Jasmine Birtles
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The Best Countries to Invest in Real Estate in 2025
Ruby Layram
30th Jul 2025
Investing in property is one of the most popular ways to build long-term wealth, and it’s not just about your local market. If you’ve ever dreamed of owning a sun-soaked villa or a slick city apartment that actually makes money, investing overseas could be your next smart move.
In 2025, the global property landscape is buzzing with opportunities, and some countries are standing out for all the right reasons. Whether you want holiday rental income, long-term growth, or a second home that pays for itself, here’s what you need to know, and where to look.
Why Invest in Real Estate Abroad?
Buying property overseas can open the door to:
- Higher rental yields than at home
- Lower property prices
- Access to emerging markets with big growth potential
- Lifestyle benefits, like second citizenship or better tax treatment
But, as with any investment, you’ve got to be smart about where you buy and why.
How to Know If a Country is a Good Investment
Before buying real estate in another country, ask yourself:
1. Is there strong demand?
Tourism, immigration, remote workers and expats can all create strong demand for rentals.
2. Is it politically and economically stable?
You don’t want your investment tied up in a country with unstable governance or currency chaos.
3. Are the laws investor-friendly?
Some countries offer great incentives for foreign buyers (like visas or tax perks). Others? Not so much.
4. What are the entry and running costs?
Factor in purchase taxes, legal fees, maintenance, and local property rules.
5. Is the currency strong?
Exchange rate movements can impact both purchase price and rental income, especially if you’re buying in dollars, pounds or euros.
The 10 Best Countries to Invest in Real Estate in 2025
So, where exactly should you be setting your sights in 2025?
1. United Arab Emirates (UAE)
Dubai and Abu Dhabi continue to be magnets for investors, with high rental yields, no property tax, and a buzzing expat scene.
This area of the world comes with a number of perks such as 0% income tax, strong tourism, and high demand for rentals.
Hotspots to consider include Dubai Marina, Downtown Dubai and Business Bay. You can expect rental yields of around 7–9% here.
2. Portugal
Portugal is still a firm favourite for British investors, especially Lisbon and the Algarve. Property is reasonably priced and the rental market is strong (plus, who wouldn’t want a villa somewhere sunny?)
Portugal comes with great weather, booming tourism, and favourable tax incentives. The hotspots include Lisbon, Porto and the Algarve.
The rental yields here are around 4–6%- modest bust still enough to beat inflation!
3. Spain
Whether it’s a beachfront flat in Costa del Sol or a chic apartment in Barcelona, Spain has long been a favourite for foreign property buyers.
The holiday hotspot has a solid rental market, strong resale value, and a lot of sunny lifestyle perks! Although Barcelona is popular, you might want to consider Valencia, Malaga, Seville, or Madrid.
Rental properties in these areas typically have a yield of around 4–5.5%.
4. Greece
Property Greece is still relatively affordable, especially on the islands. Tourism has recently bounced back, and short-term lets can be pretty lucrative!
Greece offer a golden Visa scheme, which means that gives you residency via investment. It also comes with high tourist demand and bargain prices!
Hot spots include Athens, Crete, Santorini, and Thessaloniki, and rental yields typically sit at around 5–7%.
5. Cyprus
Cyprus offers a laid-back lifestyle, sunshine, and property prices lower than much of mainland Europe, with decent rental potential.
Other perks of this country are low tax rates, English widely spoken, and EU access. Some of the most popular cities to invest in are Paphos, Limassol, and Larnaca. Rental yields are around 4.5–6%.
6. Mexico
Mexico is drawing global investors thanks to its affordable property, low taxes, and booming tourism, especially in hotspots like Tulum and Playa del Carmen.
The country offers strong tourism, low entry costs, and a growing expat community. The best cities to check out include Tulum, Playa del Carmen, and Mexico City.
Rental yields can be pretty strong, sitting at around 6–9%.
7. Hong Kong
It’s one of the world’s most expensive markets, but Hong Kong remains a financial hub, and savvy investors are snapping up opportunities in 2025 as prices cool slightly.
Hong Kong has a strong legal system, high rental demand, and huge capital growth potential.
If you want to invest in this bustly country, consider Kowloon, Central, or Wan Chai cities. Yields are relatively low at 2.5–4%, but investment can have strong capital gains.
Also see: How to invest in the Hong Kong stock market.
8. Colombia
Colombia might not be on your radar yet, but it’s one of the most exciting emerging markets in 2025. Medellín, in particular, is a hotspot for digital nomads.
Colombia has low property prices, strong Airbnb demand, and a growing expat scene.
Rental yields are also high, at around 7–10%.
9. South Africa
Property in Cape Town and Johannesburg is affordable by international standards, and tourism is back with a bang.
Poperty comes with high rental yields, an English-speaking market, and lifestyle appeal.
The hotspots include Cape Town, Durban, Johannesburg
10. Malta
Last but not least, we have Malta. This tiny island nation in the Med offers tax perks, EU access, and a growing property market driven by expats and financial services.
Malta also offers investor-friendly rules, a stable market, and a large English-speaking community. The most popular cities include Sliema, St. Julian’s, Valletta. You can expect rental yields to be around 4–5.5%.
How to Choose the Right Property
Once you’ve picked your country, the next step is finding the right type of property. Here’s what to think about:
- Know your purpose: Are you after long-term rental income, short-term lets, capital gains, or a holiday home that pays for itself?
- Choose location wisely: A good property in a bad area won’t perform. Look for proximity to airports, tourist areas, universities or business hubs.
- Check the data: What are the rental yields? What’s the occupancy rate? Are prices rising?
- Get legal help: Always work with a local, independent solicitor — and never skip the due diligence.
- Budget for extras: Don’t forget purchase taxes, ongoing maintenance, and potential currency fluctuations.
Final Thoughts: Should You Invest Abroad?
Investing in international property isn’t just about escaping the British weather, it’s about diversification.
Buying real estate in the right country can:
- Protect you against domestic market fluctuations
- Provide income in a different currency
- Offer tax advantages
- Even open up a pathway to residency or dual citizenship
Of course, every country comes with its own set of rules, taxes and risks. But with careful planning, expert advice and a clear strategy, your dream investment property could be waiting just a flight away.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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