Best Place's to Invest in Property: Top 10 Country Picks

Published: 21/02/2024

Investing in real estate is a thrilling venture, offering avenues for rental income or long-term capital growth. However, with numerous options available worldwide, deciding on the best location to invest can be challenging. To aid in your decision-making process, we have compiled a list of significant global destinations for property investment.
The Top Countries for Real Estate Investment
Below, you'll find a summary of prime locations for property investment along with key metrics:

1. United Kingdom
Major Selling Point: A stable economy and strong property market.
  • GDP (2021): £2.48 trillion
  • Population (2021): 67.33 million
  • Rental Yields: 3%–5%
  • Average Property Price: £288,000
The United Kingdom provides a secure environment for investors with its robust economy and consistent property market growth. Prime investment spots include Manchester, Sheffield, North East, Liverpool, among others.

2. United States
Major Selling Point: Large, diverse market with strong economic fundamentals.
  • GDP (2021): £18.45 trillion
  • Population (2021): 331.9 million
  • Rental Yields: 6.12%
  • Average Property Price: £339,188
The US offers extensive real estate opportunities across various cities, catering to diverse preferences and budgets. Emerging markets, up-and-coming neighborhoods, and properties requiring renovations present viable investment options.

3. Germany
Major Selling Point: Europe’s largest economy with growing cities.
  • GDP (2021): £3.37 trillion
  • Population (2021): 83.2 million
  • Rental Yields: 3.12%
  • Average Property Price: £4,435–£9,757 per square metre
Germany's stable environment, low property prices, tax incentives, and strong rental demand make it an attractive investment destination. Long-term capital appreciation potential further enhances its appeal.

4. Japan
Major Selling Point: Abundant opportunities in major cities.
  • GDP (2021): £3.91 trillion
  • Population (2021): 125.7 million
  • Rental Yields: 3.4%–5.4%
  • Average Property Price: £266,635
Japan offers stable economic prospects and strategic access to investors from various regions. Tokyo, with its high yields and strong job market, stands out as a preferred investment location.

5. Malaysia
Major Selling Point: Affordable properties and significant growth potential in Asia.
  • GDP (2021): £295.12 billion
  • Population (2021): 33.57 million
  • Rental Yields: 2%–5.5%
  • Average Property Price: £78,344
Malaysia's competitive property prices, steady economic growth, and government initiatives to attract foreign investments make it an enticing option. The thriving tourism industry further boosts its property market.

6. UAE
Major Selling Point: Glitzy skyscrapers and higher returns in a tax-free haven.
  • GDP (2021): £328.35 billion
  • Population (2021): 9.365 million
  • Rental Yields: 9.19% (Dubai)
  • Average Property Price: £261 per square foot (Dubai)
The UAE's tax-free status, high rental yields, and diverse property investment opportunities, particularly in Dubai, appeal to global investors. Residential and commercial real estate sectors offer promising returns.

7. New Zealand
Major Selling Point: Stunning landscapes and strong property market performance.
  • GDP (2021): £197.72 billion
  • Population (2021): 5.123 million
  • Rental Yields: 2.7%–5.3%
  • Average Property Price: £384,771
New Zealand's picturesque environment, coupled with a stable economy and growing property market, positions it as an attractive investment destination. Various property types, including residential, commercial, and agricultural, cater to diverse investor preferences.

8. Canada
Major Selling Point: Stable housing market with room for growth.
  • GDP (2021): £1.57 trillion
  • Population (2021): 38.25 million
  • Rental Yields: 5.46%
  • Average Property Price: £543,058
Canada's resilient economy, focus on personal savings, and regional diversity offer a spectrum of investment opportunities. Population growth and infrastructure development further contribute to the property market's stability and growth potential.

9. Australia
Major Selling Point: A growing economy with high property demands.
  • GDP (2021): £1.23 trillion
  • Population (2021): 25.69 million
  • Rental Yields: 2.87% (Sydney)
  • Average Property Price: £471,474
Australia's expanding economy, rising housing demand, and tax advantages for property investments make it an appealing choice. Tax benefits, including deductions and capital gains tax exemptions, enhance investment returns.

10. France
Major Selling Point: Strong rental market.
  • GDP (2021): £2.34 trillion
  • Population (2021): 67.75 million
  • Rental Yields: 6%
  • Average Property Price: £9,437 per metre square (Paris)
France's thriving rental market, scenic landscapes, and stable economy attract investors seeking low-risk opportunities. Its accessibility to foreign investors and diverse rental market contribute to its appeal as a property investment destination.
Tips for Foreign Real Estate Investments
To maximize foreign real estate investments, consider the following tips:
  1. Research promising markets: Evaluate economic stability, market trends, and legal frameworks.
  2. Diversify portfolio: Spread investments across countries for risk mitigation.
  3. Understand tax implications: Familiarize with tax laws and seek professional advice.
  4. Engage local experts: Collaborate with real estate professionals for insights and guidance.
  5. Learn from experienced investors: Seek advice from those with successful investment experiences.

By following these tips and leveraging the expertise of partners like Yield Investing, investors can unlock the full potential of foreign real estate markets and achieve prosperous financial outcomes.