Foreign investment in domestic real estate is increasing. In particular, lease contracts for foreign-owned properties are showing growth primarily in Seoul's Gangnam three districts, Mapo, and Yongsan.
According to the court registration information center on the 8th, from January to May this year, there were 8,655 foreign landlords recorded in real estate lease contracts that received confirmation dates at registration offices or community centers nationwide.
Seoul ranked first with 4,150 people (47.9%). Following were Gyeonggi Province with 2,581 people and Incheon with 644 people.
Looking at the number of foreign landlords by Seoul's autonomous districts during this period, Gangnam District had the largest number at 469. It was followed by Songpa District (394), Seocho District (326), Mapo District (285), and Yongsan District (248).
Foreign landlords in the Gangnam three districts accounted for 28.7% of the total in Seoul.
On an annual basis, foreign real estate leasing cases are also on the rise in popular areas, including the Gangnam three districts.
Gangnam District increased from 87 people in 2020 to 197 in 2021, 443 in 2022, and 501 in 2023, recording 945 last year.
Yongsan District increased annually from 76 people in 2020 to 454 last year, while Mapo District grew from 75 to 516 last year.
However, the total number of lease contracts with foreigners as landlords remains negligible at less than 1%.
In contrast, areas on the outskirts of Seoul, such as Gangbuk District, Dobong District, and Jungnang District, have relatively few foreign real estate leasing cases.
It is analyzed that foreigners are investing in properties in areas with high potential for price increases to collect rent and achieve future capital gains.