With domestic prices squeezed by higher mortgage rates and lower rental yields in many parts of the UK, a growing number of British buyers are looking abroad, for lifestyle, for rental income, or simply to diversify beyond the domestic market. Here’s where that interest is currently concentrated, and what’s driving it.

Portugal

Portugal has remained one of the most consistently popular overseas markets for UK buyers for well over a decade, and 2026 is no exception. Lisbon and Porto continue to draw buyers looking for city living with strong long-term infrastructure, while the Algarve remains one of Europe’s most established second-home and retirement markets. It’s worth noting that Portugal’s residency-by-investment route linked directly to property purchase has changed significantly in recent years and no longer works the way it once did, so anyone buying with residency in mind should get current, specialist advice rather than relying on how the scheme used to operate.

Spain

Spain continues to attract UK buyers in large numbers, particularly along the Costa Blanca, where relatively affordable apartments combined with strong holiday-let demand keep the market busy. The appeal here is largely straightforward: an established expat community, a mature legal system for foreign buyers, and a well-worn path for UK nationals to navigate the purchase process, even outside the EU post-Brexit.

Greece

Greece continues to draw buyers looking for renovation opportunities and lifestyle purchases, particularly on islands such as Crete and Rhodes, where older properties remain available at relatively low entry prices. The appeal tends to be more lifestyle-driven than pure investment, buyers are often looking for a holiday base or eventual retirement property rather than chasing rental yield alone, though islands with strong tourism can still support solid holiday-let income.

Thailand

Thailand continues to attract UK buyers looking for affordability combined with lifestyle appeal, with Bangkok, Phuket, and Chiang Mai the most commonly cited locations. Foreign ownership rules in Thailand are more restrictive than in much of Europe, foreigners can generally only own condominium units outright, subject to quotas, rather than land or houses, so this is a market where understanding the legal structure matters more than in most European destinations.

What UK Buyers Should Consider Before Buying Abroad

Buying overseas comes with a different set of risks and practical considerations to buying at home. Currency exposure is one of the most significant, property values and rental income in a foreign currency mean returns can be affected by exchange rate movements as much as by the property market itself, which is why many overseas buyers use a specialist currency transfer service rather than a standard bank transfer for large payments. Legal frameworks, foreign ownership rules, and residency or citizenship schemes also vary significantly by country and change more frequently than many buyers expect, several markets covered here have seen meaningful rule changes in just the past few years. Getting independent legal advice in the destination country, rather than relying solely on a developer’s own team, is generally regarded as essential rather than optional.

The Bottom Line

Portugal, Spain, Greece, and Thailand each appeal to a different type of buyer, from lifestyle-driven island purchases to institutionally-backed investment markets, and the right choice depends heavily on whether the priority is rental income, long-term appreciation, or simply a place to spend part of the year. As with any overseas purchase, the details matter more than the headline appeal, and rules in this space shift often enough that current, destination-specific advice is worth the cost before committing.