Where should investors put their money to win in the property game? The answer might surprise you. After fifteen years of tracking returns across different regions and investment types, the results tell a fascinating story about where real estate fortunes were made and lost.
The East Midlands emerged as the unlikely champion, delivering inflation-adjusted returns over 24%. This region quietly outperformed flashier markets, proving that sometimes the best investments hide in plain sight. London came close with nearly 23% returns, though its glory days were front-loaded in the early 2010s before momentum shifted elsewhere.
The North East tells a classic comeback story. Early losses around 6.5% looked painful, but patient investors who stuck around saw modest gains of 4.73% by 2025. Meanwhile, the North West jumped impressively to 11.2% in the mid-2010s, showing how regional markets can suddenly catch fire.
Southern England’s golden era didn’t last forever. The East, South East, and South West regions saw their fortunes reverse dramatically, with losses reaching 7.63% between 2021-2025. High price-to-income ratios finally caught up with these premium markets, creating negative real returns for investors who bought at peak prices.
Different investment approaches produced wildly different outcomes. Real estate investment trusts delivered solid 10.5% annual returns, beating the broader stock market. Private equity real estate funds did even better at 15.3% annually, though some exceptional portfolios achieved eye-popping 28% returns through active management. While property markets can experience dramatic shifts, currency trading offers an alternative investment avenue with over $7 trillion traded daily across global markets.
Rental income proved essential during stagnant periods. High-yield markets like Indian River County, Florida, and St. Louis delivered impressive 14.6% gross rental yields. Combined rental income and property appreciation typically ranged from 10% to 14% annually, with long-term income averaging 5.9% in core U.S. markets.
The biggest lesson? Affordability matters more than prestige. Northern regions with reasonable price-to-income ratios showed better resilience than expensive southern markets. Core real estate investments provided steady 7.3% annual returns with lower volatility, while public markets remained more unpredictable. Unlike traditional stocks and bonds, real estate often performs better during macroeconomic crises when equity returns face pressure. The market rebalance indicates this correction favors long-term stability over speculative growth. Sometimes the tortoise really does beat the hare.
