Top 7 European cities for real estate investment in 2025

What makes a city the ultimate destination for real estate investors? Is it the allure of cobblestone streets, the hum of a thriving market, or the promise of solid financial returns? 

In 2025, the answer is clear: savvy investors are chasing cities where postcard-perfect charm meets cold, hard profitability, with rental yields leading the charge as the defining metric.

Rental yield—simply put—is the annual rental income as a percentage of the property’s purchase price. It’s the golden rule of how quickly your investment starts paying you back. 

In a market where every decimal point matters, European cities with high yields are taking centre stage and proving that beauty and profits can go hand in hand.

Here’s a look at the top five European cities for real estate investment in 2025, according to data from Global Property Guide. 

Riga, Latvia’s capital and a UNESCO World Heritage site, tops the European charts with an impressive 8.47% average rental yield. 

Known for its stunning Art Nouveau architecture and charming Old Town, this jewel of the Baltics combines affordability with a high quality of life. 

Whether sipping black balsam (a traditional herbal liqueur) or wandering its vibrant Central Market, there’s something magical about this Baltic gem.

Best choice for investors: A two-bedroom apartment in the Agenskalns neighbourhood delivers a jaw-dropping 11.68% yield. Priced at €174,700 and renting for €1,700 monthly, it’s an investor’s dream come true. Known for its green spaces and historic wooden architecture, Agenskalns is a neighbourhood on the rise.

Dublin isn’t just about Guinness and lively pubs—it’s also a rental powerhouse. 

A tech hub and home to many multinational headquarters, Dublin boasts strong demand for