Given the unstable economic situation in Ukraine and the desire to have a safe place to relax or live permanently, Ukrainians who have the financial means to do so are increasingly investing in foreign real estate. The most popular destinations for such purchases, according to experts, are the countries of the Mediterranean region, in particular Turkey, Spain, as well as Bulgaria and Croatia, UNN writes.
"Buying real estate abroad has really become popular among people who have significant savings, especially in the context of the unstable political and economic situation," said Olena Sosedka, co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions.
In particular, according to experts, Ukrainians most often buy real estate in Turkey and Spain. The reasons are obvious: an attractive climate, developed infrastructure, and relatively low housing prices. Cities on the Mediterranean coast offer a wide range of apartments and villas at different prices. In addition, the procedure for buying real estate in Turkey, for example, is quite simple and fast for foreigners, which also contributes to the popularity of this destination. There are opportunities to invest in a house under construction and thus save money, or to buy ready-made housing. Prices for apartments here start from 36 thousand euros.
Prices for apartments in Spain are somewhat higher than in Turkey, but many Ukrainians are willing to invest in comfort and the opportunity to enjoy the Spanish lifestyle. Many choose this country for permanent residence or as an option for summer vacation. The cost of ready-made housing here starts from 50 thousand euros.
Bulgaria is another popular destination among Ukrainians. The Black Sea coast offers affordable housing prices, as well as a significant number of new residential complexes with all the necessary amenities. Sunny Beach, Golden Sands, and Varna have become popular destinations for real estate investment. Bulgaria is attractive not only for its prices, but also for its proximity to Ukraine and the possibility of quick access to the purchased housing.
Ukrainian citizens are less likely to invest in real estate in resort towns in Portugal, Croatia and exotic Bali.
Purchasing real estate abroad not only provides the owner with a place to relax, but also opens up opportunities for additional income. Many Ukrainians rent their homes to tourists, earning a steady income throughout the year. Renting out a home on the seaside can be especially profitable during the tourist season, when demand for rentals increases.
For example, on popular Ukrainian websites, you can find many offers for renting apartments in Turkey.
"If you don't live in the country permanently, you can use the services of management companies that will search for tenants, collect rent and maintain the property," advised finance expert Olena Sosedka.
In tourist-attractive regions, she says, you can rent out real estate by the day or for a short time, which can be more profitable than long-term leases.
At the same time, Sosiedka emphasized that it is important to know and comply with local laws and regulations regarding real estate leases. This includes registration of the lease agreement, tax obligations, and observance of tenants' rights.
In addition to resort towns, Ukrainians often buy housing in Poland and the Czech Republic. It is more likely to serve as an "alternate airfield" in the event of a large-scale invasion. And these countries are attractive because of their proximity to Ukraine.
Despite the attractiveness of investing in foreign real estate, it is important to consider possible risks, such as legal restrictions. In particular, some countries have restrictions on the purchase of real estate by foreigners or special tax rules for non-residents. For example, in Turkey and Bulgaria, foreigners are allowed to buy housing, but there are restrictions on the purchase of land plots. In Spain and Croatia, the procedures are more open, but taxes and fees can be significant. Before buying, you should familiarize yourself with the local legislation in detail and, if necessary, use the services of a lawyer.
You should not forget about possible currency fluctuations that may affect the value of real estate and rental income. For example, if the Ukrainian hryvnia depreciates against the euro or the dollar, buying real estate may become more expensive. This should be taken into account when planning a budget for the purchase and maintenance of real estate.
However, investing in real estate abroad can also have nice bonuses, in addition to additional passive income from renting out apartments. For example, according to Olena Sosiedka, some countries, such as Greece and Portugal, have a "golden visa" program that allows you to obtain a residence permit for real estate investments.
Also, according to her, Ukrainians are investing in real estate in Germany, as it is a country with a stable economy and a stable real estate market, especially in large cities such as Berlin and Munich.
Canada, for example, offers a stable real estate market and a high quality of life, especially in cities such as Toronto and Vancouver.
According to Sosiedka, the UAE, in particular Dubai and Abu Dhabi, offers a fast-growing real estate market, as well as the possibility of obtaining a residence permit.
"Investing in overseas real estate can be a reasonable step for those looking for safe and stable investment options, especially in the context of the unstable situation in Ukraine. However, it is important to thoroughly research the market, understand the legal and financial aspects, and be prepared for possible risks. Consulting with international real estate experts and financial advisors can help you make a more informed decision," Sosiedka summarized.