The Best Countries to Invest in Real Estate

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Written By Justin McGill

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

If you’re looking to invest in real estate, there are several factors to consider. But one of the most important is finding a country with strong economic prospects and plenty of opportunities. That’s why we’ve compiled this list of the best countries to invest in real estate.

With their growing economies and abundance of investment opportunities, these countries offer investors a great return on their investment. So if you’re thinking about investing in real estate, be sure to check out our list of the best countries to do it.

Best Countries to Invest in Real Estate

The best countries to invest in real estate feature strong economic stability, rental demand, population growth, and property prices.

If you are planning on investing your money in foreign markets, make sure you are knowledgeable about their financial systems.

The methods in foreign countries might be different than those in your country, so keep that in mind.

To compare the pricing of properties, we looked at the average price per square meter and rent for 2-bedroom units in each country.

Have you been thinking about investing some of your money in rental properties abroad?

Many investors are turning to international property markets to buy properties that can generate good rental income. This will not only help them to cover their mortgage but also give them a steady flow of cash.

As a landlord, you have the opportunity to earn income from owning property. This can be a great way to generate passive income and build your wealth over time.

For its most recent report, GoBankingRates has ranked the best countries in the world for buying real estate that offers high returns on investment.

If you’re looking for a solid real estate investment, you can’t go wrong with any of these countries. They all offer high rental yields and are relatively stable markets. So take your pick and start earning some passive income!

1. Indonesia

If you’re looking for a good place to invest in real estate, Indonesia should be at the top of your list. The country has a healthy economy and a variety of natural resources, making it a great choice for investors.

Additionally, the investment climate in Indonesia is very favorable, so you’re likely to see a good return on your investment if you choose to invest here.

Indonesia’s population makes it a prime location for buying real estate. It is home to a large consumer base, and you can find renters for your property.

As a foreigner, you can lease a property and enjoy it more as you get a steady income from it. While it is still not easy for overseas investors to buy properties directly, leasing agreements are quite common.

The government is currently considering a proposed bill that would allow overseas investments in property. This would be a great opportunity for those looking to invest in real estate, as it would open up a whole new market.

  • Rental yield: 8.61%
  • Rental income tax: 20%
  • Rent: $2,486
  • Average cost of property: $1,200 per sq.m (city center), $656 per sq.m (outside city center)

2. Columbia

A country characterized by innovation, Columbia can be a good place for foreigners to invest in real estate.

The country’s economy has boomed over the last 30 years, growing by 3.8% and doubling its gross domestic product.

In addition, it has a high rental income, which means you make more money while investing in it.

  • Rental yield: 6.51%
  • Rental income tax: 24.75%
  • Rent: $1,548
  • Per square metre cost of an apartment: $1,400 (city center),$1,100 (outside city center)

3. The Philippines

If you’re looking to buy a property abroad, consider the Philippines.

With the number of foreign residents increasing, the property value here has great potential to increase. This is your chance to invest in property now and reap the rewards later.

The Philippines has a severe shortage of affordable housing, with 20 million people looking for rental homes. This has resulted in the rental market being flooded with properties in the middle-income range.

An interesting thing about the real estate market in the Philippines is that, unlike other Indonesia and Columbia, it has a low property tax. This translates to a high return on investment.

  • Rental yield: 6.13%
  • Rental income tax: 4.06%
  • Monthly rent: $2,422
  • Per square metre cost of an apartment: $1,800 (city center), $1,000 (outside city center)

4. Panama

The real estate market in Panama is very stable thanks to foreign investors from Venezuela, Colombia, and Argentina.

It’s making steady progress as compared to other real estate regions in this nation. It’s also fertile farmland, so once you invest in it, you can participate in agriculture-related ventures as well.

  • Rental yield: 5.75%
  • Effective rental income tax: 2.08%
  • Monthly rent: $2,075
  • Per square metre cost of an apartment: $2,200 (city center), $1,500 (outside city center)

5. Morocco

Morocco is a great place to invest in property due to its strong macroeconomic status. The country is relatively affordable and offers a high standard of living. Additionally, Morocco has an effective banking system that can protect your business interests.

If you’re worried about double taxation issues that many ex-pats face in other countries, don’t worry—you won’t have to deal with that in Morocco.

  • Rental yield: 5.52%
  • Rental income tax: 10.7%
  • Rent: $854
  • Per square meter cost of an apartment: $1500 (city center), $800 (outside the city center)

6. The United Arab Emirates

Thinking of investing in a tax-friendly country? Consider the United Arab Emirates.

The country offers a higher rental yield, making it a great place to invest in real estate. You can reap the maximum benefits of your investment without having to worry about income tax.

If you’re looking to invest in residential property, Dubai has a wide range of options to choose from.

The most popular areas for apartment buyers in Dubai are Downtown Dubai, Dubai Marina, International City, and Palm Jumeirah.

The average cost of a studio, 1- and 2- bedroom apartment in Dubai Marina is between AED 850,000 and AED 1.95 million while the same flats in the downtown area costs between AED 1.1 million and AED 2.9 million.

  • Rental yield: 5.19%
  • Rent: $3,070
  • Per square metre cost of an apartment: AED 9,000 or $2,500 (city center), AED 7,000 or $1900 (outside city center)

7. Thailand

With a booming economy and expanding tourism industry, Thailand is one of the best places to invest in real estate.

The country has a strong economy and expanding tourism industry, making it a wise investment. Plus, condos are more cost-effective and easily manageable than other individual properties, so investing in the condo market is a smart move.

Furthermore, it is the only type of property that you can purchase outright, so owning it would benefit you the most.

  • Rental yield: 5.13%
  • Rental income tax: 2.73%
  • Monthly rent: $2,029
  • Per square metre cost of an apartment: $3,500 (inside City Centre), $1,800 (outside of centre)

8. Cyprus

Cyprus has become one of the most significant countries for real estate investment due to its steady rental yields.

When you invest in a home in Cyprus, you can reap the rewards of a fixed income that will cover your costs. This would include mortgage repayments and any financial issues that may arise while buying a home.

Property prices are reasonable so you’re likely to see a good return on your investment.

  • Rental yield: 5.12%
  • Rental income tax: 0%
  • Rent: $966
  • Per square metre cost of an apartment: $2,300 (city center), $1,700 (outside city center)

9. Germany

If you’re looking to invest in a property in Europe, then consider investing in German real estate.

Having achieved financial security, it is one of the leading financial institutions in the world today, so you’d be in no trouble investing in it.

Germany is an excellent choice for real estate investment due to its low cost of living and effective income tax rate. These factors provide stability and security for your investment, making Germany a safe choice for real estate investors.

  • Rental yield: 3.99%
  • Rental income tax: 2.71%
  • Rent: $1,769
  • Per square meter cost of an apartment: $5,500 (in major cities such as Berlin), $3,700 (outside city center)

10. France

If you’re looking for a long-term ROI, the French real estate market is one of the most popular areas in Europe. You can make in-country financing – something that not all countries can claim to offer!

One of the great things about investing in French real estate is that mortgage interest rates are relatively low, and you can finance up to 85% of the purchase price. This gives you more options when it comes to refinancing. Additionally, taxation on rental income is lower than in other European countries.

  • Rental yield: 2.79%
  • Rental income tax: 10%
  • Rent: $4,379
  • Per square meter cost of an apartment: $6,900 (in major cities such as Paris), $4,200 (outside the city center)

That concludes our list of top real estate markets to invest in. But, aside from these, many investors invest in properties in the US and the UK as well.

The US and UK can offer you a 4.69% annual return on your rental property.

What Country is Best for Real Estate Investment?

There is no definitive answer to this question as it depends on a number of factors, including the investor’s goals, risk tolerance, and investment strategy. That said, some countries may be more attractive to real estate investors than others due to factors such as economic stability, population growth, and infrastructure development.

Can You Invest in Real Estate in a Different Country?

Yes, you can invest in real estate in a different country. There are a few things to consider before doing so, such as the legalities of ownership, the currency exchange rate, and the stability of the country. You will also need to be aware of any cultural differences that may impact your investment.

What Country Has The Most Real Estate?

There is no definitive answer to this question as it depends on how you measure “real estate.” For example, if you measure by total land area, then Russia is the largest country in the world with over 17 million square kilometers. If you measure by the total value of all property, then the United States is likely the leader, followed by China.

Conclusion

These are the best countries to invest in real estate. With their strong economies and abundance of investment opportunities, these countries offer investors a great return on their investment. So if you’re thinking about investing in real estate, be sure to check out our list of the best countries to do it.

Justin McGill