Georgia Leads the Way with a 12% Rental Yield for the Second Consecutive Year
For the second year running, Georgia has retained its position as the global leader in rental yield, boasting an impressive annual rate of 12%, according to data from the recently updated Global Property Guide report. This remarkable surge in rental yield began in 2022, attributed to a substantial influx of migrants and a corresponding surge in housing demand.
The question on many minds is, how long can these current high rates of return be sustained? While predicting the future with certainty is challenging, there is a discernible trend of declining profitability. Galt and Taggart agency's observations for August revealed that 3,552 residential properties were sold in Tbilisi, marking a 9.3% decrease compared to the previous year. The decline in sales volume primarily affected the secondary housing market, which saw a drop of 14.6% year-on-year. This could be an early sign of a reduction in overall market appeal due to decreased demand from immigrants.
Here's a glimpse of rental yield rates in select popular countries:
- Georgia - 12.14%
- South Africa - 9.95%
- Ireland - 8.38%
- Puerto Rico - 8.05%
- Latvia - 7.81%
- Colombia - 7.70%
- Morocco - 7.62%
- Indonesia - 7.55%
- Lithuania - 6.67%
- Romania - 6.63%
- Spain - 6.09%
- Turkey - 5.4%
