Investment Properties: Attractive Global Cities You Might Not Have Considered 

Some property investors are hesitant to invest in foreign countries, but they can be great places to find attractive returns and add some diversity to your portfolio. For example, in 2024 rental yields for Shanghai ranged from 5.4% to 7%, considerably higher than the 2 to 4% on offer in most other markets. 

In fact, emerging markets in the Far East rank among the world’s fastest-growing real estate markets, but there are still promising opportunities to be had in stable markets in Europe and the US too. This short guide will walk you through some of the most popular cities for investment properties and what makes them so attractive. 

1. Singapore: The Singapore rental market has been bolstered by the city state’s strong economy and stable governance. Despite its small size – the population is just under six million – it is one of the world’s wealthiest and most productive countries. Its chief markets are electronic exports, medicine, petroleum, and financial services.

The residential real estate market there is strong, and the clean, modern city along with the year-round hot climate has long made it an attractive destination for digital nomads and other expats. The market is also strong on the commercial side. Multinational companies which require an Asia-Pacific base often choose Singapore, home to some of the world’s busiest shipping ports and airports. This means that office space is always in demand. 

On the supply side, the country’s small size means it is difficult to build much more, which can make it an attractive place to invest. 

1. Shanghai: China’s most populous city is an exciting metropolis that plays host to fantastic food, exciting nightlife, and plenty of arts and culture. There is strong demand from both would-be residents and tourists for places to stay there, which has driven up prices. However, the supply still seems to be far behind. 

With the city’s economy booming, Shanghai looks like an attractive prospect for a long-term investment. Economic growth and lack of supply mean that rental yields can reach as high as 7%. 

1. Dubai: Even higher rental yields can be found in this Middle Eastern oasis, even stretching as high as 10% depending on the type of property. It is an attractive destination for businesses and investors as only a maximum of 7% is paid as a flat-rate tax. That means there is no tax on capital gains, income, or wealth. 

The city’s great infrastructure, exceptional quality of life, and low crime rate mean the demand for residential properties is high too. 

1. Sydney: The rental yields in Sydney, Australia, are more in line with other global cities, but property there has seen a long-term trend of increasing house prices and rents pushed up by the country’s growing economy. Demand has stayed high in spite of these higher prices, and with the city often ranked among the world’s most liveable, it looks likely to stay that way. 

These different countries will have different regulations for renting out your property, but these do not usually complicate things so much as to make the opportunities unattractive. With good research and due diligence, there are plenty of opportunities to be found overseas in places you may not have thought about.