04/07/2025
Analyses
Published in Unique Estates Life - Spring Issue 2025
The global brand for the world’s most prestigious properties – Christie’s International Real Estate – has identified five global markets that are gaining popularity in 2025, from the western coast of Australia to the eastern coast of the United States. Various factors drive demand, including high quality of life, strong local economies, and tax incentives.
The second-largest city in the European Union, Madrid, is Spain’s political, economic, and cultural center, as well as a leading economic hub in Europe. The luxury real estate market in the city has seen significant growth, supported by a stable economy, a resilient labor market, and substantial foreign investments, especially from North and Latin America. “Spain’s economy is expected to grow by 3% in 2025 – four times faster than the rest of the Eurozone, which will boost confidence, encourage investment, and maintain strong demand. This, in turn, will drive price increases, particularly in central areas and well-connected transport hubs, making property purchases both attractive and expensive,” says Hans Wienhoesen, owner and CEO of Christie’s International Real Estate Madrid. “Demand is likely to remain high, but investors and buyers should be cautious of fluctuations and new trends,” he adds. While historic properties in prestigious neighborhoods like Salamanca and Chamberí remain popular, luxury projects are transforming areas such as Madrid Río and northern districts like Chamartín. The city is also seeing an increase in sustainable construction practices, attracting buyers. In the Salamanca neighborhood, luxury property prices range from €8,000 to €22,000 per square meter.
Bulgaria attracts with its natural beauty, rich history, and lower price levels compared to other countries in Central and Eastern Europe. Additional advantages include low tax rates and some of the lowest mortgage interest rates in Europe, with favorable banking policies facilitating access to financing. In the capital, Sofia, the luxury segment recorded a 50% increase in sales of properties priced above €600,000 since 2023, according to Vesela Ilieva, managing partner of Unique Estates – the exclusive representative of Christie’s International Real Estate in Bulgaria. “In the past year, nearly one-third of listed properties sold at the asking price, and about 15% even above it,” Ilieva says, demonstrating the trust and commitment of clients toward luxury properties as a valuable investment. “High-quality investment properties in prime locations, with well-maintained common areas and proven returns, sell within one to two months, often without price negotiations,” she adds. From Q4 2023 to Q1 2024, housing prices in Bulgaria increased by 7.1% – the highest rise in the EU and the country’s largest jump since 2007. Growth is expected to reach 15% in 2025. The market remains active in traditionally sought-after areas – Lozenets, Center, East, and Izgrev. Doktorska Gradina continues to be among the most expensive areas in the capital, along with zones around St. Alexander Nevsky Cathedral and the National Assembly. In the high-end segment, the average apartment price is around €3,500 per square meter, with the most prestigious locations reaching up to twice that.
Located along the shores of the Mediterranean, just north of Greece, Albania has been attracting more tourists, investors, and entrepreneurs in recent years. They are drawn to its pristine beaches, majestic mountains, welcoming culture, and stable economic and political climate. “The real estate market in Albania is experiencing significant growth in both supply and demand, driven by interest from local and foreign buyers from Europe and beyond,” says Chris Maranda, managing partner at The Maranda Real Estate Group, Christie’s International Real Estate partner in the country. “With its beautiful nature and current market conditions, Albania is on track to become the new luxury hub of Southeastern Europe.” The UN World Tourism Organization recently ranked Albania as the fastest-growing tourist destination in Europe. Investors have also noticed this trend, with several new projects currently underway in the country. Additionally, high-end construction is taking place along the southwestern coast, known as the Albanian Riviera. For investors seeking high returns with minimal costs, Albania offers various tax incentives, simplified property acquisition procedures, a low residential property tax (0.05%), and a reasonable capital gains tax. Furthermore, affordable prices compared to neighboring Greece and Montenegro attract experienced investors, especially given the growing tourist flow. According to Maranda, buyers can expect an annual property value increase of 6–7%.
The economic engine and capital of Western Australia, Perth, is entering a significant phase of luxury real estate market expansion. Located on the far western coast of Australia, the country’s fourth-largest city has long remained off the radar of international buyers and investors. In recent years, however, interest has surged sharply, as the state registers the fastest population growth in the country. According to Shelley Scorrer, CEO of Christie’s International Real Estate Western Australia and South Australia, several factors contribute to the growing interest in luxury properties in Perth. “One of the main factors is affordability compared to eastern coast cities like Sydney and Melbourne. Added to this are the mild climate, extensive parks and beaches, the thriving wine region to the south, nature reserves, a record government infrastructure investment of AUD 10.6 billion, low unemployment, and high-quality education and healthcare,” Scorrer explains. “Luxury single-family home prices in and around Perth range from AUD 1.5 million to 30 million.” Moreover, Perth is a dream destination for tourists, offering direct flights to over 50 destinations in 18 countries. The city airport is also the only one in Australia providing nonstop flights to Europe with daily connections to London, Paris, and Rome.
Monmouth County in New Jersey is no longer just “The Shore.” The coastal area is establishing itself as a leading market for luxury real estate. With its dynamic coastal communities, sprawling suburbs, excellent beaches, fine dining, sports and cultural attractions, and easy access to Manhattan in under an hour, the area is attracting attention from top investors and luxury buyers. Overall, the Monmouth County real estate market recorded a 4% increase in sales of homes over $1 million in 2024 compared to 2023. “We are seeing growing interest from high-end buyers across the tri-state region due to a wave of new projects in Long Branch, which is establishing itself as a true luxury hub along the New Jersey coast,” says Sonya Cularo, co-founder and executive vice president of Christie’s International Real Estate Group. Further boosting interest in the area, Netflix plans to build a $900 million film studio.
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