Top 7 Countries With the Highest Rental Yields in 2025
As global investment trends shift in 2025, rental properties have again become one of the most stable and profitable asset classes for investors. The combination of tourism recovery, mass migration, remote-working culture, and rising housing shortages has led to a surge in rental demand across multiple regions. This article highlights the top seven countries where investors can expect the highest rental yields in 2025. We examine market fundamentals, entry prices, long-term appreciation potential, and overall market stability.
Why Rental Yields Matter
Rental yield remains one of the most important indicators for property investors. It shows what percentage of the property’s value is earned annually through rental income. High yields typically indicate strong demand, low vacancy rates, and a healthy balance between property prices and rental costs.
Key factors influencing yields in 2025:
- Growing demand for short-term rentals due to tourism recovery
- Increase in expat communities and digital nomads
- Limited housing supply in many developing markets
- Government incentives for foreign investors
- Shift toward remote work and long-stay rentals
1. Indonesia (Bali) — 10% to 15%
Bali remains one of the strongest markets globally for rental income. Its short-term rental economy is booming due to year-round tourism, increasing numbers of remote workers, and favorable investment laws for foreigners through long-term leases (Hak Pakai).
Why Bali tops the global list:
- High occupancy rates, often above 80%
- Daily rental prices increasing each year
- Strong demand for villas and boutique units
- Relatively low entry costs compared to Western markets
2. Turkey — 7% to 12%
Turkey has become a magnet for investors seeking affordable properties with high ROI. Cities like Antalya, Istanbul, and Alanya attract both tourists and long-term residents. The devaluation of the Turkish lira has made real estate extremely accessible for foreign investors, creating high rental returns.
Market advantages:
- Affordable property prices compared to Europe
- Growing international community
- Strong tourism flows, especially in southern regions
- High long-term rental demand
3. Mexico — 8% to 13%
Mexico’s real estate market is booming thanks to tourism, digital nomads, and retirees from the United States and Canada. Cities like Tulum, Playa del Carmen, and Mexico City offer exceptionally high yields, especially for short-term rentals.
Why investors choose Mexico:
- Strong North American tourism
- High Airbnb demand
- Attractive tax policies
- Wide range of affordable coastal properties
4. UAE (Dubai) — 6% to 10%
Dubai remains one of the world’s most profitable and stable markets for rental investors. Its tax-free system, large expat population, and continuous global events keep rental demand extremely high. Both short-term and long-term rentals generate excellent returns.
Key strengths of Dubai:
- Tax-free rental income
- High occupancy rates year-round
- Strong property appreciation trends
- Advanced property management technologies
5. Thailand — 6% to 9%
Thailand’s rental market has recovered strongly since 2023, with Bangkok, Phuket, and Pattaya becoming major investment centers. Tourists, expats, and long-stay visitors provide consistent demand for rental housing.
Main benefits:
- Affordable condos with strong liquidity
- Growing tourism industry
- Low maintenance costs
- Attractive lifestyle destination
6. Portugal — 5% to 8%
Even though Portugal tightened some investment rules, its rental yields remain high, especially in Porto, Braga, and Madeira. The country attracts a steady stream of digital nomads and long-term foreign residents due to its tax benefits and sunny climate.
Highlights of the market:
- High-quality long-term tenants
- Stable EU market
- Affordable mortgages
- Strong appreciation potential
7. Georgia — 7% to 11%
Georgia has become one of the fastest-growing investment destinations in Eastern Europe. Tbilisi and Batumi offer high yields, low taxation, and easy property registration for foreigners. Tourism continues to grow rapidly, especially in Batumi.
Why investors love Georgia:
- Very low taxes
- Fast property registration process
- Strong construction boom
- Growing tourism year after year
Comparison Table of Top-Yield Countries in 2025
| Country | Yield Range | Main Strength |
|---|---|---|
| Indonesia (Bali) | 10%–15% | Strongest Airbnb market globally |
| Turkey | 7%–12% | Low entry prices |
| Mexico | 8%–13% | High demand from U.S. travelers |
| UAE (Dubai) | 6%–10% | Zero tax on rental income |
| Thailand | 6%–9% | Strong tourism |
| Portugal | 5%–8% | Stable EU environment |
| Georgia | 7%–11% | Low taxes and growing demand |
Conclusion
The global rental property market in 2025 offers extraordinary opportunities for investors seeking high yields, strong occupancy rates, and long-term appreciation. Whether your goal is short-term rental income, stable long-term tenants, or portfolio diversification, these seven countries stand out as the most advantageous options. From Bali’s booming villa market to Dubai’s tax-free system, each destination provides a unique combination of affordability, profitability, and security.