Best Countries to Invest in Real Estate in 2025

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.