Let’s explore which country offers the best real estate opportunities in 2025.
In recent years, Bali, Greece, and the UAE have become top real estate investment destinations, garnering so much popularity that local governments have been prompted to take action:
🔵 Indonesia is considering a law to halt the construction of new hotels, villas, and resorts in Bali’s most popular tourist areas for the next 3–5 years.
🔵 Greece has raised the investment threshold and tightened the rules for the "Golden Visa" program, although some loopholes remain.
🔵 The UAE is grappling with a surge in fraudulent deals, with non-existent properties being marketed at suspiciously low prices.
Despite these regulatory changes, foreign investors remain undeterred. In Greece, for example, alongside the raised investment threshold, a new option has emerged: purchasing properties converted from commercial to residential use, which provides access to the most affordable residency program in Europe.
Recently, an experienced investor asked us: “I see plenty of ads for Bali and the UAE—why do you recommend Greece?”
We have several reasons. But before giving a definitive answer, let’s look at the market data, as we always rely on solid numbers.
In 2024, Bali’s real estate market showed steady growth, continuing to attract global investors. International tourist numbers are nearing pre-pandemic levels, and authorities are optimistic that 2024 will set a record with over 6 million visitors expected.
The current strategy to attract long-term residents, such as digital nomads, has fueled a boom in the residential villa market. Over the past year, property prices on the island have increased by 10%, remaining more affordable compared to other prime resort destinations.
Rental yields on Bali real estate average 5–10% annually. Indonesia also offers visas for investors, making property purchases particularly appealing for long-term residents.
However, according to Global Property Guide, some areas, like Denpasar, saw property values drop slightly (by over 2%) in 2023, underscoring the need for careful investment choices.
In 2024, the completion of major infrastructure projects, such as the Gilimanuk–Mengwi toll road, is expected to improve the island's accessibility, further enhancing its appeal for investors.
The Bali real estate market in 2024 offers diverse opportunities for investors, blending strong rental yields with growth potential. While some claim returns as high as 15% annually, the actual post-tax yield rarely exceeds 7–8%.
A key consideration is the leasehold land status, common for most properties. This arrangement requires lease renewal every 25 years, causing the property to lose value annually, equivalent to the ground rent. The island also faces challenges such as limited infrastructure and underdeveloped roads, which can affect investment prospects.
In Bali, most real estate is offered under leasehold agreements, granting usage rights for a specific term, typically 25–30 years. After this period, the lease must be renewed, which can involve additional expenses and legal complexities. The absence of a guaranteed renewal or changes in lease terms can lead to a decrease in property value as the lease expiration approaches.
Additionally, the exit strategy in Bali can be challenging due to significant taxes upon property sale, potentially amounting to nearly 60% of the property's value:
While Bali’s rental yields can be attractive, the loss of property value due to leasehold agreements and high sales taxes have diminished its appeal for us. On the bright side, the market offers flexible payment options and multiple ways to optimize rental tax liabilities.
The UAE real estate market in 2024 has shown consistent growth, driven by strong demand from global investors. For example, investments from China into luxury projects by Emaar Properties doubled, accounting for 7% of the developer’s total transactions. Indian investors are also heavily active, particularly in Dubai’s real estate sector.
Among foreign buyers, apartments are the most popular, making up 78% of all transactions in July 2024, with 12,651 deals recorded. Villas are in demand for personal use, with 2,336 units sold in the same month for a total value of AED 14.3 billion. Additionally, interest in commercial properties is growing, with these assets favored for business operations and rental income.
In 2024, alternative regions like Ajman, Sharjah, and Ras Al Khaimah gained popularity, offering more affordable options while staying close to Dubai. Abu Dhabi is also increasingly seen as a promising investment hub, with growing demand from international buyers.
The UAE real estate market is primarily geared toward off-plan property sales rather than high rental returns. This focus explains the modest average ROI of around 5%. Additionally, the short-term rental market struggles to compete with hotels, leaving most properties better suited for long-term leases.
While the market offers excellent opportunities for capital appreciation and residency options, investors should carefully consider their goals—whether it’s rental income, resale profits, or a personal residence—to ensure alignment with the market’s unique dynamics.
In 2024, the Greek real estate market showcased significant growth, particularly in major cities and tourist regions. According to the Bank of Greece, apartment prices increased by an average of 7.8% year-on-year in the third quarter of 2024, a slower pace compared to the 13.8% growth observed during the same period in 2023.
Most investors focus on apartments in Athens and Thessaloniki, villas on the islands, and commercial properties in key locations.
Experts predict that property prices in Greece will continue to rise in 2025, particularly in high-demand areas like central Athens and its suburbs. However, the rate of growth is expected to slow compared to recent years. Foreign investors are likely to remain interested, especially in residential and tourism-focused properties.
Overall, Greece remains a compelling destination for real estate investments, offering diverse opportunities for both income and long-term value growth.
Whether you’re looking for consistent growth, rental income, or strategic benefits like residency, Greece’s real estate market provides an attractive balance of stability and opportunity for 2025.
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