Best Countries to Invest in Real Estate in 2024

• Average Price per Square Metre (Apartment): $6,288.41
• Average Gross Rental Yield (City Centre): 4.3%

The UK boasts one of the world’s most historically stable real estate markets, and the meteoric growth in property values has led to massive returns for investors in the past few decades. There is also no requirement for citizenship or residency in the UK to invest in property.

By carefully selecting where you invest, you can potentially find high yields and affordable buy-to-let properties for sale. For example, the North of England regularly outperforms the South when it comes to rental yields (surpassing 7% in some cities), and recently, house price growth has also been more favourable in the North’s up-and-coming buy-to-let areas.

Why Buy Property in the UK?

A growing population and a lower property supply are pushing home values and rental prices. Changing lifestyles also means that more people are renting and doing so for longer, which is promising news for a buy-to-let investor.

Property investors could see high returns in the coming years thanks to significant capital growth potential in the UK.

According to Savills, the UK is expected to see 17.9% growth over the next five years, with certain regions like the North West and West Midlands predicted to see increases as high as 20.2%.

What Makes the UK Attractive to Real Estate Investors?

Tenant demand in the UK is hitting new highs when it comes to rental demand as more renters enter the market than ever before. This is causing rapid rental inflation and record-high rental prices.

The average cost of property is high compared to developing countries, but pockets of affordability can still be found in certain parts of the country, such as the North West of England.

• Average Price per Square Metre (Apartment): $8,388.48
• Average Gross Rental Yield (City Centre): 3.7%

This year, the international real estate group Juwai IQI found that Australia was the number one country for Chinese property buyers for the second year in a row. The country boasts a stable economy, aspirational lifestyle, and good potential returns in the long run.

However, there are some rules to be aware of when investing in Australian real estate, which can make it less attractive for some investors. This is because new regulations have been brought into place by the Foreign Investment Review Board due to concerns that increasing foreign investment could further inflame the current housing crisis in Australia by worsening supply issues. However, exceptions apply for new-build properties, meaning the process can be more straightforward if your investment property is a new building or on vacant land.

Why Buy Property in Australia?

Australia is not the most investor-friendly environment for overseas property investors due to the previously mentioned regulations. However, it is considered a long-term and lower-risk investment for those who can invest in Australian real estate.

The population of Australia is growing faster than the supply of available housing, keeping upward pressure on the cost of property. This has led to reliable and fast property price growth in inner-city areas. House price growth was around 10% in the five Australian capital cities from 2022 to 2023.

What Makes Australia Attractive to Real Estate Investors?

Australia has a diverse, growing population, and the lure of the Australian lifestyle is enough to keep plenty of investors interested in property down under.

While restrictions make the process more convoluted and restrict some more diverse investment opportunities investors enjoy elsewhere, Australia has an impressively stable property market. It has proven its resilience through economic uncertainty in recent years. Demand has remained high despite affordability challenges for consumers, and national home values have been rising for five consecutive months, according to the Guardian.

• Average Price per Square Metre (Apartment): $5,574.63
• Average Gross Rental Yield (City Centre): 2.4%

Japan is another nation known for its stability and as one of the most developed and urbanised countries in the world. Home to over 30 million people, Tokyo is the globe’s biggest metropolitan area, with diverse neighbourhoods for investors to peruse.

Tokyo is the most expensive region in Japan for property. For example, according to Yahoo Finance, a condo or small apartment in Tokyo averages $686,000, while the same type of property in Sendai will only set you back $312,000. However, while areas outside the most significant cities are much cheaper, property may not greatly appreciate value. Also, many factors must be considered to ensure steady demand from renters, making these low-priced cities and towns riskier investments. Japan is definitely a good choice if you are looking to buy off-plan property.

Additionally, it’s worth keeping in mind that overall, Japan is also known to have low rental yields due to relatively lower rental income and an ample supply of available rental properties.

Why Buy Property in Japan?

Japan’s declining population and slow growth have meant it is not historically known as a hotspot for overseas buyers. On the bright side, these long-term demographic issues have caused the country to become more welcoming to foreign residents, and as such, it has grown more popular with non-Japanese investors.

Although the economy is stable, it is not booming and is experiencing minimal growth, which is not a good sign for a property investor.

What Makes Japan Attractive to Real Estate Investors?

Japan is known as a very stable country, and the property market has experienced good growth in the past. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, home prices have grown by 21.4% in five years.

Despite some signs of slowing growth, Japan remains a robust property market likely to yield gains for long-term investors.

• Average Price per Square Metre (Apartment): $7,021.38
• Average Gross Rental Yield (City Centre): 1.8%

Mainland China may once have seemed like an attractive country for property investment for those who can do so, but it has been plagued by real estate problems. According to the OECD Economic Outlook, “successive waves of policy stimulus aiming to offset the ongoing contraction of the property sector, while low consumer confidence and inadequate social safety nets hinder the growth of private consumption.” They believe that China’s GDP growth will continue falling from 5.2% in 2023 to 4.7% in 2024 and 4.2% in 2025.

An alternative to mainland China could be Hong Kong. Although it is famous for being one of the most expensive property markets in the world, low taxes, business-friendly policies, an advantageous location, and relative stability mean it remains a popular place to invest in real estate.

Why Buy Property in Hong Kong?

Hong Kong is a central global financial hub, with a constant inward flow of business immigrants creating high demand for quality rental properties. There’s a population of over 8 million on this small island, so consistent demand and limited space means that owning a slice of Hong Kong’s exceedingly expensive property market can be seen as a status symbol.

What Makes Hong Kong Attractive to Real Estate Investors?

Thanks to its standing as a global financial hub, Hong Kong is an appealing investment opportunity, but it is very expensive, and rental yields are comparatively low. It may not be the best option for every type of investor, as a Hong Kong investment isn’t likely to match the short-term returns of many destinations on this list. However, the stability and attractive location make for a potentially more secure investment, and investing in the Hong Kong property market is one way to preserve wealth.

Prices fluctuate constantly, but some regions identified as particularly cheap for property in 2024 are Turkey, Mexico, Brazil, and Colombia.

But, of course, price is just one part of the equation when sizing up a potential investment opportunity. A location may have very cheap property but ultimately fall short when it comes to rental demand, rental income, or capital value appreciation, which will have a massive effect on your ROI. Learn more about the UK Interest rates history with RWinvest’s recent overview.

For this reason, while affordability is a significant factor to consider, investing in a country’s property market based on price alone is not recommended.