The country with the highest return on housing investment has been identified

In a comparison covering 60 countries and regions, Portugal took the top spot with an estimated annualized return of 14.55 percent.

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The country with the highest return on housing investment has been identified

In a study comparing the housing performance of 60 countries and regions between 2015 and 2025, dollar-based price appreciation and current gross rental yields were evaluated together. According to the results, the highest estimated annualized total return was calculated in Portugal at 14.55 percent.

It was noted that all of the markets in the top 10 are located in Europe or are transcontinental. In the ranking, estimated annualized returns ranged between 11.16 percent and 14.55 percent.

TOP 10 RANKING

In the study, the estimated total return was created by evaluating dollar-based price change and current gross rental yield together.
Rank	Country	Estimated annualized total return	Current gross rental yield
1	Portugal	%14.55	%4.29
2	Hungary	%14.41	%4.82
3	Russia	%13.52	%5.77
4	Lithuania	%12.64	%5.54
5	Iceland	%12.16	%5.41
6	Czechia	%12.15	%3.39
7	Bulgaria	%12.01	%4.27
8	Latvia	%11.39	%7.20
9	Romania	%11.25	%5.87
10	Slovakia	%11.16	%4.49

View of colorful historic houses and a bridge by the river in Portugal. — Portugal took the top spot on the list with an estimated annualized total return of 14.55 percent.

Portugal was followed by Hungary with 14.41 percent. While the difference between the two countries remained at 0.14 percentage points, the estimated annualized total return for Russia, in third place, was calculated at 13.52 percent.

View of historic buildings, a tram, and the riverside in Hungary. — Hungary is in second place with an estimated total return of 14.41 percent.

City view consisting of modern residential blocks and green spaces in Russia. — Russia ranked third with an estimated annualized total return of 13.52 percent.

Among the countries in the top 10, Latvia's gross rental yield stood out as the highest rate at 7.20 percent. However, the study showed that rental yield alone does not determine the ranking; the dollar-based housing price change over the past decade also influenced the result.

View of a historic street, buildings with colorful facades, and a cobblestone road in Lithuania. — Lithuania ranked fourth with an estimated total return of 12.64 percent.

Colorful houses, a church structure, and mountain scenery in Iceland. — Iceland was fifth with an estimated annualized total return of 12.16 percent.

Historic structures, a bridge, and city view by the river in Czechia. — Although the gross rental yield in Czechia was the lowest in the top 10 at 3.39 percent, the total return was calculated at 12.15 percent.

Residential buildings, trees, and mountain scenery in Bulgaria. — Bulgaria ranked seventh with an estimated total return of 12.01 percent.

Ornamental historic building facades and balconies in Latvia. — Latvia became the country with the highest rental rate in the top 10 with a gross rental yield of 7.20 percent.

View of a wide street, apartment buildings, and historic architecture in Romania. — The estimated annualized total housing return for Romania was calculated at 11.25 percent.

Historic castle, church, and red-roofed buildings in Slovakia. — Slovakia ranked 10th on the list with an estimated total return of 11.16 percent.

The comparison also revealed that large and well-known housing markets are not always at the top of the list. The USA ranked 19th with an estimated annualized total return of 9.70 percent; the UK ranked 35th with 6.87 percent, and Germany ranked 42nd with 6.51 percent.

Dense city skyline with high-rise buildings in the USA. — The USA remained outside the top 10 with an estimated annualized total return of 9.70 percent.

At the bottom of the list is Egypt with an estimated annualized total return of 0.89 percent. Macau ranked 59th with 1.25 percent, and Qatar ranked 58th with 2.67 percent.

Houses by the Nile, city skyline, and pyramids in the distance in Egypt. — Egypt ranked last on the list with an estimated total return of 0.89 percent.

Turkey is not among the 60 countries and regions included in the comparison. Therefore, it is not possible to determine Turkey's ranking in housing investment or its estimated annualized total return from this study.

Houses, a bridge, and sea view on the shores of the Bosphorus in Istanbul. — Turkey was not included among the 60 countries and regions covered by the research.

The rates in the study are considered as estimated market comparisons, not as realized net gains for investors. The calculations do not include factors such as taxes, maintenance, financing, transaction costs, and reinvestment. It is also emphasized that past performance does not guarantee future returns.

News Source: 12punto