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:

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:

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:

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:

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:

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:

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:

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:

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.