International Real Estate Yield Forecast 2026: Rental Returns by Market
Last updated: August 2026
Rental yield is one of the most useful numbers for comparing international property markets.
It is also one of the easiest numbers to misuse.
A country showing a 7% average gross rental yield is not automatically a better investment than one showing 5%. Property prices, taxes, management costs, vacancy, currency risk, regulation and future housing supply can completely change the result.
This international real estate yield forecast 2026 compares selected global markets using current gross rental yield data together with housing-price trends, rental conditions and market risks.
The figures below should be used as a starting point for market comparison, not as a prediction of what one particular property will earn.
Table of Contents
International Real Estate Yield Forecast 2026: Selected Markets
Current research suggests the following approximate average gross residential rental yields across selected international property markets:
| Market | Approx. Gross Rental Yield | 2026 View |
|---|---|---|
| Turkey | 7.3% | Higher yield, higher inflation and currency risk |
| Georgia | 7.4% | Attractive headline yield, smaller and less liquid market |
| Italy | 6.6% | Interesting yield differences between cities |
| Thailand | 6.5% | Attractive rental potential, ownership structure requires attention |
| Spain | 5.4% | Strong demand but rapidly rising property prices |
| UAE | 4.9% | Strong market activity, yields vary substantially by emirate and area |
| Greece | 4.4% | Continued price growth with moderate average yields |
| Portugal | 4.3% | Strong price growth has compressed yields in expensive locations |
These are gross market averages, not expected net returns.
They do not account for taxes, management, maintenance, vacancy, financing or purchase costs.
The yield data is based on current international residential rental research from Global Property Guide, which compares asking purchase prices and rents across multiple cities in more than 80 countries.
For any property you are considering, calculate the return separately using actual local rent and total acquisition cost.
What Does the 2026 International Rental Yield Data Tell Us?
One pattern is immediately visible.
The highest-yield markets are not necessarily the lowest-risk markets.
Countries offering higher gross rental yields may also expose foreign buyers to greater:
- inflation
- currency volatility
- economic risk
- regulatory uncertainty
- resale risk
- market liquidity risk
Meanwhile, mature European markets may offer lower headline yields but potentially stronger legal frameworks, deeper resale markets and more established mortgage systems.
This is why an international real estate yield forecast should never be read as:
highest percentage = best country
The percentage is only one part of the decision.
Spain Rental Yield Outlook 2026
Spain remains one of the most active property markets for both domestic and international buyers.
Average gross residential rental yields are currently around 5.4%, although the difference between cities and property types is substantial.
Some locations can produce yields above the national average while premium areas may offer considerably lower income relative to purchase price.
The more important development in 2026 is the speed of property-price growth.
Spain’s National Statistics Institute reported that house prices increased 12.9% year-on-year in Q1 2026.
New-build prices increased 9.1%, while existing-home prices increased 13.5%.
You can follow official Spanish house-price data through the Instituto Nacional de Estadística.
At the same time, Spain’s official Housing Rental Reference Index increased by 2.44% annually in June 2026, considerably more slowly than house prices.
That does not mean rents everywhere increased by exactly 2.44%. The index serves a specific regulatory purpose.
But the broader issue deserves attention:
when property prices rise significantly faster than rents, rental yields can come under pressure.
Spain 2026 Outlook
For foreign buyers, Spain remains attractive because of:
- large and diversified property market
- strong tourism
- significant local demand
- established resale market
- mature infrastructure
But buyers focused on rental returns should be careful about paying rapidly rising purchase prices in markets where rents cannot increase at the same pace.
In 2026, property selection matters more than simply choosing Spain.
Madrid, Barcelona, Valencia, Alicante, Malaga, Murcia and the islands can produce very different numbers.
Greece Rental Yield Outlook 2026
Average gross residential rental yields in Greece are currently around 4.4%.
Again, city-level differences matter.
Central Athens can provide considerably stronger rental yields than expensive premium neighborhoods or some smaller regional markets.
At the same time, Greek residential property prices are continuing to rise.
The Bank of Greece reported that apartment prices increased 5.7% year-on-year in Q1 2026.
During the same period:
- Athens apartment prices increased 5.2%
- Thessaloniki increased 6.4%
- other major cities increased 5.4%
- other areas increased 6.9%
Price growth therefore remains positive, but it has moderated from the higher rates recorded during 2024 and 2025.
Eurostat also reported relatively strong rental growth in Greece during early 2026.
Greece 2026 Outlook
The Greek market continues to benefit from:
- tourism
- international buyer demand
- Athens urban rental demand
- island and second-home demand
- relatively limited housing supply in some locations
However, foreign buyers should distinguish carefully between:
tourist demand
and
sustainable rental investment demand.
An island property performing well during summer is a different investment from an Athens apartment rented throughout the year.
For 2026, Greece looks more like a selective market opportunity than a country where buyers should simply purchase anything because prices have been rising.
Portugal Rental Yield Outlook 2026
Portugal’s average gross residential rental yield is currently around 4.3%.
That relatively modest yield needs to be viewed alongside strong property-price growth.
Eurostat reported that Portuguese house prices in Q1 2026 were approximately 10.3% higher than the 2025 annual average, one of the strongest increases among EU markets.
You can follow comparative European house-price and rental data through Eurostat.
When purchase prices increase rapidly, rental income needs to rise too if yields are to remain stable.
In expensive locations such as Lisbon, investors therefore need to pay particular attention to the relationship between:
purchase price
and
achievable rent.
Portugal 2026 Outlook
Portugal continues to offer:
- strong international recognition
- established tourism
- attractive lifestyle
- relatively mature legal and property infrastructure
But buyers should not confuse historical popularity with automatic investment value.
Property prices, regulatory changes and relatively compressed rental yields mean individual location and purchase price are increasingly important.
A good Portuguese property can still make sense.
An overpriced Portuguese property does not become a good investment because the country is popular.
UAE Rental Yield Outlook 2026
The UAE currently shows an average gross residential rental yield of approximately 4.9% across the markets included in international comparisons.
However, that national figure hides substantial differences between:
- Dubai
- Abu Dhabi
- Sharjah
- Ajman
- Ras Al Khaimah
and between neighborhoods within each emirate.
Dubai remains the market receiving most international attention.
The Dubai Land Department reported that total real-estate transaction value reached AED252 billion in Q1 2026, up 31% year-on-year, while transaction volume increased 6%.
Dubai’s rental market also remained highly active. According to the Dubai Land Department, rental contract value reached AED32.2 billion in Q1 2026, with more than 118,000 new rental contracts and more than 135,000 renewals.
UAE 2026 Outlook
Dubai and parts of the wider UAE continue to benefit from:
- population growth
- international migration
- employment
- business relocation
- tourism
- investor demand
- strong transaction activity
But supply deserves close attention.
Dubai has a substantial development pipeline.
That means buyers should research future apartment supply at the neighborhood level rather than assuming strong citywide demand protects every project.
Current average UAE gross yields are also lower than the approximately 5.45% recorded in late 2025 in the same international dataset.
That suggests buyers should watch whether property prices are rising faster than rents in particular areas.
For Dubai specifically, buyers can research actual transaction and rental data directly through the Dubai Land Department Real Estate Data.
That is considerably more useful than relying on somebody’s Instagram graphic announcing that every district produces 9%.
Turkey Rental Yield Outlook 2026
Turkey currently shows one of the higher gross rental yields among the markets in this comparison, at approximately 7.3%.
Certain property types and locations can show even higher headline yields.
But Turkey demonstrates perfectly why international real estate yield forecasts cannot be evaluated using yield alone.
Inflation remains high.
Türkiye’s official statistical authority reported annual consumer inflation of 31.75% in July 2026.
You can monitor current inflation directly through TÜİK.
Housing-related consumer costs were also increasing rapidly.
Meanwhile, property prices, rents and the Turkish lira can move at very different speeds.
The Central Bank of the Republic of Türkiye publishes the official Residential Property Price Index and New Tenant Rent Index.
Turkey 2026 Outlook
Turkey can offer attractive rental income relative to local property prices.
But international investors should examine returns in their own currency, not only Turkish lira.
Suppose a property generates a strong rental yield in lira.
If the currency depreciates materially against euros, pounds or dollars, the foreign investor’s effective return may be very different.
Turkey therefore needs to be analysed through three separate lenses:
property return
inflation
currency return
Transaction liquidity also deserves attention.
TÜİK reported 123,603 housing sales in July 2026, while January-July sales were 5.5% below the same period of 2025.
Foreign buyers accounted for around 1.7% of July transactions.
For 2026, Turkey remains potentially attractive for yield-focused buyers, but the higher headline return comes with clearly higher macroeconomic and currency risk.
Italy Rental Yield Outlook 2026
Italy currently shows an average gross residential rental yield of approximately 6.6% in the international comparison.
This may surprise buyers who assume mature Western European markets always produce very low rental yields.
But Italy is not one property market.
Rental performance varies substantially between:
- Milan
- Rome
- Turin
- Bologna
- Naples
- university cities
- smaller regional markets
- tourism destinations
Some lower-priced cities can produce substantially stronger rental yields than expensive prime locations.
Italy 2026 Outlook
Italy can be interesting for buyers who are willing to research cities individually rather than approaching the country as one homogeneous investment market.
Important factors include:
- local employment
- university demand
- tourism
- population trends
- property condition
- renovation costs
- tenant regulation
- resale demand
A 6% yield in one Italian city may carry a completely different risk profile from a 6% yield in another.
Thailand Rental Yield Outlook 2026
Thailand currently shows an average gross residential rental yield of approximately 6.5%.
Markets such as Bangkok and major tourism destinations can offer significant rental demand.
But foreign buyers need to consider legal ownership structure alongside rental returns.
Foreign ownership rules, especially where land is involved, require careful investigation.
This means Thailand illustrates another important principle in international real estate yield analysis:
A strong rental yield is irrelevant if the ownership structure does not suit you.
Before evaluating returns in any foreign market, understand what you can legally own through Legal Checks When Buying Property Abroad.
Georgia Rental Yield Outlook 2026
Georgia currently shows an average gross residential rental yield of approximately 7.4%, placing it among the higher-yield markets in this comparison.
Lower entry prices can make cities such as Tbilisi attractive to yield-focused international investors.
But higher yield should be considered alongside:
- smaller overall market size
- lower resale liquidity than major Western markets
- economic scale
- regional geopolitical risk
- currency exposureA 7% yield in a smaller emerging market should not be considered equivalent to a 7% yield in a deep and highly liquid property market.
The numbers may be identical.
The risks are not.
Why North Cyprus Is Not Given a National Yield Figure Here
Homes Gravity works with the North Cyprus property market, but we should not invent a national rental-yield number simply because having another row would make the table look more complete.
There is currently no sufficiently broad, standardized and transparent public residential dataset that allows North Cyprus to be compared with countries such as Spain or Greece using the same methodology with confidence.
Individual properties and developments can still be analysed using:
- real rental evidence
- comparable properties
- occupancy
- management costs
- purchase price
- local demand
But that is different from claiming that:
“North Cyprus rental yield is X%.”
When reliable comparable data is limited, the correct answer is to say so.
Good market research sometimes produces a number.
Sometimes it produces a limitation.
Both are useful.
Gross Rental Yield Is Not Net Rental Yield
Every percentage in the international comparison above is a gross rental yield.
For example:
Property price: €200,000
Annual rent: €12,000
Gross yield:
€12,000 ÷ €200,000 × 100 = 6%
But suppose annual expenses include:
- €1,500 management
- €1,000 community fees
- €600 maintenance
- €400 insurance
- €500 other costs
Net rental income becomes:
€8,000
If your total acquisition cost including taxes and fees was €220,000:
€8,000 ÷ €220,000 × 100 = 3.64%
The investment that was advertised as:
6% yield
is now producing approximately:
3.6% before personal taxation and financing.
That difference is why buyers should use Rental Yield on Property Abroad before comparing individual investments.
International Real Estate Yield Forecast: What Could Change During 2026?
Rental yields move because two major numbers change:
property prices
and
rents.
If property prices rise faster than rents:
yields generally compress.
If rents rise faster than property prices:
yields generally improve.
Several forces can influence this relationship during the remainder of 2026.
1. Interest Rates
Lower borrowing costs can increase property demand.
That may push property prices higher.
If rents do not rise at the same speed, yields can fall.
Higher borrowing costs can have the opposite effect by reducing buyer affordability.
Follow monetary policy through official central banks such as the European Central Bank for euro-area markets.
2. Housing Supply
New construction can affect both prices and rents.
A market receiving large amounts of new housing may see:
- slower rent growth
- greater vacancy
- increased resale competition
But new supply is not automatically negative.
If population and demand are growing faster than construction, the additional housing can be absorbed.
Supply must always be compared with demand.
3. Population and Migration
International migration has become an important housing-demand driver in several major markets.
Population growth can support:
- rents
- occupancy
- transaction activity
But buyers should study the exact city.
National population growth does not guarantee strong rental demand in every location.
Use official population sources such as Eurostat for EU countries and the World Bank for broader international comparisons.
4. Tourism
Tourism remains important in markets including:
- Spain
- Greece
- Portugal
- Thailand
- Turkey
- UAE
But tourism numbers should not be confused directly with rental yield.
Buyers should examine:
- seasonality
- length of stay
- short-term rental regulation
- accommodation supply
- occupancy
A country receiving record tourist arrivals can still contain oversupplied holiday-rental districts.
5. Short-Term Rental Regulation
Regulation remains one of the biggest risks for investors relying heavily on holiday rentals.
Cities and countries continue to introduce:
- licences
- registration
- rental limits
- tax requirements
- building restrictions
The investment should therefore work under realistic legal conditions, not under the assumption that today’s short-term rental rules can never change.
6. Currency
Currency remains particularly important in markets such as Turkey, Georgia and Thailand.
A foreign buyer should calculate:
local rental return
and
return converted into the buyer’s home currency.
Those results can be very different.
How Homes Gravity Interprets Rental Yield in 2026
We do not classify countries simply as:
high yield = good
and
low yield = bad.
Instead, consider four dimensions.
Yield
What income can the property realistically generate?
Stability
How predictable are the market, currency and regulatory environment?
Liquidity
How easy might the property be to sell later?
Risk
What must go right for the expected return to materialize?
A useful international property comparison looks at all four.
A 4% Yield Can Be Better Than an 8% Yield
Consider two hypothetical investments.
Market A
Gross rental yield: 8%
But:
- volatile currency
- weak resale demand
- high vacancy risk
- limited comparable data
Market B
Gross rental yield: 5%
But:
- stable currency
- strong local tenant demand
- liquid resale market
- limited housing supply
Which is better?
The yield alone cannot answer.
The buyer focused entirely on income might choose Market A.
The buyer prioritizing capital preservation might prefer Market B.
A third buyer might reject both.
That is what proper market comparison should allow.
Do Not Use Country Averages to Buy Individual Property
Suppose Spain’s average gross rental yield is approximately 5.4%.
That does not mean an apartment you are considering will produce 5.4%.
Your property might produce:
3%
or
8%
depending on:
- purchase price
- exact location
- property size
- tenant demand
- rent
- service charges
- management
- regulation
Country averages are useful for screening markets.
Property-level calculations are required for making purchases.
How to Use This International Real Estate Yield Forecast
Use the forecast in three stages.
Stage 1: Compare Countries
Identify markets where the balance of yield, risk and price fits your goal.
Use our International Property Market Comparison for the wider comparison.
Stage 2: Research the Market
Analyse the city and neighborhood.
Study:
- supply
- demand
- prices
- rents
- population
- construction
- resale
Use How to Research a Property Market.
Stage 3: Calculate the Property
Use the actual:
- purchase price
- rental income
- vacancy
- costs
- taxes
- management
- financing
Then calculate gross and net rental yield using the Homes Gravity Property Calculators.
2026 International Rental Yield Summary
The current international real estate yield forecast 2026 shows a broad divide between higher-yield emerging markets and lower-yield mature or rapidly appreciating markets.
Markets such as Turkey and Georgia currently offer higher headline yields, but buyers accept greater currency, economic or liquidity risk.
Spain remains around the middle of the range, with strong housing demand but rapid price appreciation creating potential yield compression.
Greece and Portugal currently show more moderate average yields, meaning purchase-price discipline is increasingly important.
The UAE remains a highly active international market, but yield varies enormously by city, district and property type while new supply needs close attention.
Italy and Thailand show that attractive headline yields can also exist outside the markets receiving the loudest international-property marketing.
No country wins automatically.
The Most Important Number Is the One You Can Defend
Rental-yield forecasts are useful because they allow markets to be compared.
They become dangerous when buyers treat them as promises.
Before buying, you should be able to explain:
- what rent the property can realistically achieve
- what occupancy is realistic
- what expenses you will pay
- why tenants want that location
- how much competing supply exists
- whether rental activity is legal
- who manages the property
- who might eventually buy it from you
If those assumptions are solid, the resulting yield becomes meaningful.
If they are not, adding a percentage sign does not improve them.
The best rental yield is not the highest number on the page. It is the return most likely to survive reality.
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