Authored by the expert who managed and guided the team behind the Laos Property Pack
Everything you need to know before buying real estate is included in our Laos Property Pack
Rental yields in Laos remain attractive compared to more developed Southeast Asian markets, making it an interesting option for investors seeking higher returns.
This blog post covers everything you need to know about rental yields across Laos, from Vientiane to Luang Prabang, and we update it regularly to reflect the latest market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Laos.
Insights
- Gross rental yields in Laos average around 6.5% in early 2026, which is notably higher than neighboring Thailand or Vietnam where yields typically range between 4% and 5%.
- Vientiane's expat-heavy neighborhoods like Phonxay and Sisattanak can deliver gross yields of 7% to 9%, driven by consistent demand from international organizations and embassies.
- Net yields in Laos typically run about 1.5 to 2 percentage points below gross yields, with property management and maintenance costs being the main deductions.
- Luang Prabang's tourism-driven rental market sees higher seasonal vacancy, pushing effective yields down despite strong nightly rates during peak months.
- Smaller units under 60 square meters in Vientiane generate the best yield per square meter, often exceeding 8% gross due to strong demand from young professionals.
- The Vientiane-Boten Railway, now operational, is boosting rental demand in areas near the new stations along the corridor.
- Foreign investors in Laos typically hold leasehold interests, which affects resale value and should be factored into long-term yield calculations.
- Vacancy rates in central Vientiane hover around 5% to 8%, but can spike to 15% or more in less central districts with oversupply of new developments.
What are the rental yields in Laos as of 2026?
What's the average gross rental yield in Laos as of 2026?
As of early 2026, the average gross rental yield in Laos sits at around 6.5%, which is higher than what you would find in more developed Southeast Asian markets like Thailand or Malaysia.
Most typical residential properties in Laos fall within a gross yield range of 5% to 8.5%, depending on the location and property type.
Compared to the broader Southeast Asian region, Laos offers yields that are roughly 1.5 to 2 percentage points higher, reflecting the country's emerging market status and the added risks investors take on.
The single most important factor driving gross yields in Laos right now is the concentration of international organizations, NGOs, and embassies in Vientiane, which creates steady demand for quality rental housing from expatriates willing to pay premium rents.
What's the average net rental yield in Laos as of 2026?
As of early 2026, the average net rental yield in Laos is approximately 4.8%, after accounting for all recurring ownership costs.
The typical gap between gross and net yields in Laos ranges from 1.5 to 2 percentage points, which is slightly wider than in more mature markets due to higher management and maintenance costs.
In Laos specifically, property management fees tend to be the largest recurring expense that reduces gross yield to net yield, especially for foreign owners who rely on local managers to handle tenant relations and upkeep.
Most standard investment properties in Laos deliver net yields between 3.5% and 6.5%, with the wide range reflecting differences in property age, location quality, and how hands-on the owner is with management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Laos.
We made this infographic to show you how property prices in Laos compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Laos in 2026?
In Laos, local investors and experienced expat buyers generally consider a gross rental yield of 7% or higher to be "good" in 2026, given the additional risks and management challenges of investing in an emerging market.
The threshold that separates average-performing properties from high-performing ones in Laos typically falls around 6.5% gross, meaning anything above that puts you in the upper tier of rental investments in the country.
How much do yields vary by neighborhood in Laos as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Laos can be as wide as 3 to 4 percentage points, which is significant for investment planning.
Neighborhoods that typically deliver the highest rental yields in Laos are those with strong expat or worker demand but without premium price tags, such as Phonphanao, Dongphosy, and parts of Sikhottabong district in Vientiane.
The lowest yields in Laos tend to appear in upscale or tourist-premium areas like central Luang Prabang's heritage zone and the prime diplomatic quarters of Sisattanak in Vientiane, where purchase prices are high relative to achievable rents.
The main reason yields vary so much across neighborhoods in Laos comes down to how purchase prices are set: some areas price in prestige, lifestyle, or future expectations, while rents stay grounded in what tenants can actually pay each month.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Laos.
How much do yields vary by property type in Laos as of 2026?
As of early 2026, gross rental yields across different property types in Laos range from around 4.5% for larger detached houses up to 8.5% for well-located studios and small apartments.
Studios and compact one-bedroom units currently deliver the highest average gross rental yield in Laos, typically between 7% and 8.5%, because they attract steady demand from young professionals and short-term expats.
Larger detached houses and luxury villas deliver the lowest average gross rental yield in Laos, often in the 4.5% to 6% range, since their high purchase prices are not matched by proportionally higher rents.
The key reason yields differ between property types in Laos is that rents do not scale up in proportion to property size or price, so smaller, more affordable units generate more income per dollar invested.
By the way, you might want to read the following:
What's the typical vacancy rate in Laos as of 2026?
As of early 2026, the typical residential vacancy rate in Laos for investment properties sits around 6% to 10%, translating to roughly 3 to 5 weeks empty per year for well-priced units in good locations.
Vacancy rates across different neighborhoods in Laos can range from as low as 4% in high-demand expat areas of Vientiane to over 15% in oversupplied new developments or less central districts.
The main factor driving vacancy rates in Laos right now is the balance between new construction and actual renter demand, with some areas seeing a surge of new apartments that outpaces the growth in tenants.
Compared to regional averages, Laos has slightly higher vacancy rates than neighboring Thailand or Vietnam, reflecting its smaller and less liquid rental market.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Laos.
What's the rent-to-price ratio in Laos as of 2026?
As of early 2026, the average annual rent-to-price ratio in Laos is approximately 6.5%, or about 0.54% monthly, which means that for every $100,000 of property value, you can expect around $6,500 in annual rent.
A rent-to-price ratio above 6% is generally considered favorable for buy-to-let investors in Laos, and this ratio is essentially the same metric as gross rental yield when you are looking at unlevered ownership.
Compared to other Southeast Asian cities, Laos offers a more attractive rent-to-price ratio than Bangkok, Ho Chi Minh City, or Kuala Lumpur, where ratios typically fall between 4% and 5.5%.
We have made this infographic to give you a quick and clear snapshot of the property market in Laos. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Laos give the best yields as of 2026?
Where are the highest-yield areas in Laos as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Laos are Phonphanao and Dongphosy in Vientiane, along with select areas near the new railway stations in Vang Vieng.
In these high-performing areas like Phonphanao and Dongphosy, investors can expect average gross rental yields in the range of 7.5% to 9%, which is well above the national average.
What these high-yield areas in Laos share is a combination of affordable purchase prices, proximity to employment centers or transport hubs, and steady demand from local professionals or budget-conscious expats.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Laos.
Where are the lowest-yield areas in Laos as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Laos are the UNESCO heritage core of Luang Prabang, the prime diplomatic area of Sisattanak in Vientiane, and the upscale riverside developments along the Mekong in central Vientiane.
In these low-yield areas, average gross rental yields typically range from 4% to 5.5%, as high property prices are not matched by proportionally higher rents.
The main reason yields are compressed in these areas of Laos is that buyers pay a premium for prestige, heritage, or lifestyle factors, while rental demand and tenant budgets do not stretch to match those elevated purchase prices.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Laos.
Which areas have the lowest vacancy in Laos as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Laos are Phonxay, Sisattanak, and Saysettha in Vientiane, where international organizations and embassies drive consistent tenant demand.
In these low-vacancy areas, vacancy rates typically stay between 3% and 5%, meaning units rarely sit empty for more than a couple of weeks between tenants.
The main demand driver keeping vacancy low in these areas of Laos is the presence of embassies, UN agencies, and international NGOs, whose staff need quality housing and often have employer-backed rental budgets.
The trade-off investors face when targeting these low-vacancy areas is that purchase prices are significantly higher, which compresses yields even though occupancy is very stable.
Which areas have the most renter demand in Laos right now?
The top three neighborhoods currently experiencing the strongest renter demand in Laos are Phonxay and Sisattanak in Vientiane, along with the old town area of Luang Prabang for tourism-related rentals.
The typical renter profile driving demand in these areas includes expatriate professionals working for international organizations in Vientiane, plus tourism and hospitality workers in Luang Prabang.
In these high-demand neighborhoods, rental listings typically get filled within 1 to 3 weeks for well-priced units, compared to 4 to 8 weeks in less sought-after areas.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Laos.
Which upcoming projects could boost rents and rental yields in Laos as of 2026?
As of early 2026, the top three upcoming infrastructure or development projects expected to boost rents in Laos are the Vientiane-Boten Railway expansion, the Luang Prabang airport upgrade, and the new Vientiane urban development zones near the new train stations.
Neighborhoods most likely to benefit from these projects include areas near Vientiane Railway Station, the corridor between Vientiane and Vang Vieng, and the expanded commercial zones around Wattay in Vientiane.
Once these projects are fully completed and operational, investors might realistically expect rent increases of 10% to 20% in the most directly affected neighborhoods over the next 2 to 3 years.
You'll find our latest property market analysis about Laos here.
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What property type should I buy for renting in Laos as of 2026?
Between studios and larger units in Laos, which performs best in 2026?
As of early 2026, studios and compact one-bedroom units outperform larger units in Laos in terms of both rental yield and occupancy rates, making them the better choice for investors focused on income.
Studios in Laos typically achieve gross rental yields of 7% to 8.5% (around 6 to 8 million LAK, $400 to $550 USD, or 370 to 510 EUR per month for a typical unit), compared to 5% to 6.5% for larger two or three-bedroom apartments.
The main factor explaining this difference is that Laos has a growing population of young professionals and single expats who need affordable, well-located housing, driving strong demand for smaller units.
One scenario where larger units might be the better investment is when targeting families working for international organizations in Vientiane, who typically receive generous housing allowances and prefer spacious apartments with multiple bedrooms.
What property types are in most demand in Laos as of 2026?
As of early 2026, the most in-demand property type in Laos is modern apartments in gated developments with security and amenities, particularly those located in central Vientiane.
The top three property types ranked by current tenant demand in Laos are modern apartments, serviced apartments for short-term expats, and well-maintained townhouses in convenient locations.
The primary trend driving this demand pattern is the growing expatriate and NGO workforce in Vientiane, combined with young local professionals seeking higher living standards than traditional housing offers.
One property type currently underperforming in demand is older standalone houses without modern security or parking facilities, as tenants increasingly prioritize convenience and safety.
What unit size has the best yield per m² in Laos as of 2026?
As of early 2026, units between 35 and 55 square meters deliver the best gross rental yield per square meter in Laos, hitting the sweet spot between affordability and functionality for renters.
For this optimal unit size in Laos, gross rental yield per square meter typically ranges from 140,000 to 180,000 LAK ($9.50 to $12 USD, or 8.80 to 11 EUR) annually per square meter.
Smaller units below 30 square meters can feel too cramped for the expat market, while units above 80 square meters dilute rental income across too much space that tenants are not willing to pay proportionally more for.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Laos.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Laos versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Laos as of 2026?
What are typical property taxes and recurring local fees in Laos as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Laos ranges from 500,000 to 2,000,000 LAK ($35 to $135 USD, or 32 to 125 EUR), depending on the property's assessed value and location.
Other recurring local fees landlords must budget for annually in Laos include land registration renewal fees and neighborhood service charges, typically adding another 300,000 to 800,000 LAK ($20 to $55 USD, or 18 to 50 EUR) per year.
In total, these taxes and fees typically represent about 3% to 5% of gross rental income in Laos, which is relatively modest compared to many other countries but still worth budgeting carefully.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Laos.
What insurance, maintenance, and annual repair costs should landlords budget in Laos right now?
The estimated annual landlord insurance cost for a typical rental property in Laos ranges from 600,000 to 1,500,000 LAK ($40 to $100 USD, or 37 to 92 EUR), covering basic property and liability protection.
Landlords in Laos should budget approximately 1% to 1.5% of property value per year for maintenance and repairs, which translates to roughly 3,000,000 to 6,000,000 LAK ($200 to $400 USD, or 185 to 370 EUR) annually for a typical apartment.
The type of repair expense that most commonly catches landlords off guard in Laos is air conditioning system failures, as the tropical climate means these units run constantly and wear out faster than expected.
Combining insurance, maintenance, and repairs, landlords should realistically budget around 4,000,000 to 8,000,000 LAK ($270 to $535 USD, or 250 to 495 EUR) annually to avoid unpleasant surprises.
Which utilities do landlords typically pay, and what do they cost in Laos right now?
In Laos, tenants typically pay for their own electricity and water usage, while landlords may cover common area electricity, internet connection setup, or building maintenance fees in apartment complexes.
When landlords do cover any utilities in Laos, the estimated monthly cost ranges from 200,000 to 500,000 LAK ($13 to $33 USD, or 12 to 30 EUR), primarily for common area charges or internet service included in the rent.
What does full-service property management cost, including leasing, in Laos as of 2026?
As of early 2026, full-service property management fees in Laos typically run between 8% and 12% of monthly rent (around 400,000 to 900,000 LAK, $27 to $60 USD, or 25 to 55 EUR per month for a typical unit), covering tenant communication, rent collection, and basic maintenance coordination.
On top of ongoing management, the typical leasing or tenant-placement fee in Laos ranges from one-half to one full month's rent (1,500,000 to 3,500,000 LAK, $100 to $235 USD, or 92 to 215 EUR), charged each time a new tenant is placed.
What's a realistic vacancy buffer in Laos as of 2026?
As of early 2026, landlords in Laos should set aside approximately 8% to 10% of annual rental income as a vacancy buffer to account for gaps between tenants and re-leasing costs.
In practice, this translates to roughly 4 to 5 weeks of vacancy per year for a typical investment property in Laos, though well-located units in high-demand areas may experience less downtime.
Buying real estate in Laos can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Laos, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Lao Statistics Bureau | It's the official national statistics agency of Laos, responsible for census and economic data. | We used it to anchor population, housing, and vacancy definitions. We cross-referenced rental demand patterns with demographic trends. |
| Ministry of Natural Resources and Environment | It manages land registration and property valuation in Laos. | We used it to verify property transaction prices. We referenced their land valuation guidelines for assessing property worth. |
| Ministry of Finance of Laos | It's the government body setting tax rates and fiscal policy. | We used it to source accurate property tax rates. We validated annual fee structures against their official schedules. |
| Invest in Laos | It's the official investment promotion agency for Laos. | We used it to understand foreign ownership rules. We referenced their investor guidance for leasehold structures. |
| Électricité du Laos | It's the national electricity utility with official tariff schedules. | We used it to estimate utility costs for landlords. We referenced their residential rate tables for budgeting guidance. |
| Lao National Chamber of Commerce and Industry | It represents the private sector and publishes business cost data. | We used it to validate property management fee ranges. We cross-referenced their member surveys for operating cost benchmarks. |
| Ministry of Public Works and Transport | It oversees infrastructure development and transport projects. | We used it to identify upcoming projects affecting rental demand. We referenced their project announcements for investment timing. |
| Laos-China Railway Company | It operates the Vientiane-Boten Railway with official station and traffic data. | We used it to map transport-driven rental demand shifts. We referenced station locations for neighborhood yield analysis. |
| UN Laos | It coordinates UN agency operations and expatriate presence in Laos. | We used it to estimate international organization demand for housing. We referenced their presence for neighborhood demand mapping. |
| Lao Department of Tourism | It manages tourism policy and heritage site regulations. | We used it to understand Luang Prabang's unique rental dynamics. We referenced their heritage guidelines for property restrictions. |
| Global Property Guide | It's an independent research firm tracking rental yields across countries. | We used it to benchmark Laos yields against regional markets. We validated our methodology against their established approach. |
| Lao Immigration Department | It manages visa and residence permit data for foreigners in Laos. | We used it to estimate expatriate population size. We referenced permit data to understand renter demographics. |
| Bank of the Lao PDR | It's the central bank publishing exchange rates and economic indicators. | We used it for currency conversion accuracy. We referenced their economic data for market context. |
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