Best Countries to Invest in Real Estate in 2025

Best Countries to Invest 2025-Philippines

In 2025, the global real estate market continues to evolve. This offers new opportunities for savvy investors.

Southeast Asia, in particular, has emerged as a hotbed for real estate investment, with several countries showing strong potential for capital appreciation and rental yields.

Among these, Cambodia, Malaysia, the Philippines, Thailand, and Singapore stand out as top destinations for foreign investors looking to diversify their portfolios.

Each country offers unique advantages, from rapid urbanization and economic growth to favorable legal frameworks for foreign ownership.

Let’s discover what makes these five countries the best places to invest in real estate for 2025.

Cambodia

Cambodia has long been considered a frontier market, but it’s rapidly shedding that label as its economy continues to grow at an impressive pace.

Phnom Penh, the capital, has become a focal point for real estate investment, with new developments springing up across the city. The country’s young population, coupled with increasing urbanization, is driving demand for both residential and commercial properties.

In fact, Cambodia’s urbanization rate, though still relatively low, is expected to increase significantly in the coming years, further boosting the real estate market.

One key advantage of investing in Cambodia is the relatively low cost of entry compared to other Southeast Asian countries. Property prices in Phnom Penh, for example, are still affordable when compared to cities like Bangkok or Ho Chi Minh City.

It’s possible to buy a condo for about $2,000 per sqm in Phnom Penh’s city center. Land and buildings have entry barriers, but are possible for $1,000 per square meter of floor space still.

This makes Cambodia an attractive option for investors looking for high growth potential without the hefty price tag.

Additionally, Cambodia’s legal framework is relatively open to foreign investors. Foreigners can own up to 70% of the units in a condo building, making it easier for international buyers to enter the market.

However, it’s important to note that Cambodia’s real estate market is still developing, and there are risks associated with investing in a frontier market.

Infrastructure, while improving, is still lacking in some areas, and the regulatory environment can be unpredictable.

That said, for investors with a higher risk tolerance, Cambodia offers the potential for significant returns as the country continues to modernize and attract foreign investment.

Malaysia

Malaysia has long been a favorite among foreign investors, thanks to its relatively low property prices, favorable exchange rates, and well-developed infrastructure.

Kuala Lumpur, the capital, offers some of the most affordable real estate in the region, with prices significantly lower than in neighboring Singapore or even Bangkok. You can buy a condo in central KL for about $3,500 per sqm.

This affordability, combined with the country’s modern amenities and high quality of life, makes Malaysia an attractive option for both investors and expatriates.

Best Countries to Invest 2025-Malaysia

Kuala Lumpur offers some of the most affordable real estate in the region, with prices significantly lower than its neighbors – only about $3,500 per square meter to be exact.

One of the key factors driving investment in Malaysia is the weak Malaysian ringgit, which has been underperforming for several years.

This presents a unique opportunity for foreign investors, as they can take advantage of favorable exchange rates to purchase property at a discount.

The ringgit already strengthened last year, and as it continues, investors stand to benefit from both capital appreciation and currency gains.

In fact, many analysts believe that the ringgit has little room to fall further and is poised for a rebound in 2025 and beyond.

However, it’s worth noting that Malaysia’s real estate market has been facing some challenges in recent years, particularly in terms of oversupply.

Vacancy rates in Kuala Lumpur, for example, have been rising, and there are concerns about the long-term sustainability of the market.

That said, for investors who are willing to take a long-term view, Malaysia still offers significant upside potential, particularly in the luxury and expatriate rental markets.

The Philippines

The Philippines has emerged as one of the fastest-growing economies in Southeast Asia, and its real estate market has been booming as a result.

Manila, the capital, has seen a surge in property prices in recent years, driven by strong demand from both local and foreign buyers.

The country’s young, growing population, coupled with increasing urbanization, is creating significant demand for residential, commercial, and industrial properties.

One of the key drivers of the Philippine real estate market in 2025 is the country’s booming business process outsourcing (BPO) sector.

The Philippines is one of the largest BPO hubs in the world, and this industry has created a steady demand for office space, particularly in cities like Manila, Cebu, and Davao.

Additionally, the rise of the middle class in the Philippines is driving demand for residential properties, particularly in urban areas.

Foreign investors are also drawn to the Philippines because of its relatively open real estate market. While foreigners are not allowed to own land, they can own up to 40% of a condo project which makes it simple for international buyers to invest in the country.

The Philippines’ government has been actively promoting foreign investment, offering various incentives to attract international capital.

However, similar to Cambodia, the Philippines is still a frontier market. There are risks to investing in developing countries.

Infrastructure, while improving, is still lacking in some areas. The regulatory environment here can be challenging for foreign investors.

That said, for those willing to navigate these challenges, the Philippines offers significant growth potential and high returns in 2025.

Thailand

Thailand has long been a favorite destination for foreign investors, thanks to its well-developed infrastructure, strong tourism industry, and favorable legal framework for foreign ownership.

The city’s population is still growing at a decent pace, despite imminent population decline in Thailand itself. Coupled with strong demand from both local and foreign buyers, this will continue to drive the real estate market.

One key advantage of investing in Thailand is the country’s strong rental market. Bangkok, in particular, offers attractive rental yields, particularly in the luxury and expat markets.

The city’s growing expatriate population, coupled with increasing demand from tourists and business travelers, is driving demand for rental property in 2025.

Additionally, Thailand’s relatively open legal framework makes it easy for foreign investors to purchase property. Foreigners can own up to 49% of the units in a condo development, and there are no restrictions on the repatriation of profits.

 

Best Countries to Invest 2025-Thailand

Thailand’s strong rental market, especially in its capital, Bangkok, offers attractive rental yields, particularly in the luxury and expatriate markets.

However, it’s worth noting that Thailand’s real estate market is becoming increasingly competitive, particularly in Bangkok. Property prices in Thailand have been rising steadily, and there are concerns about oversupply in some areas.

That said, for investors who take a long-term view, Thailand still offers attractive returns, particularly in the rental market.

Singapore

Singapore has long been considered one of the safest and most stable real estate markets in the world.

The city-state’s well-developed infrastructure, strong legal framework, and high quality of life make it a favorite among foreign investors.

While property prices in Singapore are significantly higher than in other Southeast Asian countries ($20,000 per square meter in the city center!) its city’s stability and demand for real estate make it an attractive option for those seeking a safe haven in 2025 and beyond.

One key advantages of investing in Singapore is the city’s strong rental market. Singapore’s growing expat population, coupled with its status as a global financial hub, drives demand for rental properties, particularly in the luxury market.

Additionally, Singapore’s strict property laws and strong regulatory framework make it one of the most transparent and investor-friendly markets in the world.

However, it’s worth noting that Singapore’s real estate market is highly competitive, and property prices are among the highest in the world. This makes it difficult for investors to find affordable entry points, particularly in the luxury market.

That said, for those who can afford it, Singapore offers a safe and stable environment for real estate investment, with strong potential for capital appreciation and rental yields.

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