What’s the best place to invest in property in the world? Discover the top 10 countries for real estate investment and invaluable tips for maximal returns.
There are few things more exciting than investing in property. Whether you’re looking to make an income from rent yields or hoping to access capital growth over the long term, it can be hugely rewarding.
However, with so many options, it can be hard to know where to start — and ultimately, decide the best place to invest in property in the world. To help you on your journey, we’ve pulled together 10 of the most significant global destinations for property investment — in no particular order.
The Best Countries to Invest in Real Estate in 2023
The table below highlights the best options for property investment and key metrics that explain why.
| Destination | Major Selling Point | GDP (2021) | Population (2021) | Rental Yields | Average Property Price |
| United Kingdom | A stable economy and strong property market. | £2.48 trillion | 67.33 million | 3%–5% | £288,000 |
| United States | Large, diverse market with strong economic fundamentals. | £18.45 trillion | 331.9 million | 6.12% | £339,188 |
| Germany | Europe’s largest economy with growing cities. | £3.37 trillion | 83.2 million | 3.12% | £4,435–£9,757 per square metre |
| Japan | Abundant opportunities in major cities. | £3.91 trillion | 125.7 million | 3.4%–5.4% | £266,635 |
| Malaysia | Affordable properties and significant growth potential in Asia. | £295.12 billion | 33.57 million | 2%–5.5% | £78,344 |
| UAE | Glitzy skyscrapers and higher returns in a tax-free haven. | £328.35 billion | 9.365 million | 9.19% (Dubai) | £261 Per square foot (Dubai) |
| New Zealand | Stunning landscapes and strong property market performance. | £197.72 billion | 5.123 million | 2.7%–5.3% | £384,771 |
| Canada | Stable housing market with room for growth. | £1.57 trillion | 38.25 million | 5.46% | £543,058 |
| Australia | A growing economy with high property demands. | £1.23 trillion | 25.69 million | 2.87% (Sydney) | £471,474 |
| France | Strong rental market. | £2.34 trillion | 67.75 million | 6% | £9,437 per metre square (Paris) |
The 10 Best Real Estate Markets in the World
Join us for an in-depth global analysis of the top property investment destinations.
1. United Kingdom
A Stable Economy and Strong Property Market
- GDP: £2.48 trillion (2021)
- Population: 67.33 million (2021)
- Average Rental Yields: 7.4% (North) and 5.2% (South)
- Average Property Price: £288,000
The United Kingdom offers a robust and secure environment for investors, characterised by its stable economy, strong property market, and consistent growth. This makes the UK an attractive destination for investors from overseas, particularly those living in less stable economies. Several prime locations for property investment abound in the UK, including but not limited to Manchester, Sheffield, North East, Liverpool, etc.
A Resilient and Flourishing Residential Property Market
The UK’s residential property market has consistently outperformed other investment options over the past 30 years. According to GOV.UK data, the UK has experienced a property price growth rate of approximately 5.5% from March 2022 to February 2022.
The country’s real estate market resilience is partly due to a combination of factors, such as the following:
- Growing Population: The increasing population fuels the demand for housing, increasing property prices and rental values.
- Limited Housing Supply: A scarcity of housing supply contributes to the upward pressure on property prices and rental rates.
- Rising Demand for Rental Properties: With changing lifestyles and affordability concerns, more people opt to rent, resulting in higher investor rental yields.
Regional Variations in Rental Yields
Rental yields in the UK are among the highest in Europe, with an average gross yield of 3%–5%. This figure varies depending on the region, as you can see below:
Higher Yields in the North (7.4%)
Factors contributing to higher yields in the North include regional economic growth, employment opportunities, and local housing demand.
Lower Yields in the South (5.2%)
The South typically offers lower yields due to higher property prices and a more competitive market.
Exploring Social Housing Ownership for Maximal Returns
For investors seeking to minimise risk while achieving high returns, supported living/social housing providers like Yield Investing may be attractive. Our asset-backed real estate firm allows you to purchase a wide range of high-quality flats, houses, bedsits, and HMOs in key locations like Middlesbrough, Durham, etc., providing steady returns on your investments.
By investing in a diversified portfolio of properties, you stand to enjoy the following perks:
- Benefit from the stability of the UK property market.
- Spread your risk across multiple assets.
You can learn more about our investment strategies or contact us to get started.
In conclusion, the United Kingdom’s stable economy and thriving property market make it an appealing destination for investors seeking lucrative and secure opportunities in the residential property sector.
By understanding regional variations and exploring innovative investment strategies like fractional ownership, you can capitalise on the UK’s strong property market while effectively managing risk.
2. United States
Large, Diverse Market With Strong Economic Fundamentals
- GDP: £18.45 (2021)
- Population: 331.9 million (2021)
- Average Rental Yields: 6.12%
- Average Property Price: £339,188
The United States is a sought-after destination for investors aiming to dive into a vast and diverse market backed by solid economic foundations. With a GDP of £18.45 trillion in 2021 and a population of 331.9 million, the US qualifies as the best country to buy property for investment for many.
The country’s well-developed cities offer various real estate investment opportunities that cater to various preferences and budgets.
Navigating High Housing Costs in Major Cities
While housing costs in prominent urban centres can be steep, presenting challenges for investors seeking entry into the market, there are still opportunities for purchasing property with lower initial investments and enjoying attractive returns.
To tap into these opportunities, investors can explore the following:
Emerging Markets
Investors can benefit from lower initial costs and capitalise on future appreciation by identifying regions with solid growth potential.
Up-and-Coming Neighbourhoods
Investing in neighbourhoods experiencing revitalisation or development can offer more affordable property prices and the prospect of long-term growth.
Properties Requiring Renovations
Purchasing properties needing renovations can lead to lower acquisition costs, with the upside of increased property value after improvements are made.
By capitalising on these tips and staying informed about market trends, you can make well-informed decisions and maximise your chances of success in the US property market.
3. Germany
Europe’s Largest Economy With Growing Cities
- GDP: £3.37 trillion (2021)
- Population: 83.2 million (2021)
- Average Rental Yields: 3.12%
- Average Property Price: £4,435–£9,757 per square metre
Germany, the largest economy in Europe (a record it’s held since 1980) and the fourth-largest globally, presents a compelling case for property investment. The country’s diversified industries and rapidly growing cities have caught the attention of foreign investors seeking lucrative opportunities in a stable environment.
Advantages of Investing in German Property
Several factors are responsible for Germany being a prime real estate investment opportunity, and they include the following:
Low Property Prices
Germany’s property prices are relatively low compared to other European countries, making it more accessible for investors to enter the market.
Tax Incentives
Germany offers various tax incentives for property investors, such as tax deductions for depreciation and renovation expenses, which can help reduce the overall investment cost.
Strong Rental Demand
With a growing population and a thriving economy, Germany experiences high rental demand, especially in urban centres. This strong demand can lead to stable rental income for property owners.
Government Incentives and Subsidies
The German government provides various incentives and subsidies for property investment, such as low-interest loans for energy-efficient renovations, which can further boost the profitability of investments.
Long-term Capital Appreciation Potential
German properties have shown consistent long-term capital appreciation, making them an attractive option for investors seeking long-term growth in addition to rental income.
Stability: A Key Factor for Investment
Germany is known for its stable economy and political system, making it an attractive destination for investors from countries with less stability and higher risk. This stability and the abovementioned advantages make German property investment appealing for those seeking a secure and potentially lucrative opportunity.
4. Japan
Abundant Opportunities in Major Cities
- GDP: £3.91 trillion (2021)
- Population: 125.7 million (2021)
- Average Rental Yields: 3.4%–5.4%
- Average Property Price: £266,635
Japan offers abundant opportunities for property investment across its major cities, backed by a stable and reliable economy. This makes Japan one of the best countries to invest in real estate in 2023, particularly for those living in less stable economies. Furthermore, its strategic location in East Asia allows it to draw investors from across the region, who seek higher yields than their local markets.
Tokyo: A Global Metropolis with High Yields
Tokyo, the most populous city in the world (37.45 million), is often the first choice for investors seeking high yields in Japan. The city’s thriving economy, diverse property market, and international appeal make it a prime location for real estate investment.
Key factors contributing to Tokyo’s attractiveness include the following:
- Strong Job Market: Tokyo offers diverse employment opportunities, attracting local and international talent.
- High Demand for Rental Properties: With a dense population and limited housing supply, demand for rental properties remains high, supporting solid rental yields.
Osaka and Kyoto: Cultural Hubs with Investment Potential
Beyond Tokyo, Osaka and Kyoto also offer attractive investment opportunities for foreign investors, thanks to their rich cultural heritage and vibrant nightlife.
These cities provide unique advantages for property investment due to the following factors:
- Tourism Appeal: Osaka and Kyoto are popular tourist destinations, boasting historical sites, traditional architecture, and world-class cuisine.
- Growing Popularity Among Expats: As more international companies establish their presence in Japan, Osaka and Kyoto increasingly attract expatriates, driving demand for rental properties.
- Affordable Property Prices: Unlike Tokyo, Osaka and Kyoto generally offer more affordable property prices, making them accessible entry points for investors.
5. Malaysia
Affordable Properties and Significant Growth Potential in Asia
- GDP: £295.12 billion (2021)
- Population: 33.57 million (2021)
- Average Rental Yields: 2%–5.5%
- Average Property Price: £78,344
Malaysia is an attractive destination for property investment due to its competitive property prices, steady economic growth, and substantial development potential, particularly within the tourism industry. As one of Southeast Asia’s top countries for foreign investments, Malaysia boasts government initiatives and State Investment Centers that actively promote foreign investments.
Affordable Properties: Opportunities for Investors
Malaysia’s property market offers affordable options compared to its Asian neighbours, providing an accessible entry point for investors.
Key factors contributing to the attractiveness of Malaysia’s property market include the following:
- Government Initiatives: Malaysia actively promotes foreign investment with policies that attract overseas investors.
- Financing Options and Tax Incentives: First-time homebuyers can benefit from attractive financing options and tax incentives for real estate purchases, enabling them to build a secure financial future.
Tourism Industry: A Catalyst for Growth
Malaysia’s thriving tourism industry presents significant growth potential for property investors, and it’s driven by the following factors:
- Increasing Visitor Numbers: Malaysia attracts several tourists annually, peaking at 27.44 million in 2014 over the last decade. This contributes to the demand for hospitality and residential properties. While this metric declined massively to 4.33 million and 0.13 million in 2020 and 2021, respectively, due to the recent pandemic restrictions, there are prospects for an upsurge in the future. For context, this figure hit 10.07 million in 2022 alone, projecting hope in the years to come.
- Infrastructure Development: Ongoing investments in transportation and tourism-related infrastructure further support the property market’s growth.
6. UAE
Glitzy Skyscrapers and Higher Returns in a Tax-Free Haven
- GDP: £328.35 billion (2021)
- Population: 9.365 million (2021)
- Average Rental Yields: 9.19% (Dubai)
- Average Property Price: £261 per square foot (Dubai)
With its ultra-modern cities, skyscrapers, and thriving economy, the UAE is one of the best real estate markets in the world. It offers high returns, a beautiful landscape, and a tax-free environment, making it an ideal destination for investors worldwide seeking higher yields with less risk.
Tax-Free Advantages: A Means to Maximise Profitability
The UAE’s tax-free status provides numerous benefits for property investors, such as the following:
- No Property Taxes: Investors can enjoy increased profitability, as there are no taxes to pay on any kind of investment, including property investment. The only exception is the cumulative 4% transfer tax, which the buyer and seller of a property pay.
- Lower Operating Costs: The absence of taxes reduces the overall cost of property ownership, leading to higher returns on investment.
Investment Opportunities: Residential and Commercial Real Estate
The UAE offers a diverse range of property investment opportunities, particularly in cities like Dubai:
- High Rental Yields for Residential Properties: Dubai’s rental market is known for its high yields. For instance, Dubai Marina can yield up to 6.3% returns, while prime areas like Jumeirah Lake Towers offer yields of 9.7%.
- Commercial Real Estate: Besides residential properties, investors can explore opportunities in the commercial real estate sector, such as office spaces, retail outlets, and industrial properties.
7. New Zealand
Stunning Landscapes and Strong Property Market Performance
- GDP: £197.72 billion (2021)
- Population: 5.123 million (2021)
- Average Rental Yields: 2.7%–5.3%
- Average Property Price: £384,771
A Picturesque Investment Destination
New Zealand, known for its breathtaking landscapes of snow-capped mountains, rolling hills, and pristine lakes, is a stunningly beautiful country and a prime location for property investment. Its strong economy and consistently performing property market make it an ideal choice for investors worldwide.
Economic Stability: A Solid Foundation for Investment
New Zealand’s strong economy serves as a compelling premise for a thriving property market, and it’s driven by these factors:
- Consistent Growth: The country has experienced consistent economic growth, providing a stable environment for property investors.
- Low Unemployment Rate: With a low unemployment rate of 3.4%, New Zealand’s workforce remains robust, contributing to the overall economic health and supporting the property market.
The property market in New Zealand continues to perform well, offering promising opportunities for investors. Investors can choose from various property types, including residential, commercial, and agricultural properties, catering to various investment preferences and budgets.
8. Canada
Stable Housing Market With Room for Growth
- GDP: £1.57 trillion (2021)
- Population: 38.25 million (2021)
- Average Rental Yields: 5.46%
- Average Property Price: £543,058
Canada’s stable economy and real estate market make it the best place to invest in property in the world, particularly those from less stable economies. With a strong emphasis on personal savings and growing demand for housing, Canada offers diverse investment opportunities across its 10 provinces and three territories.
Economic Resilience: A Strong Foundation for Property Investment
Canada’s economic resilience is a crucial factor contributing to the stability and attractiveness of its property market, and it’s promoted by the following factors:
- Robust Economy: Despite the 2019/2020 pandemic’s impact, Canada has managed to maintain a stable economy (the 11th largest globally), providing a solid foundation for property investors.
- Focus on Personal Savings: Canadians prioritise personal savings, driving demand for housing and contributing to the market’s overall health.
Regional Variations: Diverse Investment Opportunities
Canada’s vast size and regional differences provide a wide range of investment opportunities, such as the following:
High-Value Markets
Cities like Toronto and Vancouver boast higher property values and rents, offering lucrative investment options for those seeking premium properties.
Emerging Markets
Ottawa, Montreal, and Calgary are characterised by more affordable real estate markets with significant growth potential, making them ideal for investors looking for opportunities in up-and-coming areas.
Population Growth: A Key Driver for the Property Market
Canada’s population is projected to grow by as much as 44 million people by 2030, further bolstering the property market and offering investors additional opportunities:
Increased Demand for Housing
With population growth comes a heightened demand for housing, benefiting property investors in various regions.
Infrastructure Development
Growing populations often lead to infrastructure improvements, positively impacting property values.
9. Australia
A Growing Economy With High Property Demands
- GDP: £1.23 trillion (2021)
- Population: 25.69 million (2021)
- Average Rental Yields: 2.87% (Sydney)
- Average Property Price: £471,474
Australia is a compelling alternative to the UK for property investment, boasting a growing economy and rising demand for housing. The country’s robust economy (the 12th largest globally as of 2021) is continually growing (projected to increase by 1.3% by the end of 2023), providing a solid foundation for property investments.
Additionally, the country offers attractive tax advantages for residential and commercial property investments.
Tax Advantages: Boosting Investment Returns
Australia offers several tax benefits for property investors, significantly impacting profits, via the following means:
Generous Tax Deductions
Australian property investors can benefit from substantial tax deductions for residential and commercial investments, thereby reducing their taxable income and increasing their returns.
Capital Gains Tax Exemptions
You may qualify for partial or complete exemptions from the capital gains tax (CGT), further boosting your investment returns.
10. France
Strong Rental Market
GDP: £2.34 trillion (2021)
Population: 67.75 million (2021)
Average Rental Yields: 6%
Average Property Price: £9,437 per metre square (Paris)
France’s strong rental market, picturesque landscape, and thriving tourist industry qualify it as the best country to buy property for investment for several investors. Additionally, the country offers low-risk investment opportunities and a stable economy, further enhancing its appeal.
Tourism and Diverse Landscape: Fundamentals for a Boost in Rental Demand
France’s popularity among tourists and its diverse landscape support the growth of the rental market, as we’ll see below:
- Large Tourist Population: France is a popular tourist destination, attracting up to 218 million people globally in 2019. This high influx of tourists creates a strong demand for short-term rental properties.
- Beautiful and Diverse Landscape: From bustling cities, such as Paris, to idyllic countryside regions, France offers a wide range of landscapes that cater to different rental markets, increasing opportunities for property investors.
Stability and Accessibility: Encouraging Foreign Investment
Several factors create a favourable environment for foreign investors, with the most prominent two including the following:
- Stable Economy: France ranks as the seventh-largest economy globally and the third-largest in Europe. This provides a solid foundation for property investments, reducing the risks associated with market fluctuations.
- Accessible Property Ownership Laws: French law makes it easier for foreign investors to own properties than in many other countries, contributing to its appeal as a low-risk investment destination.
5 Tips for Unlocking the Potential of Foreign Real Estate Markets
Investing in foreign real estate can be lucrative and rewarding, providing opportunities for diversification, tax benefits, and wealth growth. However, maximising your investments requires strategic planning and thorough research.
Here are five tips to guide you in making the most of your foreign real estate investments:
- Research and identify promising markets.
- Diversify your portfolio.
- Understand tax implications.
- Hire local experts.
- Listen to experienced investors.
Tip #1: Research and identify promising markets.
To maximise your investments, it’s crucial to pinpoint foreign markets with promising growth potential, stability, and favourable regulations.
Consider the following factors when evaluating potential markets:
- Economic and political stability
- Property market trends and historical performance
- Population growth and demographic trends
- Infrastructure development and accessibility
- Legal framework and property ownership regulations
Tip #2: Diversify your portfolio.
Investing in multiple properties across countries can help mitigate risks and enhance overall returns. Diversification can offer geographical and currency benefits, protecting your portfolio from market fluctuations and currency exchange rate risks.
Tip #3: Understand tax implications.
Familiarise yourself with the tax laws and regulations in the countries you invest in to maximise tax benefits and avoid potential pitfalls. Consult tax professionals with expertise in international real estate investments to ensure compliance and optimise your tax strategy.
Tip #4: Hire local experts.
Engage local real estate agents, property managers, and legal professionals to navigate the complexities of foreign property markets. Local experts can provide valuable insights, assist with due diligence, and ensure a smooth transaction process.
Tip #5: Listen to experienced investors.
Explore speaking to investors that have purchased property in the markets you have identified. Ask them for advice on the experience and how to maximise returns in the right products.
Yield Investing: A Powerful Partner in Foreign Real Estate Investments
To maximise your foreign real estate investments, following a strategic approach, conducting thorough research, and collaborating with local experts are essential. Partnering with a company like Yield Investing can elevate your investment experience, offering low-risk social housing property investment opportunities with secure returns.
At Yield Investing, we pride ourselves on providing ethical investment opportunities that benefit our clients and communities. Our primary value proposition is delivering completed properties with high yields, ensuring a low-risk, high-reward investment experience for our clients.
By choosing Yield Investing as your real estate investment partner, you can unlock the full potential of foreign property markets and secure a prosperous financial future.
Finding the Best Place to Invest in Property in the World: FAQs
Which country is best to buy property for foreigners?
There is no one-size-fits-all answer to this question; it depends on various factors, such as your budget, investment goals, and preferences. Some of the best countries popular among foreign property buyers include the United Kingdom, the US, Canada, France, and Australia. Each country has peculiar advantages and disadvantages regarding the real estate market, tax laws, and visa requirements.
Therefore, conducting thorough research and seeking professional advice before making any property investment decisions is essential.
What is the most profitable property to invest in?
The most profitable type of property to invest in is usually one with a vast tenant market. Such properties can include self-storage facilities, RVs (recreational vehicles), office spaces, and social housing, which tend to provide a good return on investment.
Which country has the fastest-growing real estate?
Hong Kong currently has the fastest-growing real estate, with a 5-year price growth of 93.7%.
What country has the richest real estate?
China has the richest real estate market in the world, with assets worth $42.7 trillion and representing 21% of the global real estate value. The US comes in second with $42.1 trillion in assets.
Wrapping It Up
Property can be a great way to build wealth and secure your financial future, but it doesn’t come without risks. When looking for the best place to invest in property in the world, it pays to do your research.
With Yield Investing, however, you can rest assured that you’re investing in properties that offer low-risk, long-term returns. With our already-completed assisted living properties, you can take advantage of the relatively stable UK economy and achieve a guaranteed rate of return.
Take the guesswork out of finding the best place to invest in property worldwide, and start building your real estate portfolio today by contacting us.
