A Guide to Buying Property Abroad: Top Destinations and Trends for 2025
Your Dream Property Awaits: Understanding the Global Market
Dreaming of a sun-drenched villa in Spain, a chic apartment in Lisbon, or a tranquil retreat in the Greek islands? You’re not alone. A growing number of individuals are looking beyond their home borders to purchase property, whether for a holiday home, a retirement destination, or a savvy investment. The global real estate market is buzzing with opportunities, but navigating it requires careful planning and insight.
This guide explores the key trends driving the overseas property market and highlights the countries experiencing the most significant growth in foreign buyers. We’ll delve into the data to help you make an informed decision for your international property journey.
The Global Hotspots: Where Foreign Buyers Are Flocking
Several countries have emerged as frontrunners in the race to attract international property investors. Driven by a combination of lifestyle appeal, investment potential, and favorable government policies, these destinations are seeing a surge in demand. Here are the top five countries leading global real estate growth right now.
1. Portugal: The European Powerhouse
Portugal has firmly established itself as a darling of the European property market. Over the last five years, house prices have soared by an impressive 48%, a testament to its resilience and appeal. In 2025, real estate investment is projected to exceed €2.5 billion, an 8% increase from the previous year. Foreign buyers are a major force, accounting for a staggering 63.3% of property transactions in Lisbon and 54.2% in Porto. The country also offers attractive rental yields, averaging 5.2% in Lisbon and 6.6% in Porto, making it a strong contender for buy-to-let investors.
The combination of year-round sunshine, world-class cuisine, historic cities, and a welcoming expat community has made Portugal particularly popular with British and European buyers. The Algarve region, with its stunning coastline and golf courses, remains a perennial favorite for holiday homes.
2. Mexico: The Rising Star of the Americas
With its vibrant culture and stunning coastline, Mexico is experiencing a real estate boom. The market is forecast to reach a value of $5.74 trillion in 2025, with residential prices rising 8.8% in 2024 alone. The luxury development pipeline is particularly strong, boosted by major infrastructure projects like the Tren Maya railway, which has improved connectivity across the Yucatán Peninsula. Destinations like Tulum are seeing occupancy rates as high as 90% in peak season, attracting both tourists and a growing number of digital nomads.
Mexico ranks 11th globally for foreign direct investment, pulling in nearly $37 billion last year. The combination of affordability, lifestyle appeal, and strong rental demand makes it an increasingly attractive option for international buyers.
3. Greece: Ancient Beauty Meets Modern Investment
Greece is making a remarkable comeback, with its real estate market on a steep upward trajectory. Since 2017, apartment prices in some Athens neighborhoods have skyrocketed by 126%. The port city of Piraeus saw an incredible 28.9% price jump in a single year. This growth is fueled by a potent mix of tourism, urban regeneration projects, and attractive tax incentives for foreign investors. The luxury market is also thriving, with prices for high-end holiday homes increasing by 10% annually in 2025.
Greece’s appeal lies in its unique combination of ancient history, stunning islands, Mediterranean climate, and relatively affordable property prices compared to other Western European destinations. The Greek islands, particularly Crete, Santorini, and Mykonos, continue to attract buyers seeking holiday homes and rental investments.
4. Turkey: Affordability Meets Opportunity
Turkey offers a unique blend of affordability and high growth potential. Its Citizenship by Investment program has been a significant driver of the market, attracting over 60,000 applicants since its launch in 2016. Istanbul has recorded some of the highest property value growth globally, especially in the luxury sector. The popular coastal resort of Bodrum has also seen strong appreciation, with prices increasing 14% year-on-year in early 2025.
Turkey’s strategic location bridging Europe and Asia, combined with its rich cultural heritage and beautiful coastline, makes it an attractive proposition for both lifestyle buyers and investors seeking citizenship opportunities.
5. Saudi Arabia: The Vision 2030 Transformation
As part of its ambitious Vision 2030 plan, Saudi Arabia is rapidly transforming into a global business and tourism hub. This has ignited the real estate market, with property prices surging by 25-30% in just four years. In the capital, Riyadh, residential rents have been on a continuous upward trend for 31 consecutive months, increasing by 11.2% year-on-year as of September 2024.
While Saudi Arabia may not be a traditional choice for holiday home buyers, the massive government investment and economic transformation present unique opportunities for forward-thinking investors.
Top Choices for UK Buyers
While the global hotspots are enticing, UK buyers have their own established favorites. Proximity, familiarity, and lifestyle are key factors. Here’s a look at where Brits are buying property abroad, along with average costs.
| Country | Avg. Price/sqm (City Centre) | Avg. Price/sqm (Outside Centre) | Buying Fees |
|---|---|---|---|
| Spain | £3,107 | £1,951 | 7.5% – 14% |
| Portugal | £2,962 | £2,252 | 2.45% – 7% |
| France | £4,656 | £3,194 | 9.09% – 14.31% |
| Greece | £2,308 | £1,930 | 5.89% – 8.09% |
| Turkey | £1,519 | £858 | 7.60% – 7.70% |
| Ireland | £3,618 | £2,996 | 2.10% – 3.70% |
| Cyprus | £2,603 | £1,906 | 4% – 10% |
Spain remains the undisputed champion for British buyers, thanks to its sunny climate, accessible flights (just 2.5 hours from the UK), and reasonable property prices. Popular areas include the Costa del Sol (Marbella, Estepona) and the Costa Blanca (Torrevieja, Villamartin). Spain has topped the list for British expats, holiday home buyers, and investors for years, and it’s easy to see why.
Portugal offers excellent value, particularly when you consider the lower buying fees compared to Spain and France. The Algarve, Lisbon, and Porto are the most sought-after regions. Portugal’s combination of beautiful beaches, historic cities, excellent food and wine, and a welcoming expat community makes it an ideal choice.
France may be more expensive, but it remains popular for its proximity to the UK, world-class cuisine, and diverse regions from the Alps to the Riviera. Popular areas for UK buyers include Nice, the Dordogne, and Provence.
Key Considerations Before You Buy
Buying property abroad is a major financial commitment and a complex process. Before you take the plunge, it’s crucial to do your homework and seek professional advice. Here are the essential factors to consider.
Legal and Tax Implications: Each country has its own rules for foreign property ownership, including property taxes, capital gains taxes, and inheritance laws. What may seem straightforward in the UK can be vastly different abroad. Always seek independent legal and financial advice from experts who specialize in the country you’re interested in. A local lawyer can help you navigate the legal system, conduct due diligence on the property, and ensure the transaction is completed correctly.
Currency Exchange: Fluctuations in exchange rates can significantly impact the cost of your property and your ongoing expenses. If you’re buying a property worth €300,000 and the pound weakens by just 5% against the euro, you could end up paying an extra £15,000. Using a specialist FX provider like Mayfair FX can help you secure better exchange rates than high-street banks and manage your currency risk with tools like forward contracts, which allow you to lock in an exchange rate for a future date.
Residency and Visas: If you plan to live in your new property, you’ll need to understand the visa and residency requirements. Some countries offer attractive residency-by-investment programs, such as Portugal’s Golden Visa or Greece’s Golden Visa scheme. Post-Brexit, UK citizens need to be aware of the 90-day rule for staying in Schengen countries, which limits non-residents to 90 days in any 180-day period.
Financing Your Purchase: Will you be paying cash, or do you need a mortgage? Getting a mortgage as a foreigner can be more challenging and expensive than in your home country. Interest rates may be higher, and lenders may require larger deposits. Some buyers choose to remortgage their UK property to release equity for an overseas purchase.
Ongoing Costs: Don’t forget to factor in the ongoing costs of property ownership, including property taxes, utilities, insurance, maintenance, and community fees (common in apartment complexes and gated developments). If you’re buying a holiday home that will be empty for part of the year, you’ll also need to consider property management services.
Rental Potential: If you’re buying as an investment or want to offset costs by renting out your property when you’re not using it, research the local rental market carefully. What are the occupancy rates? What rental income can you realistically expect? Are there any restrictions on short-term rentals? Some cities have introduced strict regulations on platforms like Airbnb.
The Role of Currency Exchange in Your Property Purchase
One of the most overlooked aspects of buying property abroad is the impact of currency exchange. Whether you’re making a one-off payment or multiple payments over time, the exchange rate you receive can make a significant difference to the final cost.
High-street banks typically add a margin of 2-5% to the mid-market exchange rate, which can cost you thousands of pounds on a property purchase. For example, on a €300,000 property purchase, a 3% unfavorable exchange rate could cost you an extra £7,500 compared to using a specialist provider.
Specialist FX providers like Mayfair FX offer several advantages:
- Better Exchange Rates: Access to wholesale currency markets means tighter spreads and more competitive rates.
- Forward Contracts: Lock in an exchange rate for up to two years, protecting you from adverse currency movements.
- Limit Orders: Set your target exchange rate, and the provider will automatically execute the transaction when the market reaches your desired level.
- Expert Guidance: Dedicated account managers can provide insights into currency markets and help you develop a strategy for your international payments.
- Transparency: Clear, upfront pricing with no hidden fees.
Making Your Dream a Reality
Buying property abroad can be one of life’s most rewarding experiences, offering a lifestyle change, a sound investment, or both. The key to success is thorough research, professional advice, and careful financial planning. By understanding the markets, the legal requirements, and the financial implications, you can navigate the process with confidence.
Whether you’re drawn to the sun-soaked beaches of the Mediterranean, the vibrant culture of Mexico, or the historic charm of Portugal, there’s never been a better time to explore the opportunities that international property ownership can offer.
If you would like to discuss how Mayfair FX can help you manage your currency exchange for your overseas property purchase, please get in touch:
Call – 0203 66 77 345
Email – team@mayfairfx.com