Best Countries to Invest in Real Estate in 2025: Hit the Jackpot!

Dubai, home to the tallest skyscraper, Burj Khalifa, is famous for its beautiful nightlife consisting of various mesmerizing events and attractions. The country tops the list of the most popular countries for investment due to the ultra-luxurious lifestyle provided to its citizens. Dubai is the global financial hub of opportunities and investment. This destination is widely considered a powerhouse for real estate investments, mainly because of the strategic location of its communities. Many communities and areas are connected through seamless connectivity in the form of exceptional highways, metro, and buses. Moreover, Dubai has also announced the launch of air taxis by 2026, further providing efficient and sustainable transportation and bypassing traffic congestion. Such initiatives and thoughtful planning attract the buyers and investors to invest in this capital.

Another major factor making Dubai the best investment opportunity in 2025, as compared to other countries in the world, is the high return on investments and capital appreciation in the city. Dubai records a high ROI, especially in prime locations like Palm Jumeirah, ranging from around 4% to 7% and more than 5% in Downtown Dubai. Another feature that attracts people to invest is the forward-thinking mindset of Dubai’s rulers, evident by the Dubai Economic Agenda 2033 (D33) and the Dubai 2040 Urban Master Plan.

TOP PERFORMING AREAS IN DUBAI IN Q1 2025

Discover the top performing areas in Dubai in the first quarter of 2025 in terms of the sales transactions and sales value

In Mexico specifically, the top priority for investment is Mazatlán, located on the western Pacific coast, and it is not as overdeveloped as some other parts of Mexico. This area has easy access to the United States, both by air and road.

The prices in this market are so reasonable, and the potential rental yields are robust, considering this a pretty well-developed market.

Another Mexican market that holds up well and is a premium choice is Playa del Carmen, situated on the opposite side, along the Caribbean Sea in the southeastern state of Quintana Roo, Mexico. The complication in Playa del Carmen is finding the right kind of property. And the newest construction is already far from the main center of action, implying that one should look at resales more than pre-construction projects. But it also means that prices are a little bit higher. Still, the net yield possibilities can go over 8%, which gives an upper end in rental yields of a long-term target range between 5 and 8%.

Montenegro has been on the real estate watch list of many people for years. Prices of properties have significantly increased by a fair amount in the last 3 or 4 years, and they have a lot of room to continue to increase. Net rental yields in Montenegro,  even with the high prices, remain strong. Between becoming a hotspot for wealthy people from Eastern Europe, Turkey, and even Saudi Arabia, and being the next country to join the European Union.

Areas like Budva, Kotor, and Tivat are popular coastal locations and tourist hotspots. In Montenegro, foreigners can invest in various kinds of real estate properties, including apartments, villas, and even land for development. Rental yields in these areas can range from 5% to 8% annually. The country has an emerging market experiencing growth, with a projected 5.50% annual growth rate between 2025 and 2029.

For over ten years, Portugal has been referred to as the number one retirement haven in the world. Many people still treat Portugal as a great real estate investment destination. For living, it's fantastic. It is one of the best countries in Europe for investing, but it is becoming harder to find good deals. About ten years ago, Portugal made great returns on appreciation and rentals, providing investors an opportunity to take advantage of these investments. Now, though, it requires a bit more effort to find the areas with good yields, but we can still find those in the hot zones.

The better-priced properties are in the less-traveled locations, which are, although a bit less interesting from a net yield perspective. Portugal is experiencing an expansion of international buyers beyond mostly British people. However, the development is focused on higher-end properties for the international market, so overall, there has been very little to no development in the last ten years that targets the Portuguese market, which leaves a gap in inventory that has to be figured out.

As opposed to Portugal, Spain offers many regions and opportunities that are hard to narrow down. When it comes to purchasing real estate, so many places in Spain are great for establishing a high standard of living. But for those looking for excellent yields, Spain may not be that much of a great option as compared to Dubai, as it has plenty of areas that generate good returns and rental yields. But still, one can focus on areas that are not overbuilt already and attract a non-travel package type of tourist, such as the areas around Alicante and Cartagena.

However, the geopolitical factors and economic uncertainty can cause fluctuations, leading to huge disturbances in the overall real estate market. Moreover, with the dismissal of the former Golden Visa program, which granted residency for investments of at least €500,000, Spain is no longer a premium and benefitting country for real estate investments.

Greece has appeared on many Investment Real Estate Lists for 2025. Prices in Greece remain very affordable compared to other Mediterranean options, but the rental yields and capital appreciation are not as robust and lucrative as compared in Dubai, making the country less profitable for real estate investors. On the other hand, Dubai is a country that offers huge returns on investments, especially in the prime locations. The smaller islands of Greece are scary to invest in due to the prices and potable water concerns generally associated with small islands.

There are a lot of uninhabited islands in Greece, so the investors need to be careful in their selection of properties to invest in. They cannot just randomly hold up any beautiful beachfront property that they saw on a website. On the mainland, on the other hand, Thessaloniki, which is Greece's second largest city, holds some fine opportunities.

Whichever country you choose to pool in your resources in 2025, you must keep in mind several factors, such as good prices, capital appreciation, and the future potential of the market, but in the end, one of the most important factors that should not be ignored is your personal preferences and comfort zone. If you are looking for the best country with high returns on investment and future capability for growth and development, then, no doubt, Dubai has to be the top pick for you.