It’s an idea that has become more appealing for many Americans following recent events. In fact, in its Global Luxury 2024 study, Coldwell Banker found that around 40% of American respondents are interested in buying a home in another country within the following year.

With this data in mind, the Hearst publication House Beautiful has published an article on the 7 countries that are a smart real investment. And Portugal, perhaps unsurprisingly at this point, takes the top spot.

“This coastal European country is the latest trendy travel destination – and is quickly becoming a popular place to buy a second home,” writes the article's author, Lesley Rotchford.

The first reason, she describes, is that interest rates are lower in Europe than in the US, while the euro is lower than it has been in several years. Portugal, she says, is still cheaper than many other Western European countries.

Then there’s the housing shortage that, while also an issue in Portugal, makes property prohibitively expensive for many US buyers. For the Algarve, however, that knock-on effect means that the price of prime properties continues to soar.

So generally speaking, what are the benefits of buying in a foreign country? As well as providing a special place where families can gather for the holidays or summer breaks, says Rotchford, owning a home overseas also helps diversify your portfolio and make you less vulnerable to economic fluctuations in any one country.

But according to the article, the main benefit in buying international real estate is the increasing property value and the additional income it represents. “In other words, the beach house you buy in Portugal now might be worth double what you paid for it in a couple of years. And houses located in popular tourist destinations can bring in a steady stream of rental income.”

With a strong rental market in the Algarve, Lisbon and Porto, “even if you don’t want to use your house in Portugal (which in addition to its stunning beaches is known for its amazing food and friendly locals) for a few years, it’s still smart to buy now.”

This is true for anyone looking to buy a home in the Algarve, where the potential of buying to rent has made it one of the smartest investment choices for local or overseas buyers. For more information, get in touch with Algarve Home Sales.