoming communities make it a reliable choice for those looking to relocate or invest.
2-bedroom apartment with pool views on Mar Menor Golf Resort
This 2-bedroom apartment with pool views at Mar Menor Golf Resort golf resort is just 12.5 miles from Murcia-Corvera International Airport. It is listed for sale for 175,000 Euros, around £149,000, some £20,000 cheaper than the country’s average property price. The resort boasts an 18-hole golf course designed by Jack Nicklaus, a 5 Grand Luxury Intercontinental Hotel, as well as sports facilities, a supermarket, bars, restaurants, a gym, a pool and a spa. The perfect holiday let for golfing and sport-loving holidaymakers.
Premium international destinations
On the flip side, several expat destinations command higher property prices than the UK. Australia tops the list, with an estimated 1.3 million British expats living Down Under. However, the average house price in Australia is £490,681, a substantial 74.8 per cent more than in the UK. This steep price tag is a testament to the country’s high quality of life, economic stability and attractive outdoorsy lifestyle.
3-bedroom lakeside property Russell Island
Located on a 1060m² plot, this contemporary waterfront property on Russell Island, which is off the coast of Brisbane is an example of an Australian property priced at £417,911, a little under the average property prices for the country. With three bedrooms and two bathrooms, the house boasts a contemporary open-plan design and breathtaking panoramic water views. The interior features beautiful timber flooring, a sleek white-on-white kitchen and spacious living and dining areas that all capitalise on the waterside vistas.
New Zealand follows closely behind Australia, with property prices an average of £444,000, 58.5 per cent higher than in the UK. The country’s pristine environment and safe and friendly communities justify the higher costs for the 270,000 expats.
Taking the spot as the third most expensive destination investors would pay a premium over UK property prices is Canada. The territory, which is home to over half a million British expats, also demands a premium with prices 45 per cent higher (£406,000) than in the UK. Canada’s strong economy, and diverse cultural landscape continue to draw investors despite the higher costs.
Germany and France offer more moderate premiums, with property prices 32.7 (£372,000) and 8 per cent (£303,000) higher than in the UK respectively. Germany’s robust economy and France’s Mediterranean lifestyle maintain their positions as desirable yet somewhat pricier expat destinations.
Ireland, which is host to over 290,000 expats, is the next most expensive with average property prices just 1.5 per cent more expensive than the UK. Interestingly, the USA, hosting over 700,000 British expats, has the most comparable property market to the UK. The average house price is just 0.6 per cent higher, although regional variations can significantly affect affordability.
Verona Frankish, CEO of Yopa, which conducted the research noted the increasing trend of young professionals, particularly those capable of remote work, exploring overseas options due to the UK’s high property costs. “If the UK market doesn’t become more accessible to young buyers, we can expect more and more of them to move away, taking their skills, talents, and disposable income away from the UK economy.”
Are you seeking affordability in South Africa, Italy and Spain or eyeing premium locations like Australia, New Zealand and Canada? Let us know.
