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