Long-term rental properties are one form of real estate investment that many people are interested in. This concept refers to property that the owner rents out for a minimum period of one year. Either for residence, work purposes, or education.
However, to be successful in this sector, investors need to be careful in choosing a location. This is because location greatly determines the stability of property values, potential price increases, and ongoing rental demand.
Get to Know About Top 5 Cities for Long-Term Rental Properties
Several world cities have proven to be ideal places for long-term rental property investments. This is due to strong economic growth, increasing populations, and high tenant demand.
Based on the latest data for 2025, here are the five best cities for long-term rental property investments. These five cities have an attractive combination of population growth, competitive rental yields, and low property vacancy rates. Making it a strategic location for stable and profitable property investment.
1. Austin, Texas (USA)
Austin continues to grow as a major technology hub in the United States. The city is experiencing a surge in population growth and is a magnet for young professionals and remote workers. Especially those looking for a dynamic yet affordable living environment.
Rental demand in Austin is very high due to the combination of growing employment, modern lifestyle, and adequate infrastructure. With an average rental yield reaching 6.2%. The annual population growth rate is 2.7%, and the vacancy rate is below 5%. Austin is the main choice for investors looking for long-term returns and market stability.
2. Dubai, United Arab Emirates
Next is Dubai which remains a favorite destination for global investors. Mainly because of fiscal advantages such as no personal income tax, as well as world-class infrastructure that continues to advance.
The city attracts many expatriates and tourists, which creates high rental demand for residential properties. The average rental yield in Dubai reaches 7.1%, making it one of the highest globally.
With a population growth of 1.8% per year and a vacancy rate of 6.0%, Dubai remains an attractive market, especially for investors looking for positive cash flow and long-term capital appreciation potential.
In fact, an investor shared his experience on the Conor Overseas YouTube channel. Where initially he rented out short-term property. However, after 2 years, he decided to change the rule to long-term rental. So, the results are much more promising.
3. Singapore
Singapore has long been known as a country with very high economic and political stability. Although land is very limited, demand for property continues to increase. Especially from expatriates and professional workers.
With an average rental yield of 4.8% and a very low vacancy rate of 3.2%, Singapore offers a strong and relatively risk-free rental market. Annual population growth of 1.4% also shows a stable trend. This is a positive signal for long-term property investors.
4. Melbourne, Australia
Not much different from Singapore, Melbourne is one of Australia’s main cities that has a healthy and prospective property investment climate. This city has a high quality of life, many well-known educational institutions, and abundant job opportunities.
Demand for rental properties comes from international students, professional workers, and families. The average rental yield reaches 4.9%, while the population growth rate is at 1.6% per year. With a vacancy rate of just 3.5%, Melbourne offers an attractive combination of investment security and stable long-term growth potential.
5. Lisbon, Portugal
Last but not least, Lisbon has attracted many foreign investors, especially thanks to the Golden Visa program. The permits make it easier for foreign nationals to obtain residency permits with property investments. In addition, the city is developing into a growing technology hub, and remains a top destination for tourists from all over the world.
These factors drive consistent rental demand. Lisbon has an average rental yield of 5.5%, a population growth of 1.5% per year, and a vacancy rate of 5.1%. With its historical value and attractive lifestyle, Lisbon promises not only financial benefits but also aesthetic and lifestyle value.
Long-term rental properties do require careful planning, especially in choosing a location. However, in some of the cities above, the opportunity for profit is no longer a pipe dream. With proper management, investing in this property can be a source of stable and sustainable passive income.
