Dubai has been a popular choice for British property investors since the early 2000s, when designated freehold areas were introduced and foreign buyers began flocking to the glitzy emirate.
Traditionally a safe haven away from turbulence in surrounding Middle Eastern states, Dubai has seen high ROI (return on investment) rates of between six and nine per cent, low income tax – plus year-round sun and world-class infrastructure.
However, following the outbreak of war between Iran and the US/Israel, the UAE has become an increasingly volatile landscape – causing many Britons to reconsider both investment and emigration plans in the region.
George Colley, chief executive of Kingdom Property Advisers, which works in the region, suggests that while the long-term impact of the strikes on Dubai’s property market remains unclear, investment in the state is currently inadvisable.
His thoughts are echoed by global real estate expert Mikk Kalmet of Global Property Guides, who is equally cautious: ’Every day this drags out, the less and less attractive Dubai becomes,’ he says.
But if your property investment plans have been affected or derailed by the ongoing conflict in the Middle East – fear not. We’ve spoken to experts and advisors about alternative markets to consider for the remainder of 2026 and beyond.
Smoke rises over Dubai airport… the UAE has become an increasingly volatile landscape
Ranging from European states close to home, to more unconventional opportunities in Latin and Central America, here are the real estate markets to consider while the fate of Dubai hangs in the balance.
EUROPE
Greece
Especially for a capital city, Athens offers great value for money
There are relatively few restrictions in place for foreigners wishing to buy in Greece, making it an attractive choice for British property investors – particularly when combined with the country’s political stability and booming tourism sector.
Gross rental yields are mid-range – usually between four to 4.5 per cent nationally, and five to 5.4 per cent in Athens, according to Next Generation Equity – but prices remain lower than many Western European countries.
Kalmet points out that especially for a capital city, Athens offers great value for money. Entry point prices can start from approximately €1,900 (£1,643) per square meter, compared with averages of €4,000 (£3,460) in Lisbon, and between €4,500 (£3,892) and €5,000 (£4,324) in Barcelona.
Georgia
Georgia’s capital Tbilisi… the country is a particularly strong emerging market for foreign investors to consider
Although not a traditional focus for British property investors, Kalmet highlights Georgia as a particularly strong emerging market for foreign investors to consider.
The country offers relatively low entry prices and some of Europe’s highest gross rental yields – underscored by a fast-growing expat community, a favourable climate and great food and wine.
Most investment properties start at $80,000-100,000 (£59,651-£74,564) meaning prices are between two to three times lower than Dubai, and there is high rental demand driven by students and expats and a lack of rental restrictions.
Estimated gross rental yields start from five per cent in Tbilisi’s upmarket suburb Vake, and average between seven and nine per cent in the peaceful neighbourhood of Dighomi, on the outskirts of the capital.
CENTRAL AND LATIN AMERICA
Panama
The Central American country of Panama offers attractive corporate tax rates
The Panama real estate and rental market has grown significantly following the pandemic, with an increased number of investment opportunities provided by the Qualified Investor Visa programme that was introduced in October 2020.
While rental yields are not as strong as other markets – they average at around four to five per cent for turnkey properties – residency-via-investment, or ‘Golden Visa’ rates start at an affordable $200,000-300,000 (£149,325-£223,988), compared to approximately $450,000 (£335,981) in Dubai.
The Central American country also offers attractive corporate tax rates: Panama operates a territorial tax system, meaning income earned overseas is not taxed domestically, and there are no prior approvals or registration requirements for direct foreign investment.
The forecast for the year ahead is also positive. Property experts The Latin Investor anticipate that residential property prices will rise by approximately 5.5 per cent in nominal terms over the full calendar year, with rental returns between six and ten per cent after expenses.
Investment advisor Liz Laroquette, who has been working in the Panama real estate market for 17 years says: ‘We’re seeing an influx of interest from investors who have done well in Dubai and are now reassessing their options.
‘Panama offers something similar in terms of lifestyle appeal and dollar-denominated assets, but with a much earlier price point and a longer runway for growth. The infrastructure is in place, supported by a stable banking system, a service-driven economy anchored by the Canal, and genuine residency pathways tied to property investment.’
Mexico and Colombia
Foreign investors are fully permitted to own property in Mexico
While usually overlooked by Western investors, Kalmet highlights the growing viability of the Latin American property market for foreign investors.
‘Lots of people don’t consider Latin America because of concerns about political stability and safety,’ he says. ‘But in reality, the biggest threat in places like Mexico and Colombia is actually currency fluctuation – which can be actively managed.’
There are no minimum thresholds for investment in either country, with entry price points from around $110,000 (£82,128) in Colombia and approximately $200,000 (£149,325) in Mexico.
Foreign investors are fully permitted to own property in both countries, albeit within a restricted zone in Mexico.
ASIA
Singapore
Singapore offers one of the strongest and most resilient real estate markets in Asia
With some of the most expensive properties in the world (private homes average around £1.2million), Singapore is likely to be the choice of high net-worth, experienced property investors.
However, for those with the capital to spend, the state offers one of the strongest and most resilient real estate markets in Asia – if not globally – supported by a robust legal system and political stability.
British investors will also be drawn in by Singapore’s lack of capital gains tax, as well as a lack of purchase restrictions beyond a 60 per cent Additional Buyer’s Stamp Duty (ABSD), which can be managed via trusts or structures.
Indeed, Pietrocola acknowledges that ‘even if yields are low‘, Singapore stands out for its ‘security‘ and ‘long-term capital protection‘.
Malaysia
Malaysia has quietly emerged as one of Southeast Asia’s most strategic opportunities for private property investors
Boosted by post-pandemic employment market growth, Malaysia has quietly emerged as one of Southeast Asia’s most strategic opportunities for private property investors.
It’s one of few countries in the region to actually permit foreign freehold land ownership and has far lower entry prices than neighbours Singapore and Thailand; property in capital Kuala Lumpur is sold at approximately $2,195 (£1,629) per square metre, compared to $3,729 (£2,784) in Thailand and a whopping $23,450 (£17,508) in Singapore, according to Numbeo.com.
Group managing director of Savills Malaysia Group, Datuk Paul Khong, also anticipates that the Malaysian property sector will see a noticeable ‘step up’ throughout the remainder of 2026, bolstered by interest rates cut to 2.75 per cent as of July 2025.
His thoughts are echoed by Alessandro Rocco Pietrocola, CEO of business advisory firm Astorts Group, who says: ‘Malaysia is probably one of the most interesting [property markets] today in terms of risk and reward, especially for lifestyle combined with decent tax returns.’
Foreign investors in the Malaysian property market can also use a combination of corporate and residency structuring to achieve effective tax rates, including zero per cent rates for certain streams of income.
THE CARIBBEAN
The Cayman Islands
There is no income, capital gains, property or inheritance tax in the western Caribbean state
The Cayman Islands have long been a popular choice for British property investors, offering stability as a British Overseas Territory, with a well-regulated financial sector and a legal system based on English common law.
The Cayman Islands also offer far greater tax efficiency than back home in the UK. There is no income, capital gains, property or inheritance tax in the western Caribbean state, and rentals average an ROI of approximately four to six per cent.
‘While the yields in the Cayman Islands are slightly lower, the property market is well-established, making it a reliable choice for more risk-averse foreign investors,’ says Kalmet.
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