Report: Japan, Thailand and China have the hottest property markets to invest in

Most real estate investors are watching the Japanese, Thai, and Chinese markets for lucrative deals right now, according to a new study released by the online trading platform Taurex.

The firm ranked the world’s top 10 lucrative housing markets where interest from property buyers is surging.

Japan is the world's biggest real estate hotspot right now, with buyer interest jumping 245 per cent in the past three years. Property buyers are also flocking to Thailand, where interest has nearly tripled as rising home prices point to steady gains.

Middle Eastern markets are attracting new investors fast, with the United Arab Emirates (UAE), Oman, and Saudi Arabia all making it to the top 10.

The research examined nearly 40 countries to find where interest in buying real estate has grown the most since 2022.

For each place, it tracked how often people searched online for things like buying property, rental homes, and houses for sale.

The study also looked at rental yield, which shows how much income a property brings in compared to what it costs, and the price-to-income ratio, which shows how expensive homes are compared to what people actually earn.

Countries were finally ranked by how much buyer interest grew in the past three years.

Search interest change in the past three years was +245 per cent in Japan, with zero rental yield change (held steady at 2.3 per cent). The price-to-income ratio change was 3.6 per cent.

Japan is the world’s biggest hotspot for real estate investment right now.

Three years ago, the market attracted around 2.3 million potential buyers, but nowadays that figure reaches almost eight million.

Rental income has stayed put at 2.3 per cent the whole time, and housing costs relative to income barely moved either, up just 3.6 per cent.

Those steady returns and a stable price tag help explain why so many buyers have Japan on their radar right now. Thailand comes in second, with interest in property investment nearly tripling, up 197 per cent, and reaching over 16 million potential buyers.

The key reason behind the rising interest, according to the report, is that Thai houses are steadily growing in price, getting 10 per cent more expensive over the past five years.

The yield is also attractive, above three per cent, so property investors see a way to collect rental income now and still sell for a profit down the road.

China ranks third among the hottest real estate markets. The country records a 185 per cent rise in property investment interest, growing from 275,000 potential homebuyers to nearly 784,000.

Part of the draw is that rental income actually went up, climbing 13.3 per cent over the period, so landlords are collecting more from the same property.

Homes also got a bit cheaper to buy relative to local pay, giving buyers two good reasons to jump in at the same time.

The UAE takes fourth place as the most attractive Middle Eastern market. Interest in property there grew 176 per cent, most likely from foreign buyers.

That’s because homes in the UAE have become too pricey for many locals, pushing the market toward international investors, who have more room in their budgets.

And while rent yields are down (-52 per cent), that number could climb back up once the Iran conflict settles and international tourism rebounds in the region.

The country is among nations that have suffered attacks by Iran for having United States military bases where the US has been launching attacks on Iran.

Oman rounds out the top five real estate hotspots in the world, with property investment searches up 159 per cent over the past three years.

Rental yields there have held close to seven per cent for most of the period, giving buyers steady income on their purchase.

On top of that, Oman stands out as one of the few countries where housing has become more affordable, with the price-to-income ratio down 17.4 per cent.

Others in the top 10 are Kazakhstan, Saudi Arabia, Italy, Taiwan and Switzerland.

"Most of the top 10 countries here aren't in Europe or America at all. Switzerland is the only Western country that made the list. That's not surprising, since home prices in places like the UK have kept climbing fast.

When prices at home get that steep, buyers start looking elsewhere for a better deal," said a market analyst from Taurex while commenting on the findings.

"Southeast Asia is picking up a lot of that demand right now, partly because tourism there keeps growing, which makes it easier to rent out a property once you own it. The Middle East is a good example on the other end too, since prices there have actually come down amid regional conflict, which opens the door for buyers looking for a lower entry point."