Against the backdrop of growing global asset allocation demand, overseas real estate investment is gradually becoming an important option for high-net-worth individuals to diversify risk and achieve asset preservation and appreciation. However, this investment area is not “guaranteed to make money”; returns and risks coexist, requiring comprehensive judgment based on market cycles, policy environment, and personal financial planning.
From a return perspective, the attractiveness of overseas real estate lies primarily in its long-term appreciation potential. Taking the European market as an example, the return on investment in core city commercial real estate is projected to reach 4.8% in 2025, an increase of 0.3 percentage points from the previous year. Specifically, office rents in the City of London saw an annual increase of 3.5%, while logistics real estate yields in Frankfurt remained stable at 5.2%. This growth is driven by population inflows, industrial upgrading, and policy support—for example, Germany’s “Industry 4.0” initiative’s subsidies for real estate surrounding smart factories directly boosted regional asset values. Furthermore, rental income is also a significant source of revenue; residential occupancy rates in Paris’s core areas exceed 95%, and student apartments in Madrid’s northern new district can achieve annual returns of up to 6.5%, providing investors with stable cash flow. Some markets also generate additional revenue through policy incentives. For example, after the adjustment of Portugal’s Golden Visa policy, properties meeting energy efficiency standards can enjoy tax benefits, further enhancing the return on investment.
However, the complexity of overseas real estate investment is also reflected in the risks. Policy changes are the primary challenge. Different countries have significantly different restrictions on foreign home purchases. For instance, one country stipulates that non-citizens can only purchase one owner-occupied property and must hold it for five years before selling; another country levies high stamp duties on foreign buyers, directly squeezing profit margins. Exchange rate fluctuations are also significant. If investors settle in their local currency, the asset value may shrink by more than 10% due to currency depreciation. Market cycle risks manifest as increased regional differentiation. Although the US housing market shows signs of a moderate recovery in 2025, secondary markets such as Florida have seen significantly lower price increases than core areas like California and New York due to decreased investment demand. Furthermore, hidden costs such as differences in legal systems, tax compliance costs, and property maintenance fees can also erode actual returns. For example, one country’s property tax rate is 1.5% of the property value and must be paid annually; failure to pay on time may result in the property being auctioned.
Faced with both opportunities and challenges, investors need to construct a balanced strategy of “localization + globalization.” On the one hand, they should prioritize markets with sound economic fundamentals and high legal transparency, such as core European countries or parts of North America, where policy continuity is strong and asset liquidity is high. On the other hand, they should reduce risk through investment diversification, for example, allocating 30% of funds to short-term rental properties (such as student accommodation) and 70% to long-term residential or commercial real estate to balance cash flow and appreciation potential. Simultaneously, they should leverage professional institutions to mitigate risk, including engaging local lawyers to review purchase contracts, utilizing REITs to lower the threshold for direct investment, or simplifying transaction processes through digital identity verification systems. It is worth noting that green building is becoming a new growth point for value; properties that meet DGNB or LEED certification have the potential to increase their long-term value by up to 25% and can enjoy preferential policies.
For those interested in exploring overseas real estate investment, attending real estate expos is an important and efficient way to obtain information. These expos bring together high-quality projects from around the world, providing a one-stop service from market analysis to legal advice, helping investors to intuitively compare investment returns, policy incentives, and risk levels in different regions. By engaging directly with developers, agents, and policymakers, investors can more accurately match their needs and avoid decision-making errors caused by information asymmetry. In an era of globalized asset allocation, rationally assessing the returns and risks of overseas real estate investment is crucial to capturing long-term value in a volatile market.
