Top 10 Places To Buy a Vacation Home in The World

While buying a vacation home is definitely about finding a place to relax whenever and however long you feel like, it should also be about letting your money work for you by investing smartly. Many popular locations out there might seem like no-brainers, but you should also consider factors such as quality of life, your preferred vacation type, bureaucracy, and the lot.

You’re searching for your home away from home, after all, so you should be pretty diligent. To help you in your search, we conducted exhaustive research and came up with a list of 10 places you’ll find to be both solid investment opportunities and wonderful places to unwind after a hard-working year.

Reta's International Real Estate Index 2024 rankings provide valuable insights into global property markets, highlighting key destinations for investment and residential living. This index evaluates various factors such as market stability, affordability, quality of life, and potential for future growth, enabling buyers and investors to make informed decisions.

1. Hvar, Croatia 

Set off the stunning Dalmatian coast, Europe’s sunniest island will surely charm you into wanting to stay forever. And in fact, you just might; Hvar also presents lucrative real estate opportunities. 

If you’re looking to get a place where you and your family can enjoy summer vacations, this island boasts crystal-clear waters, beaches surrounded by pine tree forests and more sunny days than any other place in Croatia. Thanks to its position at the very center of the main nautical pathways in the Adriatic Sea, Hvar is a tapestry of many different cultures that shaped it throughout history. Hvar’s architecture in particular echoes its Venetian heritage. 

Given the island’s popularity with foreign homebuyers, you should fit right in with the vibrant ex-pat community, whether you’re there just for vacation or long term. As a foreigner, you also have the opportunity to secure a mortgage in Croatia, making the process of buying property even more accessible.

The property options in Hvar include renovated old stone houses to modern luxury villas, appealing to different budgets, tastes, and needs. Prices per square meter for apartments start at around $2,000 in less popular areas and rise significantly in more sought-after locations.

Limited supply and high tourist interest enhance property value and investors can expect an annual ROI of 5-10% for prime locations, such as Hvar Town. For those looking to rent out their properties, the high season promises excellent rental rates. What’s important is that property values in Hvar have consistently shown an upward trend in recent years and show no signs of stopping.

2. Chiang Mai, Thailand

Under the Thai Land Code Act, foreign nationals technically aren’t allowed to buy or own land. What they can do, however, is own buildings and constructions. They can also lease land for a period of up to 30 years with a possibility of renewal for another 30. 

Now that we have the legal aspect out of the way, we can focus on Thailand’s breathtaking natural beauty, ancient culture and world-famous cuisine, all of which make it one of the most popular tourist destinations in the world. 

If you’re looking to make Thailand your home away from home, look into Chiang Mai, a city nestled in the northern, cooler part of the country. It offers a range of property options, including modern condos, traditional houses, and luxurious villas. It’s more cost-effective compared to Bangkok and Phuket, but it’s important to act quickly since the prices have been steadily rising at a rate of 10-20% per year since 2010. 

As things are, the average price for a condo in Chiang Mai is $1,801 per square meter and $756 per square meter for a townhouse. Thanks to the consistent demand for rental property due to the city’s booming tourism, you’ll have no issue getting a return on your investment.

3. Algarve Region, Portugal 

According to the Portugal National Institute of Statistics, the figure at the end of 2023 showed that Algarve captured 26.4% of all overnight states in Portugal. It’s on track for even more growth in 2024, driven by a thriving tourism sector that generated a staggering €25 billion in revenue last year.

The average rental yield in this area is around 5.6%, which is encouraging for foreign investors. As a foreign national, you have the chance to obtain a mortgage in Portugal, which makes the property-buying process much more accessible.

This economic vitality enhances its appeal as a real estate hotspot, offering a variety of properties including low-maintenance apartments, spacious villas with private amenities, convenient townhouses, expansive rural properties, and opportunities for commercial investment in tourist-heavy areas.

Additionally, land plots are available for those wishing to build custom properties.

As for the lifestyle you can expect, the region is renowned for its world-class golf courses, luxurious resorts, and vibrant culinary scene, with an emphasis on seafood. You can enjoy cultural festivals and local markets that provide a taste of Algaervian life. 

4. Punta Cana, Dominican Republic

Who wouldn’t want a private paradise in the beautiful Caribbean? With property prices much lower than in the rest of the hotspots in the archipelago, Punta Cana shows quite a bit of capital appreciation potential. 

The Dominican Republic also offers favorable tax conditions for foreign investors, including exemptions from property tax for the first 15 years and no taxes on rental income for non-residents. The occupancy rate during peak seasons is as high as 80%, which ensures a robust return on investment if you plan to rent out the property. 

With its beaches, outdoor activities and the well-integrated ex-pat community, Punta Cana promises a vibrant lifestyle to foreign investors. 

5. Abruzzo, Italy

Abruzzo, Italy, is an enchanting region where the sea meets the mountains, offering the best of both worlds for vacation home seekers. Known for its affordability, Abruzzo's real estate market is compelling, with properties averaging around $1,000 per square meter, considerably less than in more tourist-saturated areas of Italy. 

This region promises a tranquil lifestyle amidst ancient hilltop villages, sprawling vineyards, and pristine national parks. Its proximity to Rome enhances its appeal, providing easy access to urban amenities while retaining a serene, rural charm. As a foreigner, you can also obtain a mortgage in Italy, which makes the process of buying property much more convenient.

The local cuisine, characterized by fresh seafood and homemade pasta, along with celebrated local wines like Montepulciano d’Abruzzo, enriches the living experience.

The region is also committed to preserving its natural and architectural heritage, with well-maintained national parks and restoration efforts in its ancient towns. If you wish to live here, the Italy Golden Visa could be a helpful option for you.

6. Borovets, Bulgaria 

The eyes of winter sports enthusiasts always seem to be turned towards the Alps and the Dolomites. However, your wallet might be grateful if you redirected your attention towards Borovets, Bulgaria.

A gem for homebuyers looking for a winter sports paradise, Borovets offers property at a fraction of the cost of more famous European ski resorts. With property prices around $750 per square meter, Borovets presents an affordable entry into the booming market of Eastern Europe.

Another reason to consider Bulgaria is its favorable tax regime, including a flat 10% Income tax rate. 

The town has well-maintained ski facilities suitable for both beginners and experienced skiers, ensuring a long rental season from late November to early April. Summer transforms the landscape, offering hiking, mountain biking, and fishing, so if your long-term goal is to rent out the property, this will extend the rental income period. 

You’ll also be able to enjoy local culture, thanks to the town’s traditional music festivals and culinary delights. 

Related: What to Look for When Buying a House - Everything you need to know

7. Crete, Greece

Despite it being by far the largest of the Greek islands, the tourist preference for Mykonos and Santorini makes Crete a true hidden gem for foreign homebuyers. Its famous beaches, like the pink-sand Elafonisi, along with its rich and ancient history mean that your vacations will be as diverse as you want them to be, whether you like to relax or explore museums. 

Despite its beauty and definite appeal to tourists, it remains impervious to commercialization and huge crowds, so you can enjoy peace and quiet. The sheer size of the island will let you choose the exact amount of human contact you wish to have.

However, its low-key popularity among the Greek islands doesn’t mean it doesn’t offer robust investment opportunities. Chania with its charming Venetian old town can be particularly lucrative if you’re looking to rent out your vacation home, but if you’re more about a relaxing seaside lifestyle, look into Sitia, Makrigialos, and Lerapetra.

The prices of property in Crete are all over the map; more modestly priced properties can be found some distance from the main tourist areas and start at approximately $1,200 per square meter. You could see rental yields going from 5% to 7%. 

Another reason Greece is attractive to foreign investors is its Greek Golden Visa program, the country’s residency-by-investment program. After purchasing a residential property or making another significant investment in the country, with the minimum being €250,000, non-EU citizens become eligible for residence.

8. Riviera Maya, Mexico

On top of the overwhelming tourist attention that Mexico as a vacation hotspot attracts, making it a lucrative place to earn money through rental income, its government is also making valiant efforts to make the country even more attractive to foreign homebuyers. 

For example, it has liberalized its investment laws, allowing foreign ownership in most sectors. Secondly, it offers visa options for retirees, including the Temporary Resident Visa and Permanent Resident Visa. 

Properties in this region enjoy significant appreciation, with annual increases in value ranging from 8% to 14%, and rental yields can be as high as 5% to 10% depending on location and property management, as the area benefits from a year-long tourist season.

Real estate prices in Riviera Maya are in the range of $2,500 per square meter in popular tourist areas such as Playa del Carmen and Tulum.

Should you decide to buy your home away from home in this area, know that you’ll enjoy a solid quality of life. International airports are close by, there’s a solid ex-pat community, and the natural beauties and the tropical climate might make you never want to leave.

9. Cayo, Belize

This area is renowned for its unspoiled natural wonders and its proximity to ancient Mayan ruins, like Caracol and Xunantunich, but Belize’s investor-friendly policies make it even more attractive to foreign homebuyers. 

For one, Belize has no capital gains tax. There are also Qualified Retired Persons incentives available.  

As a real estate opportunity, Cayo can mean solid value for money. The average price per square meter is $1,500, and if you choose to find tenants, you can expect rental yields of about 5% to 8%. 

As a vacation place, it’s relaxing, lush and green, with plenty of outdoor activities for those who love adventures and an active vacation. The official language English should further simplify your investment process. 

10. Costa de Sol, Spain 

If you want to put your money to work, Spain’s Sunshine Coast is the place. At the end of this year’s first quarter, the region’s price per square meter stood at €2,289, marking a 9.3% increase according to the same time last year. 

This growth is ahead of the other coastal regions in the country and speaks to the overall demand for this beautiful area. In Malaga, the average price for a second home stands at €3,700 per square meter, while Manilva and Marbella are even more steep at €4,000. 

These figures reflect the region’s status as a prime destination, a fact which shows no signs of changing. If you decide to rent during peak tourist seasons, you’ll see passive income like you wouldn’t believe. Also, Spain provides excellent opportunities for securing a mortgage.

Furthermore, the appeal of Costa de Sol lies in the easygoing style of life, its 320 sunny days and the well-developed infrastructure which will give you flexibility.

Take the Next Step

If you’re set on location for your second home abroad, the real work can begin. The process of buying foreign real estate has many moving parts and finding the right finance method is perhaps the most crucial.

If you feel a mortgage is the way to go, Kredium is there to make the process seamless. Our experts are here to find you the best deals and advise you every step of the way. We provide expert assistance with ITIN mortgage requirements and documentation.

Register today and we'll guide you through the entire process from application to mortgage payment.

Photo Credits | Pexels