Best countries to invest in real estate

For another blog of mine, I’ve been doing research into this topic for years now, and I’ve examined over a hundred countries so far.

The main factors I’ve taken into account here are rental yield, the visa situation, what you can actually own as a foreigner, and other important factors such as the price, the economy, crime rates etc.

 Now, as you can imagine, being a good country to invest in real estate does not mean it’s a good country for other flags, such as residence, banking or even living in.

Keep that in mind, the countries we’re about to discuss are on this list solely for their real estate possibilities.

Here’s the top 10 based on their potential for profit, with their average potential rental yields:

1. South Africa: 11.53%
2. Kazakhstan: 10.95%
3. Georgia: 9.49%
4. Mongolia: 9.25%
5. Dominican Republic: 9.21%
6. Panama: 9.21%
7. United Arab Emirates: 8.46%
8. Indonesia: 8.22%
9. Colombia: 7.86%
10. Costa Rica: 7.63%

All of those have a real estate yield of over 7.5%, but vary wildly regarding their can-foreigners-own-land policies, safety, growth potential, cost of the real estate, and whether they are pro land lord or pro tenant.

Georgia borders Russia, so I’ll exclude it on the very real danger this presents.

These are the ones where you can actually own land:      

• South Africa
• Dominican Republic
• Panama
• Colombia
• Costa Rica

If we look at their economic growth potential, only Dominican Republic, Panama and Costa Rica can be considered high.

Real Estate Cost

How much does real estate actually cost? Here are the countries based on their price per square meter:

1. Mongolia ~ $1,250 / m²
2. Kazakhstan ~ $1,350 / m²
3. Indonesia ~ $1,650 / m²
4. South Africa ~ $1,900 / m²
5. Colombia ~ $2,350 / m²
6. Dominican Republic ~ $2,400 / m²
7. Panama ~ $2,750 / m²
8. Costa Rica ~ $2,900 / m²
9. United Arab Emirates ~ $3,800 / m²

Which ones are actually interesting?

For me, I would say that only these are interesting:

• Dominican Republic
• Panama
• Colombia
• Costa Rica

Why are these so interesting?

1. High Yields: All four fall in the top-tier global yields range (7.63% to 9.21% gross yield).
2. Accessible Entry Prices: They offer reasonable per-sqm baseline costs for prime urban/expat inventory compared to developed markets.
3. Full Foreign Land Ownership: Unlike the Philippines, UAE, Indonesia, Kazakhstan, or Mongolia, all four grant foreigners direct fee-simple / freehold title to land (with Costa Rica’s only limit being the 150m coastal concession zone).

Other options

Now, if we look at countries with lower rental yields (but still great), there are 4 more great options based on the other factors:

1. Paraguay (6.9% yield): Full direct foreign freehold land ownership, low entry costs ($1,100–$1,400/m²), and strong GDP growth (4%+).
2. Uruguay (6.5% yield): Full direct foreign freehold land ownership and top-tier regional safety, though real estate is significantly more expensive ($2,800+/m²).
3. Philippines (5.1% yield): Restricted to condo units under 40% foreign quotas (no direct land ownership).

Honorable mentions go to:

• Peru (5.9% yield): Direct freehold allowed.
• Malaysia (5.3% yield): Foreigners can buy land/freehold, but subject to minimum purchase price thresholds (e.g., MYR 1 million+).
• Thailand (5.0% yield): Land restricted; condo ownership allowed under 49% foreign quota.