Australian investors have increased purchases of overseas property by 65 percent over the past year, with transactions now surpassing $21 million, according to Melbourne-based Grit Property Group. The surge reflects a broader shift in investment strategy as buyers diversify beyond local markets.
Navin De Silva, founder of Grit, states that experienced investors are reassessing their exposure to the same economic conditions, lending policies, and property cycles following recent federal budget tax adjustments. The changes have prompted a stronger focus on international assets, where tax advantages and streamlined buying processes make foreign markets more attractive.
De Silva highlights Dubai’s government-led economic strategy, which aims to double output by 2033 through major infrastructure projects and targeted foreign-investment incentives. He notes that investors can achieve a 10 percent return over 10 years in the emirate, while U.S. multi-family apartment complexes also appeal due to their strong rental yields and lower tax burdens.
Gregory Ahrbeck, a property consultant, is expanding his offshore portfolio, explaining that positively geared properties have become scarce in Australia. In contrast, Dubai offers both established assets already yielding positive cash flow and new luxury one-bedroom units priced from around $400,000. The emirate’s regulated and transparent property market allows investors to monitor every financial transaction, according to local authorities.
Italy has also become a key destination for Australian buyers seeking alternative investments. Nikki Taylor, a former Sydney buyer’s agent, and Lou Pomponio, an ex-Melbourne developer, now assist Australians in acquiring holiday properties or development land in Italy. One notable project involves a rustic estate in Puglia, marketed for residential use or conversion into a boutique hotel.
Taylor attributes the rise in cross-border purchases to Australia’s escalating construction costs, which have pushed buyers toward more affordable international markets. Italy’s tax structure further enhances its appeal, with large land parcels eligible for registration as an azienda agricola—a tax-efficient agricultural business model capable of delivering yields exceeding 20 percent.
