Luxury real estate in Europe remains a mirror of global wealth flows. In 2025, international demand is shifting, with new capital entering traditional hubs and resort destinations. Americans, backed by a strong dollar, are reshaping London and Paris. Latin American wealth is increasingly anchored in Madrid, while Brazilians and Americans are prominent in Lisbon. Northern Europeans continue to drive demand across Mediterranean resorts, from Marbella to the French Riviera. After a period of correction, prime prices are stabilising, with some cities already returning to growth as competition for limited stock intensifies.
London: American buyers set records
London remains the most international of Europe’s luxury markets. Prime central London values slipped by around 2–3% year on year in early 2025, according to Savills, with values still more than 20% below their 2014 peak. For American buyers, currency strength has created a historic opportunity: they accounted for roughly 25% of foreign prime transactions in 2024, the highest on record, and remain the leading group in 2025. Chinese buyers are also re-emerging in new developments, while Italians still prefer Mayfair and Belgravia. Despite higher property taxes, London’s world-class schools, finance, and culture secure its appeal.
Paris: stability returns to the Golden Triangle
After two volatile years, Paris prime values have stabilised. In the Golden Triangle, exclusive apartments typically range between €25,000 and €30,000 per square metre, with trophy assets trading higher. International demand underpins prices, with Americans returning for €4–6 million apartments. Italians and Scandinavians are also present, drawn by Paris’s prestige and scarcity of Haussmann stock. Limited supply continues to support values even as the wider economy slows.
Madrid: Latin American capital consolidates
Madrid has become Europe’s key hub for Latin American wealth. Buyers from Mexico and Colombia, alongside Americans, focus on Salamanca, Jerónimos, and Chamberí. In 2024, international purchases in the Madrid region rose 15% to 10,587 transactions, according to official data, strengthening forecasts for solid prime growth in 2025. For many Latin American families, Madrid serves as both a safe haven and a corporate bridge to Europe.
Barcelona: lifestyle demand under restrictions
Barcelona’s prime demand is lifestyle-driven, with most foreign buyers coming from France, the UK, and Belgium. Average city prices are about €4,900 per square metre, while prime addresses such as Eixample and Pedralbes average €7,200 per square metre. Even with the city’s decision to phase out tourist apartments by 2028, upheld by Spain’s Constitutional Court in 2025, international demand for quality homes remains resilient.
Lisbon: Brazilians and Americans lead activity
Lisbon continues to attract strong international interest, with Brazilians and Americans among the most active groups, especially in the Lisbon–Cascais corridor. They purchase restored palaces in Chiado and penthouses on Avenida da Liberdade, reinforcing Lisbon’s role as both cultural extension of Brazil and a transatlantic hub. Savills reports luxury prices rose by 2.4% in the first half of 2025, with further growth forecast in 2026. French buyers are also present, while Golden Visa changes have had little effect on top-end demand.
Milan: dynamic finance and fashion hub
Milan ranks among Europe’s most dynamic prime markets. In Quadrilatero della Moda, Brera, and Porta Nuova, prime values exceed €15,000 per square metre, with limited supply fuelling competition. British, Swedish, Dutch, American, Chinese, and Middle Eastern buyers are increasingly visible. Forecasts indicate positive prime price growth in 2025, driven by Milan’s combination of finance, fashion, and culture.
French Riviera: trophy assets and global glamour
The Riviera remains Europe’s most prestigious coastal market. Cannes, Saint-Tropez, and Cap Ferrat continue to attract British, Scandinavian, and American buyers. In Cannes, apartments average about €6,000 per square metre, while villas in Saint-Tropez or Cap Ferrat often command €10,000–22,000 per square metre. Trophy properties regularly sell off-market for €10–20 million or more, sustaining the Riviera’s reputation for glamour and discretion.
Marbella: branded residences and northern demand
Marbella has cemented its position as a leading resort hub. British, Swedish, and Dutch buyers dominate the prime segment, particularly in branded residences and golf-side villas on the Golden Mile and La Zagaleta. Typical averages remain below €10,000 per square metre, but ultra-prime developments in La Zagaleta can achieve €15,000–16,000 per square metre, underscoring strong demand from buyers seeking both lifestyle and rental yield.
Balearic Islands: exclusivity in Ibiza and Mallorca
Ibiza and Mallorca remain highly exclusive, with British, Belgian, and Swiss buyers most active. Prime seafront villas and countryside fincas achieve €10,000–15,000 per square metre, with unique assets trading significantly higher. Strict building regulations keep supply tight, underpinning long-term values.
Alpine and lakeside destinations
Lake Geneva continues to attract French, British, and Middle Eastern investors, with prime apartments above €15,000 per square metre. Lake Como draws UK, Swiss, and US buyers, with prime villas in Bellagio and Cernobbio exceeding €10,000 per square metre. In Zurich, average values range from CHF 14,000 to 21,000 per square metre, with prime units above that. Vienna offers more affordable luxury compared to Paris or London, attracting German, Hungarian, and American buyers. Monaco stands apart as Europe’s ultimate prime market, with average resale prices around €52,000 per square metre, the highest globally.
Key takeaway
Europe’s luxury property market in 2025 is a mosaic of global capital. Americans are reshaping London and Paris, Latin Americans are consolidating in Madrid, Brazilians and Americans are highly visible in Lisbon, and northern Europeans remain strong in resort hubs. Prices are stable or rising in most cities, with Milan, Paris, Barcelona, and Zurich forecast to record further gains in 2026. For sellers, aligning with nationality-driven demand is crucial. For buyers, benchmarking per-square-metre values across cities is essential in an increasingly competitive environment.
