The 6 Best Places to Invest in Real Estate That Most Investors Overlook
Open any "top places for real estate investment" article, and you'll find the same generic, outdated locations: New York, London, Dubai, and Singapore. Sure, these markets delivered solid returns in the past, but today? They're saturated, overpriced, and facing serious headwinds. The most promising investment locations today are those positioned for growth due to a confluence of favorable factors that many investors overlook.
The most critical factor? Demographics. You can have the most beautiful property in the perfect location, but if the population is shrinking or aging dramatically, and foreigners aren't coming to stay either, your real estate investment faces a bleak future. Population collapse is already ticking in many developed nations. Over 55% of countries worldwide (110 out of 204) now have fertility rates below replacement level (2.1), and all considered to be the best real estate investment destinations are among these.
While some African regions like Nigeria (with a 5.1 fertility rate as of 2022) show explosive population growth, factors like political instability and security concerns create unacceptable investment risks. That is why the ideal investment location balances several critical factors:
- Sustainable demographics: A growing or at least stable population with a healthy age distribution
- Political and economic stability: Predictable governance and economic growth
- Safety: Low crime rates and minimal natural disaster risks
- Climate appeal: Pleasant living conditions that attract residents and tourists
- Foreign investment openness: Accessible ownership structures and reasonable taxation
- Yield potential: Attractive rental returns and capital appreciation possibilities
With these criteria in mind, let's explore six promising yet overlooked real estate investment destinations that deserve serious consideration in today's market.
1. Bali, Indonesia: Island Paradise Open for Foreign Capital
Indonesia, the world's fourth most populous country with 285 million people, offers a decent combination of healthy demographics (fertility rate of 2.1) and economic growth in today's aging world. While Jakarta and other major Indonesian cities struggle with overcrowding, pollution, and formidable barriers for foreigners, Bali stands as an open opportunity for foreign individual investors. The island's population has risen beyond 4.4 million, growing significantly faster than Indonesia's national average, driven by a substantial inflow of foreign expats and internal migration from other Indonesian islands seeking economic opportunities in tourism.
Key Investment Factors:
- Demographics: A growing population of 4.4+ million with a youthful median age (~30)
- Safety: Among the world's lowest murder rates (0.4 per 100,000); minor tourist-area petty theft is the primary concern
- Climate: Year-round 26-27°C temperatures moderated by ocean breezes
- Legal Framework: Foreigners can acquire long-term leaseholds (25-99 years). Learn more about property rights in Indonesia in this article
- Rental Returns: 7-15% gross yields, with prime areas reaching 15-18%
- Foreign Accessibility: Indonesia's most expatriate-friendly region with widespread English usage
- Market Momentum: Foreign arrivals up 22% year-on-year; expanding digital nomad presence
Properties in high-demand tourist hubs like Canggu and Bukit Peninsula have delivered rental returns of 15-18% annually, outperforming major global markets. This performance is sustained by tourism metrics showing remarkable resilience—April 2024 foreign arrivals increased 22% year-over-year. The market's forward trajectory benefits from Indonesia's infrastructural investments, including the new Gilimanuk-Mengwi toll road, which reduces cross-island travel time by 30%, and expansions at Ngurah Rai International Airport, boosting capacity to 35 million passengers annually. Additionally, Indonesia’s strong economic growth (~5% GDP annually) and a growing middle class mean more domestic tourism and second-home buying in Bali.
Learn more about Bali real estate market here.
2. Taif, Saudi Arabia: The Royal Summer Residence with Cooler Weather
Saudi Arabia is a nation of 34.5 million with one of the Gulf region's healthiest demographic profiles, with its young population (median age 29.6) and fertility rate of 2.39 births per woman. Currently, it is undergoing a massive economic transformation beyond petroleum dependency. Taif presents a unique opportunity in terms of climate advantage. Located at 1,879 meters elevation in the Sarawat Mountains, this city of 1.2 million offers summer temperatures averaging 32-33°C, dramatically cooler than Riyadh and Jeddah's punishing 40°C+ summers. Taif is Saudi Arabia's "Summer Capital," where even the royal family maintains seasonal residences.
Key Investment Factors:
- Demographics: Young population with a median age of 29.6 and above-replacement fertility of 2.39
- Safety: Extremely low crime rates with virtually non-existent violent crime, the country ranked the 2nd safest G20 nation behind only Japan
- Climate: Temperate mountain weather (1,879m elevation) with summer highs around 32-33°C, much cooler than major Saudi cities
- Legal Framework: Foreign residents can purchase one property with ministry approval; recent liberalization allows foreign investment via companies
- Rental Returns: 5-7% gross yields with tax-free income (no property taxes, stable USD-pegged currency)
- Foreign Accessibility: Rapidly liberalizing visa policies, including Premium Residency (IQAMA) program
- Market Momentum: "New Taif" development plan, including an international airport with 2.5 million passenger capacity
The government's ambitious "New Taif" project represents a cornerstone of investment potential, featuring a massive international airport (scheduled completion by 2030) with a 12 km² development zone for support facilities and commercial spaces. This infrastructure investment could transform Taif into a gateway for Hajj/Umrah pilgrims given its proximity to Mecca. The Saudi real estate market remains sustainable with rental yields averaging 5-7% nationwide. Particularly noteworthy for investors is Saudi Arabia's tax environment: with no property taxes on individuals and currency stability through the USD-pegged riyal, rental income avoids the typical erosion seen in other markets.
3. Monterrey, Mexico: Industrial Powerhouse with Cross-Border Advantages
Mexico, a nation of 132 million, despite declining fertility rates (1.8), has annual GDP growth of 3.2% as of 2023 data and a young population with a median age of 29.6. Moreover, the country is becoming increasingly popular among American expats fleeing from the rising living costs of the US, which drives real estate market growth. While Mexico City often dominates headlines, Monterrey stands apart as Mexico's industrial and technological powerhouse with better safety. The city has vastly improved its security situation since 2010-2011, with consistently decreasing crime rates and secure business and expatriate districts. The metropolitan area's 5+ million residents continue increasing through industrial expansion, with over 100 new factories established in 2023 alone, creating substantial housing demand.
Key Investment Factors:
- Demographics: Young national population (median age 29.6) with metropolitan area 5+ million residents growing faster than the national average
- Safety: Consistently decreasing crime rates with secure business and expatriate districts
- Climate: Semi-arid subtropical weather with hot summers (35-37°C) and mild winters (20°C daytime)
- Legal Framework: Full foreign ownership rights outside restricted coastal zones; same property rights as citizens
- Rental Returns: Among Mexico's highest at 6.4% gross average, with modern centrally-located condos yielding 6-7%
- Foreign Accessibility: Minimal barriers for residency; substantial US expatriate community; widespread English in professional settings
- Market Momentum: Surpassed Mexico City in industrial space demand; property values rising 10% year-over-year
Monterrey leads Mexico's industrial expansion with over 100 new factories established in 2023 alone, creating substantial housing demand from incoming workers and executives. The planned Tesla Gigafactory (a potential $5 billion investment) demonstrates the scale of corporate interest driving land appreciation in strategic areas like Santa Catarina. The city's proximity to the US border (approximately 200km) facilitates expatriate flow and creates opportunities for retirement communities serving American retirees seeking proximity to Texas with significantly lower living costs, with average expatriate living expenses around $1,500 monthly, including $400-500 for one-bedroom rentals.
4. Madeira, Portugal: Atlantic Island with Tax Advantages
Portugal, a nation of 10.4 million facing serious demographic challenges with its low fertility rate (1.43), has nevertheless become a magnet for international residents seeking retirement. However, Portugal has an almost inexhaustible demographic resource in the form of Brazil, with its 211 million culturally similar population. Brazilians now account for approximately 15% of all Portuguese home sales, reflecting a growing community of ~500,000 Brazilians in Portugal.
Here, on the corner of Europe, Madeira, an autonomous island region with special tax status, stands as one of the best investment picks. This Atlantic archipelago with a stable population of 250,000 has transformed into an international destination, growing visitor numbers by 50% since 1995 to approximately 4 million annually. Madeira offers exceptional safety as part of Portugal (ranked 7th globally on the Global Peace Index), with virtually non-existent violent crime and the economic stability provided by EU and Eurozone membership.
Key Investment Factors:
- Demographics: Stable population sustained through international appeal to retirees, expatriates, and digital nomads
- Safety: Negligible crime even by Portuguese standards; close-knit island community
- Climate: "Island of Eternal Spring" with year-round 18-20°C averages; winter highs ~20°C, summer ~26-27°C
- Legal Framework: Equal property rights for foreigners; straightforward purchase process without restrictions
- Rental Returns: 5.3% average gross yield, with short-term vacation rentals achieving 7-8%
- Foreign Accessibility: Highly welcoming with established expatriate communities; Non-Habitual Resident program offering 10-year tax advantages
- Market Momentum: Growing digital nomad presence; Funchal property prices (~€3,500/m²) below Lisbon (€4,700/m²)
Madeira offers unique advantages through its special status as an autonomous region with a free trade zone providing tax benefits to international businesses. The island launched the world's first Digital Nomad Village in Ponta do Sol in 2021, attracting thousands of remote workers in its first year alone. Property acquisition costs remain attractive compared to mainland Portugal, with Funchal prices averaging €3,500/m² versus Lisbon's €4,700/m². The Non-Habitual Resident tax regime offers potential tax rates of just 10% or even 0% on foreign pension income for the first decade of residency.
5. Bangalore, India: Tech Hub with Sustainable Growth Trajectory
India, the world's most populous country with 1.4 billion people, is experiencing a gradual demographic transition, with fertility rates now decreasing to replacement levels (2.0 children per woman). The country maintains exceptional economic momentum with impressive GDP growth of 8.2% as of 2023. Bangalore, a thriving metropolis of 12+ million residents, has earned its reputation as India's "Silicon Valley" and offers distinctly milder climate conditions compared to most of the country. The city benefits from its 900-meter elevation, where temperatures typically range from 20-34°C in summer and 14-27°C in winter, significantly more moderate than Delhi's scorching heat or Mumbai's oppressive humidity.
Key Investment Factors:
- Demographics: Population of 12+ million growing significantly faster than the national average (2.0) due to tech industry migration
- Safety: Lower crime rates than other major Indian cities; secure upscale neighborhoods
- Climate: Moderate tropical savanna climate at 900m elevation; temperatures typically 20-34°C in summer, 14-27°C in winter
- Legal Framework: Foreign residents can purchase non-agricultural property after residing for>182 days annually; OCIs have the same rights as citizens
- Rental Returns: Highest in India at 4.4% gross average, significantly increased from 3.6% pre-pandemic
- Foreign Accessibility: Large expatriate population working in technology; English is widely spoken professionally
- Market Momentum: Led India in housing sales (21% of top cities); significant infrastructure expansion, including a 175km metro system by 2026
Bangalore hosts over 10,000 IT companies and startups, with the ecosystem expanding into fintech, edtech, AI, and biotech. Property rental yields have surged, with rates increasing 24% since 2019 as offices call employees back and migration continues. The metro rail expansion to 175km by 2026 and a new suburban rail system will transform accessibility, creating development corridors with appreciation potential. Specific districts like Whitefield, Electronic City, and North Bangalore (Hebbal) offer higher yields (5-6%) due to proximity to tech parks while maintaining moderate property prices.
6. Budva, Montenegro: Adriatic Harbor with EU Potential
Montenegro is a small Balkan nation of just 620,000 people with a fertility rate of 1.8, which is heavily dependent on tourism. While the country's domestic population is aging and slightly declining, recent geopolitical shifts have created unexpected demographic advantages. Since the conflict in Eastern Europe began, Montenegro has welcomed tens of thousands of Ukrainian and Russian immigrants, many with significant investment capital. The country boasts ideal Adriatic weather, rich historical heritage, remarkably affordable property prices, minimal regulations, and one of Europe's lowest tax burdens, with rates on a progressive scale of just 9% to 15%. Budva, a historical coastal town with only 20,000 permanent residents, dramatically transforms during summer months when tens of thousands of tourists (primarily from Serbia, Russia, and EU countries) flood in, creating intense seasonal demand peaks and lucrative rental opportunities.
Key Investment Factors:
- Demographics: Seasonal population multiplies through tourism; growing international buyer interest
- Safety: Very low crime rates with minimal violent incidents; streets safe at all hours
- Climate: Classic Mediterranean weather with hot, dry summers (~30°C) and mild winters (~10°C); 240+ sunny days annually
- Legal Framework: No restrictions on foreign property ownership; foreigners can own land and buildings outright
- Rental Returns: Strong seasonal rental potential with year-round options in central locations
- Foreign Accessibility: Extremely open to foreign buyers; property ownership grants renewable residence permits
- Market Momentum: Montenegro's EU candidacy creates future appreciation potential
Unlike the dramatic but difficult terrain of neighboring Kotor, Budva features relatively flat, buildable land around its medieval walled old town (Stari Grad). Property ownership automatically qualifies foreigners for renewable temporary residence permits, creating seamless paths to part-year or full-time residence. Historically, Russians dominated the foreign buyer market (once estimated to own 70% of Budva's real estate by value), but recent geopolitical shifts have diversified investment sources to include EU countries, China, and Middle Eastern buyers. Montenegro's EU candidate status offers significant upside potential—if accession proceeds as expected, property values could see substantial appreciation similar to patterns observed in previous EU expansion countries.
Learn more about Montenegro real estate here.
About Binaryx
Binaryx is a real estate tokenization platform that operates under Wyoming’s 2021 law (W.S. SF0038), turning real estate properties into digital tokens. For each property, Binaryx creates a dedicated LLC in Wyoming that issues tokens on the blockchain. When you buy these tokens, you become a co-owner of the LLC that owns the property, with all ownership rights protected by state law.
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