The real estate market continues to evolve, with rental yields varying significantly across different countries.
- Rental yields in the real estate market vary across different countries
- Gross rental yield measures annual rental income as a percentage of a property’s purchase price
- Only a few African nations are included in the ranked countries by gross rental yields, highlighting key trends in the continent’s real estate market
Gross rental yield, which measures the annual rental income as a percentage of a property’s purchase price, is a key factor for investors evaluating property markets worldwide.
As of June 2024, rental yields have been shaped by economic conditions, government regulations, housing supply, and demand.
Below is a detailed breakdown of rental yields in various countries and what makes each market attractive to investors.
Top-Performing Rental Markets according to Global property guide
| Rank | Country | Rental Yield (%) |
|---|---|---|
| 1 | South Africa | 10.15% |
| 2 | Latvia | 8.06% |
| 3 | Georgia | 7.85% |
| 4 | Ireland | 7.85% |
| 5 | Italy | 7.38% |
| 6 | Colombia | 7.24% |
| 7 | Turkey | 7.13% |
| 8 | Puerto Rico | 7.05% |
| 9 | United Kingdom | 7.03% |
| 10 | Dominican Republic | 6.74% |
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Investment Considerations
South Africa holds the highest global rental yield, while European, Latin American, and Middle Eastern countries also offer strong returns.
Economic stability, political conditions, and housing demand are key factors shaping these yields.
- Economic stability – Countries with strong economies, like Austria and Belgium, provide low-risk investment environments but may offer lower yields.
- Tourism and expatriate demand – Markets like Costa Rica and Croatia thrive due to short-term rental opportunities driven by tourism.
- Urbanisation and population growth – Cities in Colombia and Brazil benefit from increasing urban migration, sustaining demand for rental properties.
African rental market
Among the countries ranked by gross rental yields, only a few African nations are included. Their positions highlight key trends in the continent’s real estate market, including investment potential, risk factors, and economic influences. Here’s a closer look:
1. South Africa – 10.15% (Rank: 1st Overall)
- South Africa’s high yield is driven by strong rental demand, a growing urban population, and relatively low property prices compared to rental income.
- However, economic instability, high unemployment, and safety concerns may deter some investors.
2. Egypt – 5.90% (Rank: 21st Overall)
- Egypt offers moderate-to-high rental returns, supported by its large population, growing tourism sector, and affordability of properties.
- Cairo and Alexandria remain key real estate hubs, with rental markets benefiting from domestic migration and expatriate demand.
3. Tunisia – 5.20% (Rank: 32nd Overall)
- Tunisia’s rental yield is slightly lower than Egypt’s but remains competitive in North Africa.
- The market benefits from a stable rental demand in urban areas like Tunis and Sousse, where property prices are still accessible.
4. Morocco – 4.41% (Rank: 44th Overall)
- Morocco’s rental yields are moderate, reflecting a stable but slow-growing real estate market.
- The country benefits from strong tourism, an expanding middle class, and government-backed infrastructure projects.
Key Observations on African Rental Yields
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- South Africa Dominates: It stands out as the only African country offering rental yields above 10%, making it an attractive destination for property investors.
- North African Markets Offer Stability: Egypt, Tunisia, and Morocco present moderate rental yields (4.4%–5.9%), reflecting relatively stable real estate markets and strong urban demand.
