Buying or renting property abroad is one of the most exciting and risky steps an expat can take. Whether you’re relocating for lifestyle, work, or investment, the property market is a minefield of hidden costs, inflated prices, and sellers who assume foreigners won’t do their homework. One of the most important skills to develop is learning how to spot when a property is overpriced.
Here’s how to protect your wallet and make smarter decisions.
1. Compare Local vs. Expat Prices
In many countries, property owners and agents charge foreigners more than locals. The assumption is simple: if you can afford to move abroad, you must have extra money.
How to check:
- Look at local-language property websites, not just English listings.
- Ask locals what they pay per square meter (rent or purchase).
- Join expat and local Facebook or WhatsApp housing groups to compare offers.
- If the expat version of the same apartment is 30–50% higher, you’re looking at an inflated price.
2. Price Per Square Meter
Every market has a rough price-per-square-meter range. If the property you’re viewing is significantly above that without justifiable extras like a prime location, new build quality, or amenities it’s overpriced.
Example:
In Lisbon, Portugal, mid-range apartments average around €4,500/m² in 2025. If you’re quoted €7,000/m² for an average neighborhood, you’re being upsold.
3. Red Flags in the Listing
Certain language signals can indicate inflated pricing:
- “Expat-friendly” or “foreigner-ready” often means the landlord expects to charge a premium.
- “Great for Airbnb” usually means they’ve calculated the price based on potential rental income, not actual market value.
- “Luxury” is often overused to check if it’s actually modern or just has a fresh coat of paint.
4. The “Too Many Extras” Trap
Some properties are priced higher because of bundled add-ons:
- Furnished with outdated furniture that doesn’t justify the price.
- Gym or pool access in a building where the facilities are poorly maintained.
- “Expedited paperwork” fees that you could handle yourself for far less.
- Always ask yourself;are you paying for true value, or for someone’s attempt to dress up a basic property?
5. Local Salary vs. Rent Ratio
A simple way to spot an overpriced rental is to compare it against local wages. If the average local income couldn’t possibly cover the rent, the property is targeting only foreigners.
Example:
If the average salary in Bogotá is $500/month and the landlord is asking $1,200/month for a one-bedroom apartment, you’re in foreign-inflation territory.
6. Hidden Costs in the Fine Print
Overpricing isn’t just about the listed number,it’s also in the extras:
- HOA (homeowners’ association) fees are higher than local averages.
- Maintenance charges or “foreigner-only insurance.”
- Utility markups if the landlord insists on paying them and charging you back.
- Always ask for a full breakdown of recurring costs before signing anything.
7. Trust, But Verify Agent Promises
Real estate agents abroad may push properties with exaggerated claims: “prices are rising fast” or “this neighborhood is the next big thing.” These are sales tactics. Verify with data from:
- Government property registries.
- Online real estate analytics.
- Conversations with other expats already living in the area.
8. Walk Away Power
Perhaps the most powerful tool in your arsenal is the ability to walk away. Overpriced properties exist everywhere, but so do fair deals. If you treat your search like a negotiation, you’ll signal that you’re not desperate and overpriced sellers will quickly move on.
Final Word
As an expat, avoiding overpriced property is about education and discipline. Don’t rely only on what’s marketed to foreigners. Learn local market realities, compare multiple sources, and remember that “foreign premium pricing” is a real phenomenon.
The difference between paying the inflated rate and the fair rate can mean thousands saved each year or the ability to invest in property that truly builds your wealth instead of draining it.
