Global league table reveals the world’s best residential property returns

A new global league table for residential property investment has placed the Republic of Ireland as its top tip for 2024.

This comprehensive index evaluates the investment attractiveness of residential property markets in 50 countries. European nations joining Ireland in the spotlight are Cyprus (2nd globally), Malta (6th), Bulgaria (10th), and Portugal (12th), each offering distinct investment advantages.

Ireland's position at the top of this new index reflects the country's resilient property market, the strong and efficient legal system, and a booming economy. 

A housing construction shortfall following the property and banking crisis 15 years ago has led to fundamental constraints in supply, resulting in rising house prices and higher rents. Ireland’s gross rental yield of around 8.5 per cent is third highest in the world and the highest in Europe. 

The median dwelling price in Ireland has seen a Compound Annual Growth Rate (CAGR) of about 7.0 per cent over the last decade, reaching a median price of €323,000 in October 2023.

Mark Wilson of the new index - Housearch - says :"In many countries residential property markets are now cooling down due to higher interest rates, but our Investment Index offers a view of where the investment opportunities in the coming year look most promising. 

“Ireland stands out for its lower-risk high rent yields combination even after rental income being adjusted for local rental income tax. 2024 brings a good chance to buy in the relative dip in real prices growth prompted, among other factors by the cancellation of the ‘golden visa’ program for non-EU foreigners. 

“I would also recommend moving fast as the Irish government, tackling the housing affordability issue, may look into following the examples of other countries, such as the UK, which has recently introduced an extra stump duty for foreigners, and Canada which starting from 2023 imposed a ban on foreign investment in residential property.”

Cyprus, ranked second in Europe, with average gross rental yields of about 5.0 to 6.0 per cent. Other top European markets include Malta, Bulgaria, and Portugal. 

Portugal, in particular, has seen a steady rise in housing prices, with an 8.17 per cent increase in dwelling prices in the year to October 2023, according to the Instituto Nacional de Estatistica.

Housearch is a leading global online platform specialising in residential properties, primarily focusing on new builds sold directly by developers or builders. Launched in 2022 It features over 4,000 new properties in some popular investment destinations like the UAE, Turkey, and Thailand.

The Housearch Investment Index is designed to offer insights into the opportunities and risks of investing in foreign property markets to private buy-to-rent investors. 

The complete Index and detailed country rankings are available on housearch.com/markets/.