29/01/2025
Analyses
Christie’s International Real Estate has identified five global luxury real estate markets on the rise in 2025, from the west coast of Australia to the east coast of the U.S. A host of factors are spurring demand in these markets, including high quality of life, relative value, strong local economies and tax incentives. In many markets, high demand is spurring a wealth of new developments, adding excitement and interest.
The second-largest city in the European Union, Madrid is the political, economic and cultural center of Spain and the leading economic hub of southern Europe. The city’s luxury property market has been undergoing notable growth, sustained by a robust economy, labor market stability, and significant foreign investment, particularly from North America and Latin America. Spain’s economy was projected to increase by 3% in 2024 – four times faster than the rest of the Eurozone. The country’s economic stability has been fundamental for its real estate market, bolstering market confidence, encouraging investment, and generally sustaining high demand. An upward pressure on prices, especially in central and well-connected transit nodes, is a natural consequence of high demand, which can make property purchases both attractive and more expensive, says Hans Veenhuijsen, owner and CEO of Christie’s International Real Estate Madrid.
While historic properties in prestigious neighborhoods like Salamanca and Chamberí remain popular, high-end developments are transforming areas such as Madrid Río and northern districts like Chamartín. Additionally, Madrid has seen an increase in sustainable building practices, catering to environmentally conscious buyers. Luxury properties in the exclusive Salamanca district fetch some of the highest prices in the nation, averaging €8,000 to €22,000 per square meter.
Since 2013, the country’s Golden Visa program has been a boon to the market, allowing residency in exchange for real estate purchases of more than €500,000. However, the program, enacted to boost the Spanish economy and increase foreign investment, has sunset as of January 1, 2025. Emerging trends such as telecommuting could influence the demand for housing in peripheral areas if professionals choose to live farther from the city center, while the development of new infrastructure and urban projects could alter market dynamics, Veenhuijsen adds. He is optimistic about the continued growth of the Madrid real estate market through 2025. “Demand is likely to remain strong, but investors and buyers should be mindful of fluctuations and emerging trends that could impact the market,” he says.
Bulgaria beckons with its own beauty, history and an affordability advantage over other eastern and central European countries, despite steadily rising prices and low inventory. Bulgaria’s other advantages include its low tax rates, as well as some of the lowest mortgage rates in Europe, while favorable banking policies have eased access to credit.
In the historic capital of Sofia, Bulgaria’s luxury sector saw a 50% year-over-year increase in sales for homes priced at €600,000 and up in 2023, according to Vesela Ilieva, managing partner of Unique Estates I Christie's International Real Estate, the exclusive Christie’s International Real Estate affiliate in Bulgaria. In 2024, nearly a third of the company’s listings traded at asking price, and about 15% sold above asking, which, Ilieva says, “demonstrates the confidence and commitment of clients in the success of luxury real estate as a valuable investment.” “High-quality investment properties with attractive locations, well-maintained communal areas, and proven profitability sell within one to two months and are increasingly sold without any negotiation on the listing price,” Ilieva adds.
From 4Q23 to 1Q24, home prices in Bulgaria rose 7.1%, the largest increase in the EU and the largest jump in the country since 2007. Prices are expected to grow by 15% in 2025. The market remains very active in traditionally desirable areas within Sofia, including the Lozenets, Iztok and Izgrev neighborhoods. The Doctor’s Garden neighborhood remains one of the priciest areas in the capital, along with other sought-after locations like the area around the historic Alexander Nevsky Cathedral and the National Assembly. In the high-end segment, the average price for an apartment is around €3,500 per square meter, while in iconic locations in Sofia, prices can be twice as high. “Our expectations are that the luxury real estate market in Sofia and Bulgaria as a whole will remain stable and show growth,” said Ilieva.
Set along the Mediterranean Sea just north of Greece, Albania has attracted a steadily increasing cadre of tourists, investors and developers in recent years, enticed by its pristine beaches, rugged mountains, welcoming culture and stable economic and political climate. “Albania’s real estate market is seeing significant growth in both supply and demand driven by both local and foreign interest, from around Europe and overseas,” says Kris Maranda, managing partner at The Maranda Real Estate Group, the Christie’s International Real Estate affiliate in the country. “With its beautiful landscape and current market conditions, Albania is set to be the next luxury hub in southeast Europe.”
The United Nations World Tourism Organization recently ranked Albania as the fastest growing tourist destination in Europe. Developers have also taken notice, with a raft of new development projects underway in the country, including Grand Park Skyline, a luxurious residential tower in the capital city of Tirana, and Farka Lakefront, about six miles southeast. Additional high-end development is taking place on the country’s southwestern coast, along the Albanian Riviera. Folie Village, a new luxury waterfront community exclusively represented by the Maranda Real Estate Group, is scheduled for completion in 2026, while Affinity Partners, the private equity firm headed by Jared Kushner, has plans to redevelop a former military base, Sazan Island, into a luxury Aman-branded eco-resort.
For investors seeking high returns on minimal expenditure, Albania’s tax incentives, streamlined procedures for property acquisition, low residential property tax (.05%), and reasonable capital gains tax make the country an attractive option. Affordability advantage over Greece, on Albania’s southern border, and Montenegro, its neighbor to the north, is driving savvy investors to look at Albania, especially as tourists continue to flock to the country. Buyers can expect annual property appreciation rates of 6-7%, according to Maranda.
The economic engine and capital of Western Australia, Perth is embarking on a major expansion of its luxury real estate market. Set along the far west coast of Australia, the nation’s fourth-largest city traditionally has flown under the radar for international buyers and investors. But interest in Western Australia has exploded in recent years, with the state experiencing the fastest population growth in the nation, largely driven by overseas migration.
According to Shelley Scorer, CEO of Christie’s International Real Estate Western Australia and South Australia, a host of factors are pushing the market for luxury property in Perth, not the least of which is affordability compared to cities on the country’s east coast such as Sydney and Melbourne. Factor in Perth’s temperate climate, extensive parks and beaches, a vibrant wine region to the south, nature reserves, the government’s record AU$10.6 billion infrastructure investment, low unemployment, quality schools and universities, and excellent health care – and it’s not hard to see why Perth is attracting attention.
Prices for luxury single-family residences in and around Perth range from AU$1.5-30 million, Scorer says. Some of the most sought-after luxury properties are in the city’s western suburbs, including Cottesloe and Peppermint Grove. In this area, locally known as the “Golden Triangle,” homes typically sell for around AU$3-4 million. And Perth is a dream for international travelers with direct flights to more than 50 destinations in 18 countries. What’s more, the city’s airport is the only one “down under” with non-stop flights to Europe—via Qantas’ daily service to London, Paris, and Rome.
It’s no longer simply “The Shore.” From Asbury Park to Long Branch, coastal Monmouth County, New Jersey, is emerging as a prime marketplace for luxury real estate. With vibrant seafront communities, expansive suburbs, great beaches, and fine dining, sporting and cultural attractions—and easy access to Manhattan in under an hour– high-end developers and luxury buyers are betting on the Jersey Shore. “We are seeing an increasing number of high-net-worth buyers from across the Tri-State Area thanks to a spate of new developments in Long Branch, truly an emerging luxury hotspot along the New Jersey coast,” says Sonja Cullaro, co-founder and executive vice president of Christie’s International Real Estate Group.
One such development is The Atlantic Club, a new, luxury seaside condominium building featuring 132 one- to five-bedroom units with oceanfront views. Scheduled for completion in 2026, The Atlantic Club offers more than 75,000 square feet of lifestyle amenities including an oceanfront pool, yoga and cycling studios, a children’s playroom, and spaces dedicated to games, pets, relaxation and even virtual reality activities. One of the project’s penthouses recently sold for US$5.95 million, a record for a condominium in Monmouth County.
Adding to the momentum, global streaming service Netflix is currently planning a US$900 million production studio on the site of a 289-acre former military base near the shore in Oceanport, N.J. The project has received planning approvals, with the promise of 3,500 construction jobs and 1,500 permanent production hires. Overall, the Monmouth County real estate market saw a 4% increase in residential sales over US$1 million in 2024 compared to 2023, an upward trend that Cullaro has seen firsthand at her firm. “Of our top sales last year, about 70% came from Monmouth County and 30% from Bergen County. Usually it’s the opposite,” she notes.
Source: Christie's International Real Estate
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