Are you considering diversifying your investment portfolio and putting your money in a foreign country? In other words, do you seek the best place to invest in property in the world for a profitable venture?
This comprehensive guide lists the top places to consider putting your money in 2024 and beyond. As is our culture, we’ve done extensive research and analysis on locations across the globe to determine where property values are rising, rental yields are highest, and capital appreciation is strongest.
Whether you’re looking to diversify your portfolio or make your first international real estate purchase, this roundup highlights the best opportunities out there right now to build your wealth through property investment.
Investors looking for higher returns might consider emerging markets like those in Asia and South America. Here are some of the areas across the globe that we’ve researched, from Asia to South America, Europe, and so on — viable property investment opportunities are always available if you know where to look!
Key Summary
- London, UK tops the list as the best place to invest in property in the world for 2024 due to its stability, high rental demand, and favorable tax policies for overseas investors.
- New York, USA and Singapore also rank among the best places to invest in real estate, offering excellent capital appreciation, diverse neighborhoods, and robust economies driving rental yields.
- Emerging markets like Dubai and Shanghai present lucrative opportunities with tax-free environments, high rental yields, and growing housing demand, making them some of the best places to buy real estate.
- Cities with high growth potential, strong infrastructure, and global appeal are highlighted for investors seeking the best ROI in real estate in the world, making this guide essential for maximizing returns in both mature and emerging property markets.
The Best Place to Invest in Property in the World: Top 8 Picks
Before we go into extreme details, here’s a quick overview of our top selection of prime spots to purchase property globally.
#1. London, UK: A Stable and Lucrative Market
Population: 9,648,000
Average Rental Yields: 4.1%
Average Property Price: £523,000
London is one of the major reasons many consider the United Kingdom as the best country to buy property for investment. It stands as a global powerhouse, commanding attention from investors worldwide due to a unique combination of factors.
As one of the world’s leading financial hubs and an iconic city in its own right, London offers a stable property market bolstered by strong and persistent demand — this, in turn, translates into healthy, reliable returns for investors.
From 1995 to 2023, property prices in London have seen a rise of 619%, making it a particularly attractive asset class for investors seeking both income and capital appreciation over the long term.
But the following factors truly set London apart.
Strategic Location and Excellent Transport Links
London is well-connected globally through its five major airports, including Heathrow, the fifth-busiest airport in the world. Its extensive rail network, including the Eurostar, connects it to mainland Europe, while its intricate public transportation system, encompassing the London Underground, buses, and trams, ensures seamless connectivity within the city.
A Thriving Economy
The city’s economy is not just thriving but expanding, with a highly skilled workforce contributing to its growth. Significant infrastructure improvements are continually underway, enhancing its appeal even further. Its status as a global city is undisputed, and this, combined with a high median salary, is a testament to its economic prowess.
High Demand for Rental Property
Demand for property, especially in desirable central locations, continues to outstrip supply. This imbalance supports property prices and rents. Recent reports indicate that the average property price in London exceeds £500,000, highlighting the city’s high demand for rental property and potential for capital growth.
With high rental yields and the potential for capital appreciation, London remains a top investment destination For those interested in exploring further investment opportunities or seeking detailed guidance on entering the property market, explore more with Baron & Cabot.
Tax Advantages for Overseas Investors
Another significant advantage of investing in London property is the country’s tax regime for foreign investors. The UK doesn’t heavily restrict foreign property ownership and taxes capital gains and rental income at competitive rates. Moreover, the British pound is a relatively stable currency, adding an extra layer of security by reducing foreign exchange risk for international investors.
A Global Hub
And let’s not forget the global appeal. London’s status as a global hub for business, culture, dining, and entertainment gives its real estate universal appeal and resilience. Even during economic downturns, London property values have held up better than other markets. For investors, this means less risk and more stability.
At Baron & Cabot, our property investment specialists have the expertise and experience to help clients invest in the UK’s property markets. We handle everything from sourcing and evaluating investment opportunities to financing, management, and exit strategies.
If you’re looking for a hands-off way of investing in London property, we’re here to help. Check out our London properties listing or contact us to get started and take the first step towards securing a piece of this vibrant, global city. If you’re looking to invest in a luxury home or apartment in London, take a look at Heathside.
#2. New York, USA: Strong Capital Appreciation and Rental Yields
Population: 18,937,000
Average Rental Yields: 2%–3%
Average Property Price: £562,226
New York City has long been a top destination for property investors as a real estate investment, and for good reason. With a population of almost 19 million, strong economic growth, and limited housing supply, the New York real estate market offers excellent opportunities for capital appreciation and rental income.
Here are several reasons that make New York a top property destination and the USA one of the best countries to invest in real estate in 2024:
- Capital Appreciation: Property values in NYC have climbed steadily over the past few decades. Recent data shows property prices appreciated by 79.16% in the last ten years. With high demand and limited space, the NYC property market is poised to continue increasing substantially in value over the long run.
- Rental Solid Yields: The competitive NYC rental market means real estate investors can charge premium rents. Average rents in Manhattan, for example, currently sit at about $4,614 per month (£3,711). This translates into annual gross rental yields of 2–3% or more for investors, providing a steady income stream.
- Diverse Neighbourhoods: From the upscale Upper East Side to trendy Williamsburg, NYC has a neighbourhood for every taste. This diversity gives real estate investors many options to match their investment goals. More affordable areas may offer higher returns, while prestigious neighbourhoods provide maximum capital gains.
New York remains an attractive place to buy property for long-term appreciation. With competitive returns, a robust market, and worldwide interest, the New York City real estate market deserves its place at the top of any investor’s list.
#3: Singapore: A Promising Market in Asia
Population: 5,984,244
Average Rental Yields: 2%–3%
Average Property Price: £1,237,169
Singapore is a tiny island in Southeast Asia that offers promising opportunities for property investors. Boasting a stable government, strong economy, and strategic location, Singapore ranks as one of the best real estate investment markets in the world and is poised for even more growth.
Economic Strength
As one of the wealthiest countries in the world with the second busiest port, Singapore has a very prosperous economy based on exports, particularly in electronics, petroleum products, chemicals, medical and optical devices, and financial services.
This economic strength translates into a strong, resilient real estate market. Residential property prices have risen steadily over the past decade, with forecasts predicting continued growth.
Prime Location
Singapore’s strategic location and strong economy contribute to its potential for capital growth. Situated along significant sea trade routes in Southeast Asia, the country serves as a hub for business and finance in the region.
Many multinational companies have established their Asia-Pacific headquarters in Singapore, driving demand for office space. Singapore’s Changi Airport is also a central air hub, bringing in tourists and business travellers worldwide.
Real Estate Landscape
The Singaporean government actively supports and regulates the real estate market. Singapore ranks as one of the best markets in the global real estate market. Strict laws protect property owners and investors, while initiatives like the Smart Nation program invest in infrastructure and technology.
The government also restricts foreign ownership of private residential property to keep prices stable for citizens. However, there are options for foreigners to invest in real estate, such as purchasing public housing, commercial property, or “non-restricted” condos.
In summary, Singapore offers an ideal combination for those looking to invest in real estate with a robust economy, strategic location, strong government, and limited real estate supply, positioning it as an attractive market for property investors, especially in Asia. The potential for capital appreciation and stable cash flow from rent make Singapore a good place to invest in property for the long term.
#4. Berlin, Germany: Europe’s New Investment Hotspot
Population: 3,574,000
Average Rental Yields: 2.84%
Average Property Price: £4.37 per square metre
A Cultural Hub With Strong Economic Fundamentals
Berlin has established itself as an economic powerhouse in Europe with a thriving property market. Berlin’s diverse economy and growing population make it an attractive location for investment property.
Some key factors that make Berlin one of the best real estate markets in the world include the following:
- A diverse, growing economy: Berlin has a robust economy based on sectors like technology, tourism, and creative industries. Its economy has grown over 4.9% annually in recent years, outpacing the rest of Germany.
- An influx of startups: Berlin has become a leading startup hub in Europe, with thousands of new companies launching yearly. This influx of companies and talent significantly boosts office and residential property market demand.
- A shortage of housing: Berlin has experienced a housing shortage for years, with recent reports highlighting a 1.2% vacancy rate (i.e., 98.8% of housing are occupied with tenants). The demand for housing far outstrips the supply, which means residential property values have significant room for price appreciation over the long run.
- Low living costs: Berlin offers affordable living compared to other major European cities. This makes it attractive for companies and individuals, fuelling economic and population growth. Demand for the property market far outstrips supply, making it a seller’s market.
Key Metrics That Stand Out
Outlined below are some statistics that highlight why Berlin is poised to be a top property investment location:
- 4.9% annual GDP growth over the past years, higher than the rest of Germany (2.6%) and the EU (1.81%).
- Over €4.9 billion in venture capital was invested in Berlin startups in 2021 — second only to London in Europe.
- The population of Berlin grew to over 3.5 million in the first quarter of 2023, reflecting an 0.08% increase.
With a vibrant culture, diversifying economy, and housing shortage, Berlin has solid fundamentals for property investment. In summary, the city offers good value for investors looking to capitalise on Europe’s newest hotspot.
#5. Tokyo, Japan: Immense Benefits From the 2020 Olympics
Population: 37,194,000
Average Rental Yields: 4.5%
Average Property Price: £361,130
Tokyo is another excellent area to look into if you’re considering diversifying your investment portfolio.
Let’s explore some key factors that make the city one of the best real estate markets in the world:
Economic Stability and Growth
Tokyo is the capital of Japan, which boasts the world’s third-largest economy by nominal GDP (£3.94 trillion). Japan, as a country, has a solid economic foundation with diverse industries, including finance, technology, automotive, and manufacturing.
What’s more, the country has a stable political environment, well-developed infrastructure, and a highly skilled workforce. And here’s an interesting statistic: the Tokyo metropolitan area alone contributes approximately one-third of Japan’s total GDP.
Population and Urbanization
Tokyo is one of the most populated cities in the world, housing over 37 million people in its metropolitan area. The city has a highly urbanised and densely populated landscape, leading to high demand for real estate. This population growth and limited available land drive up property prices and create investor opportunities.
Real Estate Market Performance
Tokyo’s real estate market has witnessed significant price appreciation over the years. The office market in Tokyo has also shown resilience, with vacancy rates remaining low and rental prices steadily rising.
Low-Interest Rates and Government Policies
Japan’s central bank, the Bank of Japan, has maintained a long period of low-interest rates (-0.1%), making borrowing more affordable — it’s no surprise many foreigners deem Japan the best country to buy property for investment.
Such low-interest rates incentivise investors to borrow money to finance real estate purchases, increasing their purchasing power. The Japanese government has also implemented policies to attract foreign investment, such as deregulation and easing visa requirements for foreign entrepreneurs.
Favourable Rental Market
Tokyo’s rental market offers attractive yields for foreign investors. Demand for rental properties is high due to the city’s transient population, which includes students, expatriates, and young professionals.
The popularity of short-term rentals and the growth of platforms like Airbnb have also provided opportunities for investors seeking to capitalise on the tourism market. Government policies in Tokyo are designed to encourage foreign investment.
It’s important to note that real estate investments come with some risks, meaning thorough market research and due diligence are necessary before making any investment decisions.
On the bright side, you can boycott these processes by consulting with the property investment experts at Baron & Cabot — we handle these on your behalf. Nonetheless, Tokyo’s economic stability, population growth, robust real estate market, low-interest rates, and government policies have made it an appealing hotspot for international property investors.
#6. Dubai, UAE: A Tax-Free Haven for Property Investors
Population: 3,570,000
Average Rental Yields: 2.22%–8.76%
Average Property Price: £275–£325 per square foot
Tax Benefits Galore
Dubai is a tax haven for property investors — no income tax, capital gains, or wealth tax. The emirate operates a simple flat-rate corporate tax system with a top rate of just 7%. This means you get to keep more of your money as an investor.
The tax savings can significantly boost your rental yields and returns, making the UAE one of the best countries to invest in real estate as of 2024.
Stable Currency and Economy
Dubai’s UAE Dirham currency is pegged to the stable US Dollar; this means your investments are protected from currency fluctuations. Dubai also has a robust, diversified economy focused on trade, tourism, real estate, and finance. The economy and job market remain strong, fuelling demand for property.
High Rental Yields
The lack of taxes and strong demand for housing allows Dubai landlords to charge high rents. Gross rental yields of 2.2%–8.76% per year are expected for apartments. For villas, you can achieve 10% or more — remarkably higher than what most major cities offer.
World-Class Infrastructure
Dubai has modern infrastructure, from the Dubai Metro to the Palm Jumeirah and Dubai Marina. New developments have amenities like gyms, pools, restaurants, and more. The high quality of life and amenities inadvertently attract affluent tenants and buyers.
Safety and Stability
Dubai is a safe and stable investment place. For one, it has a meagre crime rate and follows a pragmatic foreign policy. Moreover, there are no restrictions on foreign property ownership — your investments and rights will be protected.
While prices have briefly declined recently, Dubai remains a lucrative place to invest in real estate due to its tax-free environment. With high yields, a strong economy, and little chance of taxes being introduced, Dubai property should be on every investor’s radar.
#7. Shanghai, China: China’s Commercial Hub
Population: 29,211,000
Average Rental Yields: 5.4%–7%
Average Property Price: £4,091 per square metre
A Booming Economy and Property Market
Being the most populous city in China, Shanghai’s economy has continuously grown over time. This has fuelled the property market, with demand far outpacing supply. While prices are high, the potential for solid returns on investment is enormous.
Rising incomes and a growing middle class have led to a housing shortage, especially for young professionals seeking affordable apartments. On the bright side, the government has eased restrictions on property investment and provided incentives for developers.
Several new residential and commercial projects are underway, but demand continues to outstrip supply — sealing this region as the best place to invest in property in the world for many.
A Global Financial Hub
Shanghai is a global financial centre and transport hub, home to the Shanghai Stock Exchange and headquarters for central banks and financial firms.
All of these attract high-income jobs and wealthy residents seeking luxury properties. Shanghai offers numerous opportunities to buy property due to its growing economy
What’s more, Shanghai’s world-class infrastructure has an extensive public transit system, two international airports, and the world’s busiest container port. This makes properties well-connected and attractive to real estate investors and tenants.
A Cosmopolitan Lifestyle
Shanghai is an exciting, global city with a vibrant food scene, nightlife, arts, and culture. This appeals to residents and tourists, fueling the hospitality industry and short-term rental market.
While property prices in Shanghai are high, the city offers solid opportunities for buy-to-let investments and short-term rentals targeting business and leisure travellers. Luxury properties and those infamous central districts tend to see the most substantial returns.
With a booming economy, housing shortage, and cosmopolitan lifestyle, Shanghai demonstrates the enormous potential for property investment. Although risky, the possible returns are worth considering, especially if you go in with realistic expectations and a long-term strategy.
Shanghai’s property market looks set to continue its upward trajectory, so now may be the time to tap into this opportunity.
#8. Sydney, Australia: Solid Fundamentals and Spectacular Lifestyle
Population: 5,121,000
Average Rental Yields: 2.87%
Average Property Price: £610,596
Sydney, like other major cities, offers strong potential for property investments. Sydney offers the potential for solid capital growth and rental returns. It offers one of the best real estate markets in the world given the following:
Robust Economic Fundamentals
Sydney has a sturdy, diversified economy based on sectors like financial services, tourism, education, and real estate. Australia, as a country, has experienced decades of uninterrupted economic growth, and New South Wales (where Sydney is the capital) contributes 30.2% of the country’s GDP.
What’s more, house prices and rents have steadily increased, and demand for property remains high, especially in desirable inner suburbs close to the city centre and beaches.
Stunning Natural Beauty
Sydney is blessed with a spectacular natural setting, situated on the shores of the Pacific Ocean and built around its stunning harbour. You have access to over 70 beaches, national parks for bushwalking, and the scenic Blue Mountains just 90 minutes away.
The pleasant Mediterranean climate, with warm summers and mild winters, means residents can enjoy an outdoor lifestyle most of the year, driving demand for the city’s real estate.
High Quality of Life
Sydney frequently ranks highly in surveys of the world’s most liveable cities. It offers an excellent healthcare system, low crime rates, clean air and water, and advanced infrastructure.
Additionally, career and business opportunities and a vibrant food, arts, and cultural scene abound. The transport links are also very efficient both within the city and to the rest of Australia.
While property prices in Sydney aren’t low, if you can afford to invest here, the potential for solid capital growth and rental returns—combined with the desirable lifestyle on offer—make it an appealing choice. Compared to other global cities, Sydney still appears to offer good value for money.
For the best opportunities, look for well-located apartments or townhouses, especially if they have water views or are within walking distance of amenities.
The Best Place to Invest in Property in the World: The Final Verdict
Following an in-depth comparison of numerous metrics and facts across many locations, the final verdict is in. London stands out from the crowd based on all the factors determining a prime spot for property investment — economic stability, population growth, infrastructure, tourism appeal, and more.
The English capital boasts a highly skilled workforce, extensive infrastructure, and prestigious global status. These factors contribute to the city’s enduring appeal and ensure that demand for property, especially in desirable central locations, consistently outstrips supply.
Consequently, property prices and rental yields remain robust, providing a reliable source of income and potential capital appreciation. Furthermore, London’s tax regime for overseas investors is highly favourable.
The UK doesn’t restrict foreign property ownership and applies competitive rates to capital gains and rental income taxation. This investor-friendly environment, coupled with the stability of the British pound, minimises currency risks for international investors.
At Baron & Cabot, we understand the intricacies of the London property market, as well as other prime UK locations like Birmingham, Manchester, and Derby. For those interested in exploring vibrant opportunities beyond the capital, particularly in burgeoning markets, Manchester real estate investment offers a gateway to one of the UK’s most dynamic property landscapes.
Our team of experienced property investment specialists possesses in-depth knowledge of the local landscape and can guide you through every step of the investment process.
From identifying lucrative opportunities to evaluating risks and financing options, property management, and devising successful exit strategies, we offer a comprehensive range of services tailored to your investment goals.
If you need more clarity on why you should focus on the aforementioned real estate markets, we suggest you check out these insights on the UK property market
Partnering with Baron & Cabot is vital to unlocking beneficial real estate investment opportunities if you seek to purchase property in the UK. Contact us today to discuss your real estate investment goals and embark on a successful investment venture in the vibrant capital of the United Kingdom.
Frequently Asked Questions on the Best Place to Invest in Property in the World
Which country is best for investment in property?
The United Kingdom—home to burgeoning cities like London, Birmingham, Manchester, and Derby—is the premier destination for property investment, offering a stable market, strong demand, and a thriving economy.
The country attracts local and international investors as a global financial hub, resulting in growing property prices and great rental yields. Partnering with the property experts at Baron & Cabot ensures a seamless and successful real estate investment journey in this centre of excellence.
Which country is best for investment property?
The United Kingdom, particularly London, is one of the top choices for property investment due to its stable market, high demand, and favorable tax policies for foreign investors. This stability and resilience make it a prime destination for investors seeking secure, high-return opportunities.
Which country is best for real estate investment in 2024?
London, UK, and New York, USA, are premier locations for real estate investment in 2024, thanks to their robust economies, diverse markets, and consistent demand for housing. Both cities offer strong potential for rental income and long-term capital appreciation, making them ideal for global investors this year.
Where is the highest ROI in real estate?
Dubai, UAE, provides some of the highest ROI in real estate due to its tax-free investment environment, high rental yields, and growing demand from its global business and cosmopolitan appeal. Dubai offers high rental returns alongside minimal property-related taxes.
What country has the highest ROI on property?
Dubai has the highest ROI on property, with rental yields reaching up to 8.76% in select areas. Additionally, Shanghai, China, presents high ROI potential due to a strong economy, rising housing demand, and limited supply, driving up property values and rental rates.
What is the most profitable property to invest in?
The most profitable property to invest in can vary depending on many factors, such as location, market conditions, and personal investment goals. However, at Baron & Cabot, we strongly believe in the potential of rental properties.
These properties can provide investors with a steady income stream while also offering the prospect of long-term capital gains as property values increase over time. Our expertise lies in this niche, and we have a proven track record of helping our clients navigate the rental property market to maximise their returns. So, if you’re considering property investment, rental properties are a highly profitable option to look into.
If you’ve read this article, it’s likely that you’re considering the best place to invest in property in the world, or you’re already an investor. We hope this guide has provided you with a little more insight into the global market as it stands at the time of writing.
Do your due diligence, find the suitable investment for your needs and risk tolerance, and you’ll be well on your way to becoming a savvy global property investor.
And if you’ve decided to go with our top-choice location—London—we can help make your investment dreams a reality at Baron & Cabot. Check out some of our listings across multiple UK locations, or contact us to get started.
