Highest Rental-Yield Cities for Investors (2026)
Published on: May 28, 2026
Quick answer: On a gross-yield basis in 2026, the highest-yielding cities for international buyers are led by Hurghada (~8–12%) and the short-term-rental corridors of Bali (Canggu/Uluwatu, ~8–15%), followed by Batumi and Medellín, then stronger-but-steadier markets like Dubai, Istanbul, Bangkok and Budapest (~5–7%). But gross yield ignores taxes, management, vacancy and maintenance, so your net is typically 1.5–3 percentage points lower, and the highest-yield frontier and STR markets usually carry more currency, liquidity and regulation risk. The goal is the best risk-adjusted net yield, not the highest headline number.
For income-focused property investors, one number cuts through the noise: gross rental yield, annual rent divided by purchase price. A €1M Paris apartment renting at 3% and a €120,000 Batumi apartment renting at 9% are very different businesses, even though both are "real estate."
This is a ranked, updated-for-2026 look at the cities where gross yields run highest for international buyers. Use it as a shortlist, not gospel: yields are gross, they vary by unit and management, and the highest-yield markets usually carry higher operational or currency risk. When you've picked a target, you can screen live, verified listings by city and yield potential on JanusHermes.
How to read this list. Gross yield ignores taxes, management fees, vacancy and maintenance, your net yield is typically 1.5–3 percentage points lower. Short-term-rental yields (marked STR) can be far higher than the long-term figures but come with more work, regulation risk and seasonality. Always model net, not gross.
The 2026 ranking (gross yields)
1. Hurghada, Egypt, ~8–12%
Egypt's Red Sea resort city offers some of the lowest entry prices anywhere paired with strong tourist demand. Furnished sea-view studios from the low tens of thousands plus year-round sun make the rent-to-price ratio exceptional. The trade-offs are developer/title due diligence and currency exposure.
2. Canggu / Uluwatu, Bali, ~8–15% (STR)
On short-term rentals, the Canggu corridor and Uluwatu are among the highest-yielding markets in the world, driven by digital-nomad and tourist demand and 70–85% occupancy on well-run villas. Remember the ownership structure (leasehold or PT PMA) and that yields here are STR-driven and management-intensive.
3. Batumi, Georgia, ~8–10%
No foreign-ownership restrictions, cheap and fast transactions, and a growing Black Sea tourism market make Batumi a yield favorite. Modern sea-view apartments under $150,000 with strong seasonal demand. Watch seasonality and developer track record.
4. Medellín, Colombia, ~7–10% (STR)
Latin America's standout. A large expat and tourist short-term-rental market in neighborhoods like El Poblado and Laureles supports high STR yields, and entry prices remain low relative to Western markets. Manage currency and regulatory shifts on short-term rentals.
5. İskele / Long Beach, Northern Cyprus, ~6–9%
Low prices, developer payment plans and steady holiday-rental demand. The critical variable is title-deed type, get specialist legal advice before committing.
6. Dubai, UAE, ~6–8%
Dubai pairs strong, tax-friendly yields with liquidity, no property tax and a Golden Visa at AED 2M+. Yields are lower than frontier markets but the market is deep, regulated and easy for foreigners to transact. Areas like JVC, Dubai South and the Palm/Islands span the yield range.
7. Istanbul & Antalya, Turkey, ~5–7%
A large, liquid market with simple foreign ownership (TAPU) and strong tourism on the coast. Antalya leans on holiday-rental demand; Istanbul on long-term tenancy. The main risk is currency, model returns in your home currency.
8. Manila / Cebu, Philippines, ~6–8%
A growing economy, large rental demand and condo ownership open to foreigners (up to the building's 40% foreign quota). Strong long-term fundamentals; watch developer quality and the land-ownership restriction.
9. Bangkok, Thailand, ~5–7%
A deep condo market with clean freehold title for foreign-owned units, mature tourism and long-stay visa options. Yields are solid rather than spectacular, but the market is liquid and well-understood.
10. Budapest, Hungary, ~5–6%
The pick for EU exposure with reasonable yield. Central-European pricing, EU membership and tourist plus student rental demand. Lower yield than frontier markets, but lower currency and legal risk.
Yield is only half the story
A high gross yield is worthless if the market can't deliver it net. Before you commit to any city on this list, pressure-test five things:
- Net vs. gross. Subtract management (often 15–25% on STR), taxes, service charges, insurance and realistic vacancy.
- STR regulation. Many cities are tightening short-term-rental rules, a 12% STR yield can become a 5% long-term yield overnight if licensing changes.
- Currency. A 9% yield in a depreciating currency can be negative in your home currency. Hedge or price conservatively.
- Liquidity & exit. Frontier markets yield more partly because exit is slower. Factor resale time into your hold-period math.
- Total transaction cost. Budget 7–15% above price for taxes, legal and registration, it dilutes year-one yield.
Yield vs. risk, at a glance
| Tier | Cities | Gross yield | Profile |
|---|---|---|---|
| Highest yield, higher risk | Hurghada, Batumi, Canggu, Medellín | 8–15% | Frontier/STR-driven, FX & regulation risk |
| Strong yield, moderate risk | N. Cyprus, Dubai, Antalya, Manila | 6–9% | Growing markets, manageable rules |
| Solid yield, lower risk | Bangkok, Istanbul, Budapest | 5–7% | Deep/liquid markets, lower volatility |
All figures are 2026 gross-yield estimates and vary by unit, area and management.
Frequently asked questions
What is a good rental yield in 2026?
For long-term rentals, 5–7% gross is solid in a stable market; 8%+ usually signals a frontier or short-term-rental play with higher risk. Always compare net, not gross.
Which city has the highest rental yield right now?
On a gross basis, Hurghada (Egypt) and short-term Bali corridors (Canggu/Uluwatu) lead, followed closely by Batumi and Medellín.
Are high-yield cities riskier?
Generally yes, high yields often compensate for currency, liquidity, title or regulatory risk. The goal is the best risk-adjusted net yield, not the highest headline number.
Should I buy for long-term or short-term rental?
Short-term can yield more but demands active management and carries regulation risk; long-term is lower-yield but steadier. Match the strategy to how hands-on you want to be.
Pick your target city and screen verified, investment-grade listings by price and yield potential on JanusHermes.
Informational only, not investment advice. Yields are estimates; do your own due diligence and consult a qualified local professional.
A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.
