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.
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
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:
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.
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By investing in a diversified portfolio of properties, you stand to enjoy the following perks:
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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
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
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
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:
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:
5. Malaysia
Affordable Properties and Significant Growth Potential in Asia
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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:
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:
6. UAE
Glitzy Skyscrapers and Higher Returns in a Tax-Free Haven
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:
Investment Opportunities: Residential and Commercial Real Estate
The UAE offers a diverse range of property investment opportunities, particularly in cities like Dubai:
7. New Zealand
Stunning Landscapes and Strong Property Market Performance
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:
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
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:
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
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:
Stability and Accessibility: Encouraging Foreign Investment
Several factors create a favourable environment for foreign investors, with the most prominent two including the following:
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.
