Top 10 Countries for Real Estate Investment in 2025: Emerging Markets to Watch

Real estate remains one of the most stable and secure investment options, offering protection against inflation and potential rental income. While financial markets fluctuate, real estate investments tend to retain value and provide long-term appreciation. However, choosing the right location is key to maximizing returns.

Here’s our ranking of the top 10 countries for real estate investment in 2025, based on market growth, rental yield potential, legal framework, and investment opportunities.

1. United Arab Emirates (Dubai, Abu Dhabi, Sharjah)

Dubai continues to be one of the world's most dynamic real estate markets. In February 2025, Dubai’s property transaction volume reached AED 51.1 billion ($14 billion), marking a 40% year-on-year growth (Khaleej Times).

However, there are concerns about overheating, as property prices have surpassed pre-2008 levels, growing faster than in London, Paris, or Madrid (Financial Times). Despite this, Dubai still offers:

- Rental yields of 6–8%
- Tax-free rental income
- Long-term residency visas (Golden Visa) for property buyers from AED 2 million ($545,000)
- No property taxes

Market Risks: Some analysts believe Dubai’s premium segment is showing signs of a bubble, with speculative investments driving up prices.

2. Portugal

Portugal has been a strong performer in the European real estate market. Housing prices rose 11% in 2024, driven by high demand and limited supply.

- Rental yields: 4.7%–7.2%
- Property price growth forecast: 5% (2025), 3% (2026)
- Liberal policies for foreign buyers
- High demand for short-term rentals in Lisbon, Porto, and the Algarve

Market Risks: The Golden Visa program has ended for property investments, and new short-term rental restrictions may impact profitability.

3. Spain

Spain’s property market remains attractive, with strong price growth:

Madrid: +20% YoY (€4,952/sqm)

Barcelona: +12.8% YoY (€4,700/sqm)

Valencia: +24% YoY (€2,836/sqm)

- Rental yields: 5%–7%
- High demand for vacation rentals
- Spanish residency possible with property purchase (€500,000) – but Golden Visa ends in April 2025

Market Risks: Rising property taxes and proposed restrictions on foreign buyers.

4. Thailand

Thailand remains a favorite for investors looking for affordable property and high rental yields:
- Rental yields: 6–10% (Bangkok, Phuket, Pattaya)
- No property tax
- Growing tourism sector

Market Risks: Foreign ownership limits (49% quota in condominiums)

Ongoing legal uncertainty in leasehold arrangements

5. Turkey

Turkey’s real estate market has been volatile but still offers strong investment potential:
- Istanbul property prices: $800–$5,000/sqm
- Rental yields: 5%–9%
- Turkish citizenship through property investment (min. $600,000 from 2025)

Market Risks: Economic instability and inflation

Restricted property purchases for foreigners in certain areas

6. Indonesia (Bali, Jakarta)

Indonesia, particularly Bali, has seen a real estate boom:
- Bali rental yields: 10%–12%
- Growing tourism demand
- Lower property costs compared to other Asian markets

Market Risks: Legal restrictions on foreign ownership. New tourist tax and short-term rental regulations

7. Greece

Greek property prices remain competitive, with strong growth in Athens and Thessaloniki:
- Rental yields: 5%–7%
- Golden Visa (min. investment now €800,000 in key locations)
- Stable market growth (3%–5% YoY forecast)

Market Risks:

- Tighter regulations on short-term rentals

- Increased property taxation

8. Georgia (Tbilisi, Batumi)

Georgia is an emerging hotspot for real estate investors:
- Rental yields: 8%–12% (Tbilisi, Batumi)
- No property taxes
- Easy residency process through property investment ($100,000 min.)

Market Risks: Foreign currency volatility

9. Cyprus

Cyprus remains an attractive market for EU and non-EU investors:
- Rental yields: 6%–7.5%
- Golden Visa options for property buyers
- Stable demand for rental properties

Market Risks:
- Tighter banking regulations for foreigners

- Potential tax increases on foreign-owned properties

10. Latvia

Latvia, particularly Riga, is a lesser-known but promising market:
- Rental yields: 4%–8.5%
- Affordable property prices (€1,500–€2,000/sqm in Riga)

Market Risks:

- Strict property purchase restrictions for Russians and Belarusians

- Limited liquidity for high-end properties

Conclusion: Where Should You Invest?

If you’re looking for high rental yields, Dubai, Thailand, Bali, and Georgia are top choices. For stable long-term growth, Spain, Portugal, and Greece offer excellent opportunities.

Each market has risks, so research is essential before investing.

Which country are you considering for real estate investment?