Where To Lock In Property Profits In 2025

It’s that time of year when publishers put out prediction lists. International real estate is no different.

Over the past few weeks, I’ve looked at several lists and can say they mostly focus on the same countries… some of which I agree with and some I’m more skeptical.

Countries where you can always find good opportunities are Mexico and Panama, and the latter has not been included in any of the prediction lists I’ve found.

Here’s my list of markets to pay attention to in 2025…

Mexico

In Mexico, our focus is Mazatlán, which hasn’t been as overdeveloped as other parts of Mexico while also having easy access from the United States. Prices in this market are still reasonable, as are the potential rental yields.

Another Mexico market that holds up well in my view is Playa del Carmen. The complication here is that you must find the right property and most new construction is away from the action, meaning you should look at resales more than pre-construction projects. That also means higher prices. Still, the net yield possibilities can top 8%, which is the upper end of my long-term target range of 5% to 8%.

Panama

I’ve got the inside track on a building in Panama that a developer is renovating. It’s currently a hotel. The developer will renovate the building and sell half the units that owners can rent in the short-term. The other half of the units he’s keeping and planning to rent out long-term. Short-term rental projections again are in the 8% range.

The hotel currently has 100% occupancy. Anyone who understands hotel operations knows that is just stupid. Hotels can’t run efficiently at 100% occupancy, and it means you’re charging too little for the rooms. This is where the developer sees the potential to improve things.

Other countries on the predictions lists I’ve seen include Turkey—where Kathleen and I took a road trip in August.

We drove through the “riviera” region from Izmir to Bodrum to Antalya looking at properties, prices, and the towns along the way. Our take on that region specifically was prices were high (compared to similar properties and settings in the western Mediterranean) and quality was okay.

Yields are strong, but the economic risks in Turkey outweighed our interest in pursuing our research further.

In other words, Turkey has viable real estate opportunities, but from my perspective, other options are easier to figure out and less risky at the moment.

Montenegro

Montenegro has been on my list for years and specifically highlighted for the last few years. Recently, the rest of the world has caught on. Prices have gone up a fair amount in the last three or four years, but they have room to continue to increase even in the hot zones if you buy right. Net rental yields, even with higher prices, remain strong.

Between becoming a hot spot for regional wealthy people to hang out (Eastern Europe, Turkey, and even Saudi Arabia) and being next in line to join the EU, Montenegro will be a strong market for some time.

Portugal

Many people are still touting Portugal as a great real estate investment destination. For living, it’s fantastic. For investing, it’s become harder to find the great deals. They can still be found in the hot zones for those willing to put in the time, but the better priced properties are in less traveled locations and therefore less interesting from a net yield perspective.

The one thing Portugal has going for it is that the international buyers have expanded beyond being mostly Brits. The downside is development has focused on higher end properties for the international market. Little to no development has been going on in the last 10 years targeting the Portuguese market, leaving a gap in inventory that must be figured out.

All that said, if Portugal is on your radar, you need to be ‘‘in the market’’ to be able to find a great opportunity. Anything worth investing in will be gone quickly if you’re only casually paying attention.

Spain

Spain, on the other hand, offers so many regions and opportunities that it’s hard to narrow them down… but you need to narrow them down, not unlike Portugal, between lifestyle and investment.

Many places in Spain are great for lifestyle, but if you’re looking for excellent yields, focus on areas that aren’t overbuilt and attract a non-travel package type of tourist. That’s easier said than done for much of Spain.

My colleagues on the ground suggest the areas around Alicante and Cartagena. I’m predisposed to the town of Estepona only because I bought pre-construction there almost 25 years ago and did well. I bought it when it was on the edge of the path of progress.

Currently, I think opportunities can be found based on contacts on the ground, but I need to go in person to look around.

Greece

Greece is on several real estate lists for 2025 including mine. Property prices in Greece remain extremely affordable compared to other Mediterranean options, but again, you need to look outside the traditional hot spots.

Crete will be my focus in 2025, and I’m speaking with a developer who has several options on the island.

The smaller islands of Greece scare me due to prices and potable water concerns in general for small islands.

On the mainland, everyone seems to be focusing on Thessaloniki. Greece’s second largest city may hold some opportunities as well.

Wherever you choose to focus in 2025, don’t go too far afield from your comfort zone. Great investments can be found in many markets. You don’t need to go too exotic unless it’s someplace you’re interested in spending more time in.

Stay diversified,

Lief Simon
Editor, Offshore Living Letter