Expert Advice

Baja California is at the start of a 30-year growth phase, while lesser-known areas of central and northern Portugal are on the brink of a real estate boom. High-end properties in walkable beach cities in France, Spain, and Mexico are in soaring demand. These trends are highlighted in Real Estate Trend Alert’s (RETA) first International Real Estate Index. Fifteen years ago, I founded RETA to help like-minded investors pool their buying power and profit from the best real estate deals worldwide. Over the past decade and a half, my team and I have explored world-class destinations like Cabo San Lucas, Mexico’s Riviera Maya, Portugal’s Algarve region, Spain’s Costa del Sol, and the south of France, identifying prime markets and opportunities. We’re always on the lookout for emerging hotspots. In the past year alone, we’ve scouted Portugal’s Azores islands, Montenegro, the eastern coast of the Dominican Republic, and Spain’s “green zones.” Our aim is to stay ahead of market trends, providing our members with invaluable insights and opportunities.

Introducing the RETA International Real Estate Index

Most year-end lists and rankings are put together by writers who lack firsthand market experience, often focusing on major economic centers like San Francisco, London, or Singapore, which have high entry and holding costs and low rental yields. Our approach is different. The RETA index considers destinations that excel in value for money, growth potential, rental appeal, and quality of life. We ranked destinations based on ten categories to create our top 20 list. Each market has been personally investigated by my team or me, and we’ve accurately predicted their rise in many cases.

Top Five Real Estate Markets for 2024

1. Cabo San Lucas, Mexico: Cabo excels in every category, from climate and quality of life to international appeal. It offers luxury resorts, high-end restaurants, world-class marinas, championship golf courses, and a booming real estate market. Luxury condos in Cabo rent for $3,500 per month or more, with strong potential for capital appreciation. 2. Caminha, Portugal: This charming, lesser-known town on Portugal’s northern border with Spain offers exceptional value. With beautiful beaches and verdant countryside, Caminha is poised for growth as wealthier visitors discover its appeal. Properties are still affordable, making it an excellent investment opportunity. 3. Riviera Maya, Mexico: This Caribbean coastline is experiencing a massive economic boom, attracting high-end tourists and remote workers. Playa del Carmen and Tulum are particularly popular, with prices rising due to limited developable land and increasing demand. 4. Estepona, Spain: Estepona is the next hotspot on Spain’s Costa del Sol, benefiting from the region’s amazing climate, stunning beaches, and rich cultural heritage. Prices are rising, but there are still opportunities to buy ahead of the Path of Progress. 5. Rocha, Uruguay: Known for its unspoiled nature and modern infrastructure, Rocha is becoming a sought-after destination. With 110 miles of pristine beaches and recent infrastructure improvements, this market is in the early stages of a multi-decade growth phase.

Key Factors in the RETA Index

Destinations were judged across ten categories, each contributing to the overall ranking. These categories include:

• Relative Value: Exceptional value compared to major US and Canadian markets.
• Climate: Warm, sunny climates with minimal humidity.
• International Appeal: Popularity among tourists, expats, and digital nomads.
• Path of Progress Indicator: Infrastructure developments that enhance accessibility and desirability.
• Income Potential: Rental income relative to investment.
• Quality of Life: Availability of amenities, natural attractions, and overall environment.
• Ease and Cost of Transaction: Ease and cost of purchasing property for foreign buyers.
• Stability: Political, economic, and social stability.
• Availability of Bank Finance: Access to mortgages for foreign buyers.
• Holding Costs: Costs associated with owning property, such as taxes and insurance.

Conclusion

RETA’s first International Real Estate Index offers a comprehensive guide to the best real estate markets for 2024. By considering value, growth potential, rental appeal, and quality of life, we provide investors with unparalleled insights into the top global destinations. Whether you’re looking to invest in Baja California, Portugal, Mexico, Spain, or Uruguay, our index highlights the markets with the most promising opportunities for growth and return on investment