Beautiful beach at Caribbean Providenciales island in Turks and Caicos
Investors and second homebuyers should have these four international property markets on their radar at the start of 2024. These markets have been home runs for capital gains while also earning decent rental investment income.
They’re the top performers in a study produced by my team at Global Property Advisor. Using price per square foot (based on the average cost of a two-bedroom, two-bathroom apartment with an ocean view in each place), the team has monitored price performance, demand, and momentum in 28 property markets around the globe.
Let’s take a closer look at the top four performers, where momentum is strong but there’s still room to grow.
#4 – Puerto Vallarta, Mexico
A charming beach with turquoise waters and clear sand.
- Cost per square foot: $532
- Three-year price change: 66.2% increase
Puerto Vallarta has been a top resort market since 1963, when Richard Burton, Ava Gardner, and Tennessee Williams put it on the map during the filming of “The Night of the Iguana.”
It commands a strong per-square-foot price because it’s a branded city. In other words, it’s synonymous with the beach, natural beauty, and fun in the sun. That public image makes it an easy place for property investors to rent or resell.
Three other factors combine to keep investors in Puerto Vallarta’s property market for the long haul. First, most homes offer ocean and sunset views because of the elevation that rises as you go inland from the beaches.
Second, Puerto Vallarta is simple to reach from the United States and Canada with dozens of direct flights, and third, it offers a wealth of residential options, including neighborhoods of different characters with solid infrastructure.
#3 – Providenciales, Turks And Caicos
Turks & Caicos
- Cost per square foot: $1,056
- Three-year price change: 77.1% increase
Providenciales is an upscale market with one of the highest costs of entry in the world at $1,056 per square foot. Nonetheless, it offers strong total returns, placing it among the top performers in Global Property Advisor’s study.
Stunning natural beauty provides Providenciales’s market appeal. This is the Caribbean at its best, with white-sand beaches, electric blue waters, and spectacular coral reefs. Onshore, there are luxury resorts, fine dining, and other high-end amenities.
Because of its small population of about 25,000 people, Providenciales has a more refined, relaxed feel than bustling resorts like Puerto Vallarta. Best of all, it’s easy to reach from the United States and Canada, at about a two-hour flight from Miami.
Turks and Caicos also offers a favorable tax picture, with no income tax, capital gains tax, inheritance/estate tax, or sales tax. The capital gains or income that you make here will be yours to keep, making this an attractive market for property investors.
#2 – Mazatlán, Mexico
Beach and waterfront promenade in Mazatlan, Sinaloa, Mexico at twilight blue hour.
- Cost per square foot: $295
- Three-year price change: 77.3% increase
Mazatlán is just 200 miles north of famous Puerto Vallarta, yet it has long been overlooked by investors and property homebuyers.
This is changing, however. More people have taken notice of Mazatlán’s long, sandy beaches, lined by one of the longest boardwalks in the world, its sprawling historic center, and its wide variety of entertainment options, from restaurants and shopping to theater and live music.
Plus, a new highway that connects Mazatlán to big cities in Mexico’s interior (like Durango, Torreón, and Monterrey) was recently completed, which opened it up to new tourist markets.
Global Property Advisor has watched Mazatlán’s property prices rise alongside its popularity. Specific projects recommended through this advisory service have seen as much as an 118% appreciation since 2020.
Inventory is currently low in Mazatlán, but there’s room for investment growth, with more than a dozen condo projects underway on the waterfront.
#1 – Iskele Long Beach, Northern Cyprus
Coastline of İskele Long Beach in North Cyprus on sunny day
- Cost per square foot: $241
- Three-year price change: 100% increase
With a 100% increase in average property costs over the past three years, Iskele Long Beach stands out among the 28 property markets surveyed by Global Property Advisor.
Found in the eastern part of Northern Cyprus (a region and de facto state of the Republic of Cyprus), Iskele boasts a 1.5-mile beach. It’s bathed in sunshine year-round and lapped by the balmy waters of the Mediterranean Sea.
On top of a beautiful beach, Iskele is close to charming small towns like Bafra and Bogaz, and it commands strong tourism numbers with its restaurants, clubs, and casinos. It’s a safe, low-crime environment with a low cost of living.
When Global Property Advisor first recommended this market, it was possible to buy new beach condos for less than $60,000. Despite the 100% price jump, property still remains amazingly affordable—especially in comparison to other Mediterranean resorts.
Property trades in British pounds in this market, which, with the U.S. dollar’s strength against the pound, enhances the bargain for dollar holders.
At $241 per square foot, the average property investor can still reasonably afford a foothold in Iskele Long Beach. It’s only a matter of time, however, until prices in this market outlier rise to meet the approximate level of prices in its Mediterranean peers.