Investing in Real Estate Abroad: Revving’s Choices
The Opportunity to Diversify Your Real Estate Portfolio with International Investments
The ability to diversify a real estate portfolio through investments abroad is a topic of growing interest for those looking to balance return and risk in emerging markets.
In this interview, Ruggiero di Luggo and Mauro Ramirez discuss the strategic choices of Revving, highlighting the advantages of an international portfolio and explaining why the company is focusing on expanding its activities outside Italy.
This in-depth analysis not only provides a detailed look at opportunities in markets like Albania, Oman, and Costa Rica, but also examines the economic and fiscal dynamics that make these countries particularly attractive for foreign investors. Revving shares its expertise in selecting robust markets driven by incentive policies and growing infrastructures, showing why diversifying internationally is an opportunity to achieve secure and sustainable returns.
Why is REVVING Expanding Its Activities Abroad?
Our international expansion stems from the desire to capitalize on the unique opportunities offered by emerging markets, in countries where the real estate sector demonstrates solid growth supported by favorable economic and fiscal policies for foreign investments.
The presence of relatively low costs, a growing tourism infrastructure, and incentive regulations for investors allows us to build a diversified and profitable portfolio, addressing the needs of our clients who aim for secure returns in growing economies and risk diversification.
This expansion is not only a strategic move to increase financial returns but also part of our mission to develop and enhance long-term resources for our partners.
What Are the Most Promising Real Estate Markets?
In recent years, the real estate markets in Albania, Oman, and Costa Rica have captured the attention of international and institutional investors thanks to their favorable economic conditions and the growth of tourism and infrastructure. While each country has unique dynamics, these markets share some common traits that make them attractive for real estate investment, such as relatively low costs, advantageous fiscal policies, and investor-friendly regulations. This article examines the opportunities and risks characterizing these emerging markets in detail.
Albania: A Market with Sustained Growth
Albania has experienced a significant boom in the real estate sector, driven by solid economic growth and substantial reforms improving the business environment. According to the latest market analysis, the country’s GDP grew by 3.1% in 2024, with a further increase of 3.4% projected for 2025. Projections indicate a 15.2% economic growth over the next five years, creating a stable and improving context for the real estate market.
This growth is accompanied by a 32.4% increase in building permits compared to the previous year, signaling significant expansion in the construction sector, particularly in major cities like Tirana and Durres. However, a potential imbalance between supply and demand has emerged, with an increase in property supply that could lead to a short-term price decrease. The confidence of entrepreneurs and the Business Consumer Index (BCI) improved, rising from 14 to 17 over the past year, indicating positive sentiment among local investors.
In terms of returns, rental yields range from 3.0% to 5.7%, which, though modest, are competitive compared to other emerging markets. Furthermore, the growing population and a 16.4% increase in per capita GDP over the past five years are driving higher housing demand. Inflation remains low (1% forecast over the next five years), favoring price stability.
Despite these positive factors, uncertainties remain regarding the market’s heavy reliance on informal capital and a possible demand drop in 2025. Nevertheless, interest in new constructions and urban redevelopment projects continues to make the Albanian market an enticing opportunity for long-term investors.
Oman: Opportunities in a Growing Economy
Oman is rapidly emerging as one of the most promising real estate markets in the Persian Gulf, thanks to its economic diversification policy and government push toward developing the tourism and infrastructure sectors. The recent introduction of laws allowing foreigners to purchase property in designated areas has opened the market to a wide range of international investors.
The residential sector is experiencing strong growth, particularly in Muscat and Salalah, where the government has incentivized the development of new residential communities and tourist resorts. The commercial and office markets are also gaining traction, with demand for high-quality spaces increasing thanks to the growth of local SMEs and multinationals establishing operations in the country.
However, the Omani real estate market also presents some challenges. The volatility of gas and oil prices, on which the local economy heavily depends, could negatively affect the real estate sector, reducing spending capacity and the attractiveness of foreign investments. Additionally, the recent introduction of a 5% VAT (Value Added Tax) might slightly reduce real estate demand, increasing costs for local and international buyers.
Costa Rica: A Real Estate Paradise with Untapped Potential
Costa Rica is considered a haven for real estate investors due to its political stability, high quality of life, and expanding tourism sector. The country has adopted policies favoring property purchases by foreigners, with registration processes and property rights protection among the best in Latin America.
The main investment areas include the coastal regions of Guanacaste and Puntarenas, where the development of luxury resorts and residential projects is booming. Investors benefit from high rental yields thanks to a steady influx of tourists, along with a stable and favorable regulatory environment. However, there are still some infrastructure challenges in inland and rural areas, which could limit market development potential in certain regions.
Another strength of Costa Rica’s real estate market is sustainability. The country is among the world leaders in environmental policies, reflected in its real estate sector, where many projects follow eco-sustainability criteria. This approach has attracted a growing number of investors sensitive to ESG (Environmental, Social, Governance) issues, further strengthening Costa Rica’s reputation as a responsible investment destination.
What Advice Would You Give to Investors Considering Foreign Investments?
Although each market has its unique dynamics, investors must carefully evaluate factors such as economic stability, regulatory transparency, and long-term growth potential.
Albania, with its rapid economic development and growing real estate demand, represents a solid opportunity, although it is necessary to monitor demand fluctuations and the influence of informal capital. Oman, with its strategic location and favorable government policies, offers significant earning potential, particularly in the residential and commercial sectors, but presents risks linked to economic volatility. Finally, Costa Rica remains a benchmark for investments in luxury locations and sustainable projects, making it ideal for those seeking high returns and a stable investment context.
In conclusion, the expansion of real estate markets in Albania, Oman, and Costa Rica offers promising prospects for investors looking to ride the wave of these emerging markets, build a diversified international portfolio, and mitigate risks associated with local economies.
