5 Countries Where Real Estate Is Surprisingly Affordable

Want to build wealth like the millionaires, but feel priced out of the market? The size of the worldwide rental market in 2021 is estimated to be worth USD 1.87 trillion, indicating the importance of this business. (source) But what if I told you that millionaires aren’t just buying rental properties in exclusive locales? They’re investing in countries with affordable markets, and you can too. The opportunity to enter the real estate market, once deemed inaccessible, is now within reach. In this article, we’ll explore five countries where millionaires are making their mark in the rental property sector.  These countries offer affordable options with promising returns, allowing even novice investors to dip their toes into the lucrative arena of real estate.

1. Canada

Canada’s real estate market presents promising opportunities for investors, with stable housing conditions and room for growth.  The country’s average rental yield of 5.46% and an average property price of $581,000 (794,000 Canadian Dollars) make it an attractive destination for those seeking steady returns.  Cities like Toronto and Vancouver offer high-value markets with premium properties and lucrative rents. Meanwhile, emerging markets in Ottawa, Montreal, and Calgary provide more affordable options with significant growth potential.  These cities boast diverse investment opportunities across various provinces and territories, appealing to both domestic and international investors.   

2. Germany

Germany’s real estate market offers compelling opportunities for investors, driven by its status as Europe’s largest economy and rapidly growing cities.  With an average rental yield of 3.12% and property prices ranging from £4,435 ($4745) to £9,760 ($10,400) per square meter, Germany provides a favorable environment for investment.  Cities like Berlin, Munich, and Frankfurt stand out as hotspots for real estate investment, offering stable rental demand and attractive long-term prospects.  Tax incentives, including deductions for depreciation and renovation expenses, further reduce investment costs and enhance profitability for investors.  For astute investors hoping to seize profitable possibilities, this industry offers stability, growth, and appealing returns due to its expanding population and robust economy.

3. UAE

The UAE’s real estate market is renowned for its glitzy skyscrapers, higher returns, and tax-free environment, making it a premier destination for investors worldwide.  The UAE presents attractive prospects for individuals looking for high yields with little risk. In Dubai, the average rental yield stands at 9.19%, coupled with an average property price of $280 (1000 UAE Dirham) per square foot. Prime areas like Dubai Marina and Jumeirah Lake Towers attract investors with their high rental yields for residential properties. Additionally, the commercial real estate sector also presents attractive investment opportunities. The tax-free status of the UAE maximizes profitability for investors, with no property taxes and lower operating costs.  With its modern cities, thriving economy, and tax-free environment, the UAE offers investors a unique blend of luxury, lifestyle, and financial rewards in the real estate sector.

4. United Kingdom

The United Kingdom’s property market boasts a stable economy and strong property market, making it an attractive destination for investors.  The UK offers a variety of chances to earn rental income, with average rental yields of 5.2% in the South and 7.4% in the North. Additionally, with an average property price of more than $305,000 (246,000 pounds), investors can also achieve capital appreciation in the UK market. Investing in desirable locations such as Manchester, Sheffield, and Liverpool is appealing. An increasing population and a shortage of available housing are two factors that support these areas’ property markets’ resiliency. Regional variations in rental yields provide options for investors, with higher yields in the North due to regional economic growth and local housing demand.

5. France

France’s property market boasts a strong rental market with an average yield of 6% and an average property price of around  $10000 or £9,500 per square meter in Paris.  Cities with strong rental income and prospects for capital growth, like Paris and Nice, are well-liked locations for real estate investment.  Paris, the capital city, stands out with its rich history, cultural heritage, and strong demand for rental properties. Nice, located on the French Riviera, offers a blend of natural beauty and vibrant culture, attracting tourists and investors alike. France’s stable economy and accessible property ownership laws make it an attractive destination for foreign investors seeking low-risk investment opportunities.