Top Countries and Cities Where Gen Z Buys Real Estate in 2025

Young buyers aged 18 to 27, part of Generation Z, are becoming one of the most active groups in the international real estate market. According to the ServiceLink State of Homebuying Report 2025, 67% of Gen Z plan to purchase property this year — surpassing Millennials (51%) and Generation X (49%). 

Gen Z has already established a foothold in the market: 26.1% of this generation owned property in 2024. However, they approach transactions cautiously: 43% of potential buyers in 2024 opted out due to high prices and interest rates. This generation prioritizes transparent costs, digital services, and eco-friendly solutions, and they are willing to wait for the «right» property rather than settling for the first available option.

What Drives Gen Z in Choosing Real Estate

Their approach is characterized by the following key traits:

• Early market entry: unlike Millennials, who saved until their 30s, Gen Z starts buying at ages 19–25. They often rely on first-time buyer programs (available in certain countries/states), employer subsidies, or developer installment plans. They prefer smaller, affordable properties over «forever homes.»
• Co-buying: about one-third consider co-buying with friends, partners, or relatives, using legal structures like shared ownership or LLCs for multi-investor projects.
• Technology first: a transaction without online components is unthinkable. Virtual tours, smart home systems, and digital mortgages are standard expectations.
• Lifestyle focus: properties must align with their lifestyle, with proximity to coworking spaces, cafes, and fitness centers.
• Sustainability: young buyers are willing to pay more for energy-efficient homes and green certifications.

According to JLL forecasts, by 2030, Millennials and Gen Z will account for up to 60% of real estate transactions in developing countries.

Where Gen Z Buys Real Estate: Top 10 Countries

Based on affordability, growth potential, quality of life, and alignment with Gen Z values, we compiled a ranking of the most attractive countries.

1. Thailand — Leader in Price-to-Quality Ratio for Young Expats

What attracts Gen Z:

• Foreigners can own condominiums (up to 49% of units in a building).
• Well-developed internet for remote work and a strong expat community.

Popular cities and prices:

• Bangkok: $2,000/m², 5–6% rental yield. Ranked #1 globally for Gen Z by Time Out 2025.
• Chiang Mai: hub for digital nomads, moderate prices ($1,200/m²).
• Pattaya, Phuket: high occupancy for tourist rentals, $1,000/m², up to 8% annual rental yield.

2. Vietnam — Rapid Growth and «Window of Opportunity»

What attracts Gen Z:

• Booming market, increasingly open to foreigners.
• Price growth: +29.6% in Hanoi, +15% in Ho Chi Minh City (2025).
• 2025 legislation allows foreigners to own up to 30% of apartments in a complex or 250 houses per commune.
• Rental yields up to 8–10% in central districts.
• 60% of the population is under 35.

Popular cities and prices:

• Ho Chi Minh City: apartments from $80,000–120,000 (average $3,425/m²).
• Hanoi: fast-growing market, average $3,075/m².
• Da Nang: resort properties with high profitability.

3. Portugal — European Hub for Nomads (with New Tax Conditions)

What attracts Gen Z:

• Convenient for remote work; nomads can obtain residency.
• New IFICI tax program (replacing NHR in 2025): 20% tax rate for highly skilled IT, science, and innovation professionals.
• 300+ sunny days, developed infrastructure.

Popular cities and prices:

• Lisbon: from €300,000, high rental demand.
• Porto: from €180,000, a growing market for young professionals.
• Algarve: from €200,000, resort properties.

4. UAE (Dubai) — Tax Haven for the Ambitious

What attracts Gen Z:

• 0% tax on income and capital gains.
• «Golden Visa» for property purchases from 2M AED (~$545,000).
• Rental yields of 6–10% in popular areas.
• International environment: 85% of the population are expats.

Popular areas and prices:

• Jumeirah Village Circle (JVC): studios from $60,000.
• Dubai South: a developing area near the airport.
• Business Bay: from $150,000, a hub for business activity.

5. Spain — «Soft Landing» in the EU

What Attracts Gen Z:

• Relative affordability compared to other European countries.
• Quality of life: climate, culture, safety.
• Developed infrastructure for nomads.

Popular Cities and Prices:

• Valencia: From €1,800/m², Spain’s third most popular city.
• Málaga: From €2,200/m², a growing tech hub.
• Alicante: From €1,500/m², an affordable alternative to Barcelona.

6. Mexico — Magnet for Digital Nomads in Latin America

What attracts Gen Z:

• Proximity to the USA: simplified logistics and business connections.
• Affordability: apartments in Mexico City from $80,000.
• Rich history and vibrant modern culture.
• Year-round warmth in popular regions.

Popular cities and prices:

• Mexico City: cosmopolitan capital, from $1,200/m².
• Tulum: wellness hub for youth, from $2,500/m².
• Playa del Carmen: beach lifestyle, high tourist rental profitability.

7. Turkey — A Bridge Between Europe and Asia with High Returns

What attracts Gen Z:

• Citizenship-by-investment program for purchases from $400,000.
• High profitability: up to 7–8% in tourist zones.
• Cultural diversity: a blend of Europe and Asia.
• Infrastructure development: major projects like the Istanbul Canal.

Popular cities and prices:

• Istanbul: from $1,800/m², the region’s largest city.
• Antalya: from $1,200/m², seaside resorts with high profitability.
• Izmir: from $1,000/m², Turkey’s tech hub.

8. Colombia — South American Gem

What attracts Gen Z:

• Economic growth: Medellín prices are up 6.14% year-on-year.
• High profitability: 6.33–10.32% depending on the district.
• Quality of life: «City of Eternal Spring» with an ideal climate.
• Affordability: apartments from $60,000–80,000.

Popular cities:

• Medellín: a tech hub with a strong expat community.
• Bogotá: a capital with a developed economy.
• Cartagena: historic center with tourism potential.

9. Philippines — English-Speaking Asia

What attracts Gen Z:

• English language: no language barrier.
• Affordable prices: apartments in Manila from $80,000.
• Growing economy: rapid development of the IT sector.
• Island lifestyle: over 7,000 islands to choose from.

Popular destinations:

• Manila: economic hub, from $1,500/m².
• Cebu: IT hub of the Philippines.
• Boracay: premium resort properties.

10. Georgia — Fast Transactions and Low Taxes

What attracts Gen Z:

• Ease of doing business: top 10 globally in the Ease of Doing Business Index.
• Low taxes: small business status for IT professionals.
• Visa-free regime with most countries.
• Affordability: apartments in Tbilisi from $800/m².

Popular cities:

• Tbilisi: 7–8% rental yield, active rental market.
• Batumi: Black Sea resort properties.
• Kutaisi: a budget-friendly alternative to the capital.

Other destinations gaining popularity among young expats include Panama, Indonesia (Bali), Cambodia, Malaysia, Singapore, and South Korea.

What About the USA?

Top 5 U.S. cities with the highest share of Gen Z buyers, based on 2024–2025 research:

• Grand Rapids, Michigan: 31.45% of mortgage applications from Gen Z.
• Salt Lake City, Utah: 24.79% of applications.
• Milwaukee, Wisconsin: 24.33% of applications.
• Minneapolis, Minnesota: 23.93% of applications.
• Cincinnati, Ohio: 23.80% of applications from Gen Z.

What does it mean: Gen Z prefers affordable university towns and mid-sized markets with predictable rental demand and clear entry costs.

Best Cities for Generation Z (Time Out 2025 Ranking)

Top 10 best cities for Gen Z:

How to Prepare for a Real Estate Purchase: Checklist

Finances:

• Build a credit history starting at 18–20 years old.
• Save for a 10–20% down payment.
• Explore first-time buyer support programs.
• Diversify income sources for stability.

Market research:

• Analyze long-term city/region development trends.
• Study legislation for foreign buyers.
• Assess infrastructure projects and their impact on prices.
• Network with local experts and expat communities.

Risk management:

• Conduct legal due diligence for transactions in unfamiliar jurisdictions.
• Hedge against currency risks for international purchases.
• Insure investments against political and economic risks.
• Plan an exit strategy in case circumstances change.

Gen Z checklist:

• Does the location match my lifestyle?
• Is there potential for price growth in the next 5–10 years?
• Can I legally own property as a foreigner?
• What is the real rental yield?
• How developed is the digital infrastructure?
• Is there a community of like-minded people?
• Does the property align with my environmental values?

Sources: ServiceLink State of Homebuying Report 2025, Redfin Gen Z Analysis, Time Out Cities Index 2025, National Association of Realtors, GlobalPropertyGuide, Knight Frank Research, JLL Research.

Explore current real estate offers in countries popular with Generation Z on Realting.com