The best cities to buy rental property

How to rank a city for rental yield

Four numbers do most of the work: gross yield (annual rent ÷ purchase price), net yield (after operator, management, tax and vacancy), stabilized occupancy, and 5-year capital growth. A high gross yield with 45% occupancy is worse than a modest yield at 78%.

• Gross yield 8%+ — worth underwriting further.
• Net yield 5–7% — realistic in the best emerging markets after a serviced-apartment operator takes their cut.
• Occupancy 70%+ — the threshold where projections survive a slow quarter.

Emerging LATAM — the yield leaders

Tourism-led coastal cities in Mexico and Colombia consistently produce the strongest net yields on ProjectIQ's marketplace.

• Tulum, Mexico. Nightly-rate driven. Gross yields 8–11%, net 5–7% after a rental program. Capital growth has averaged double digits over the last cycle; supply is now catching up, so underwrite conservatively.
• Playa del Carmen, Mexico. More mature than Tulum, steadier occupancy (75–85% in prime buildings), slightly lower gross yield (7–9%) but easier to manage remotely.
• Medellín, Colombia. Long-stay and mid-term rental demand from remote workers. Gross yields 7–10% in El Poblado and Laureles, USD-priced units insulate against peso volatility.
• Cartagena, Colombia. Tourism-heavy, seasonal. Yields 6–9%, but Old City units hold value better than new-build peripheral supply.

Europe — lower yield, harder currency

Portugal, Spain and Greece deliver 3–5% net yields on average, with capital preservation and residency optionality doing the rest of the work. Lisbon and Porto short-term rental licenses are restricted; Athens, Málaga and Valencia currently have more room.

Asia & Middle East — branded product, regulated frameworks

Bali, Phuket and Dubai lead the branded-residence category. Yields cluster around 6–8% net when the operator is credible, and the rental program is contractual rather than best-efforts. Watch ownership structure — freehold vs. leasehold changes the exit math materially.

Emerging vs. mature: what changes for passive investors

Mature markets (London, Paris, New York) offer 2–4% net yields, deep liquidity, and predictable rules. Emerging markets on ProjectIQ offer 5–7%+ net yields, thinner liquidity, and more sponsor risk. A common allocation for cross-border investors: two-thirds emerging-market rental income, one-third mature-market capital preservation.

How to compare listings on ProjectIQ

Use the currency switcher to normalize prices, filter by rental program on the listing page, and check the operator's contracted occupancy floor (not their marketing average). The /compare tool puts up to four listings from different cities side by side — yield assumptions, payment plan, delivery date and operator fees on the same row.