The International Market Institute (IMI) evaluated 146 global cities on pure real‑estate investment merits, stripping out the value of residency or citizenship permits. Seven cities that previously featured in “golden‑visa” programs were ranked from worst to best based on seven categories: property fundamentals (30 %), demand, governance, macro environment, and resilience (each 10 %), plus a penalty for restrictive foreign‑ownership rules.
Overall ranking and methodology
- Scoring: Each city receives a total score; higher scores indicate stronger investment fundamentals.
- Foreign‑ownership penalty: 3–8 points deducted where non‑resident ownership is tightly limited.
- Key metrics reported: price per square metre, projected gross yield, round‑trip transaction costs (taxes, fees, commissions), and tax treatment of rental income and capital gains.
1. Athens, Greece – Score 2 (101 / 146 worldwide)
- Price: ≈ US $4,000–5,000 / m² (prime).
- Yield: ≈ 3.9 % gross (center).
- Round‑trip costs: 12 %–17 % (transfer tax, stamp duty, fees).
- Tax environment: Capital‑gains tax suspended; rental income taxed at standard rates.
- Golden‑visa requirement: Minimum €800,000 property (increase effective 2024); short‑term rentals prohibited.
- Risks: High title‑risk due to incomplete cadastral records, informal building additions, and unregistered inheritance chains; governance score lowest among the seven.
2. Lisbon, Portugal – Score 4 (worst property score – 10)
- Price: ≈ €6,000–7,000 / m² (central).
- Yield: ≈ 4.6 % gross.
- Round‑trip costs: 12 %–17 % (transfer tax, stamp duty, fees).
- Tax on rentals: ~28 % local rate.
- Program change: Real‑estate component removed from Portugal’s golden‑visa in 2023; property purchase now only provides ownership, not residency.
- Risks: Political risk from tightening short‑term‑rental licences; foreign‑ownership restrictions affect returns.
3. Madrid, Spain – Score 6
- Yield: ≈ 3.9 % gross.
- Round‑trip costs: 10 %–20 % (transfer tax, fees, commissions).
- Tax on rentals: Higher withholding for non‑EU landlords.
- Residency status: Golden‑visa program closed to new applicants on 3 April 2025 (Organic Law 1/2025). Remaining options are non‑lucrative, digital‑nomad, or entrepreneur visas.
- Risks: Thin yields further eroded by lengthy tenant‑court disputes (court cases can exceed 18 months). Governance and resilience scores are strong, but cost and demand scores are weak.
4. Limassol, Cyprus – Score 7
- Yield: ≈ 6 % gross (second‑highest in the list).
- Price‑to‑rent ratio: ≈ 17.
- Round‑trip costs: 8 %–14 % (transfer tax, fees).
- Tax: No annual property tax; 20 % capital‑gains tax on property sales.
- Golden‑visa requirement: Minimum €300,000 property + €50,000 annual foreign income.
- Risks: Access score lowest; macro and resilience scores negative due to reliance on an oil‑dependent power grid and a large pipeline of luxury towers that may outstrip demand. Russian buyer share has fallen sharply after sanctions.
5. Valletta (Malta) – Score 18
- Yield: ≈ 5.3 % gross (core market).
- Price: ≈ €5,000 / m² (prime).
- Tax: 15 % final withholding on rental income; 8 % property transfer tax functions as low‑rate CGT; no annual property tax.
- Golden‑visa pathway: Malta Permanent Residence Programme – minimum €375,000 property purchase or €14,000 annual rent plus a government contribution; non‑EU buyers need an immovable‑property permit.
- Risks: High population density and limited land drive price appreciation (60 %–80 % increase over the past decade); market heavily dependent on iGaming sector employment.
6. Dubai, United Arab Emirates – Score 21 (25 / 146 worldwide)
- Yield: ≈ 7 % gross for apartments; ~5 % for villas.
- Price: ≈ $5,700 / m² (city centre).
- Costs: ~8 % total (including 4 % Dubai Land Department fee).
- Tax: No income, property, or capital‑gains tax. Dirham pegged to USD eliminates currency risk for dollar‑based investors.
- Golden‑visa requirement: Minimum AED 2 million (≈ $545,000) for a 10‑year renewable residence permit; no minimum stay. Freehold ownership limited to designated zones.
- Risks: Tenant base primarily expatriates, making rental demand sensitive to regional conflicts and business cycles; weakest resilience score among the seven due to high off‑plan sales (≈ 63 % of 2024 transactions) and supply‑side overshoot.
7. Abu Dhabi, United Arab Emirates – Score 30 (3 / 146 worldwide)
- Yield: ≈ 5.7 % gross (city centre).
- Price: ≈ $5,700 / m²; premium areas (Saadiyat, Yas, Al Reem) range $4,000–$7,000 / m².
- Costs: Near 6 % total (lowest among the seven).
- Tax: No personal income, property, or capital‑gains tax.
- Golden‑visa requirement: Same UAE framework as Dubai; freehold ownership restricted to designated investment zones.
- Risks: Foreign‑ownership restrictions penalized in the score; oil‑price sensitivity and regional geopolitical exposure remain principal concerns. Supply is more tightly managed than in Dubai, reducing oversupply risk.
Practical takeaways for investors
- Permit vs. asset priority: If the primary goal is residency or citizenship, the visa’s cost and conditions should dominate the decision; the property then serves as a vehicle. If the investment return is the main objective, focus on property fundamentals, yields, and transaction costs, regardless of the visa’s attractiveness.
- Liquidity and exit risk: Cities with deep, owner‑occupied markets (e.g., Madrid) offer better exit liquidity, while markets heavily reliant on foreign investors or short‑term rentals (e.g., Dubai) may face sharper demand swings.
- Tax considerations: Zero‑tax jurisdictions (UAE) boost net yields, but investors must account for potential future policy changes and the impact of designated‑zone ownership limits.
- Macro‑environment: Energy dependence (Cyprus), geopolitical exposure (UAE), and regulatory shifts (Portugal, Spain) can materially affect long‑term performance.
Investors should weigh the specific residency or citizenship benefits against the underlying real‑estate economics, using the IMI property scoreboard as a baseline for comparative analysis.
