As investors seek value, growth and diversification, the international luxury residential market is expected to migrate beyond the traditional powerhouses of New York, London and Miami by 2026. LUXUO investigates new economic corridors, regulatory reforms and growing wealthy populations, which are attracting money to sectors that were deemed peripheral. The eight countries listed below combine strong demographic trends, regulatory openness and attractive price dynamics to justify thoughtful consideration for cross-border property investors.
Portugal – Western Europe’s High-Growth Luxury Hub
In 2025, Portugal’s luxury home market outperformed those of Western European peers. According to Knight Frank’s Prime Global Cities Index, Lisbon placed among the top ten cities in the world for luxury price increase, with prices rising by approximately 5.3 percent year-on-year, exceeding Paris, London and New York. Savills forecasts that prime prices in Lisbon could increase 4 to 6 percent in 2025, maintaining momentum from the 6 percent growth seen the previous year.
In early 2025, national property prices increased by 15.2 percent year-on-year, the most in the EU and significantly higher than the Eurozone average of around 5 percent. In the Algarve’s premium market, transaction values topped EUR 75 million, with typical villa prices approaching EUR 5 million and ultra-prime estates much higher.
Investor composition is changing. Metrics from Portugal Sotheby’s International show 31 percent year-on-year revenue growth and a 34 percent increase in transaction volume, driven by increased demand from North America, Brazil and the United Kingdom, with average transaction values climbing significantly.
Domestic purchasers remain active, accounting for more than half of deals in 2025, while overseas capital increasingly focuses on branded houses and high-end seaside villas.
Lisbon and the Algarve are luxury hotspots, with average central prime prices exceeding EUR 6,100 per m² and limited availability, leading to increased demand. Portugal’s market combination of strong fundamentals, EU connectivity and lifestyle appeal continues to draw global mobile capital outside of conventional hubs.
Bulgaria – Eastern Europe’s Value-Driven Luxury Growth
Bulgaria’s luxury residential market in Sofia and select resort towns has emerged as a popular value option in the EU. According to a 2025 Christie’s International Real Estate study, sales of residences valued above EUR 600,000 increased by around 50 percent year-on-year, with 15 percent selling above the asking price, demonstrating significant buyer commitment at the upper end.
Bulgaria’s aggregate home prices increased by approximately 7.1 percent between late 2023 and 2024, making it the greatest gain in the EU during that period. Growth is expected to continue at a rate of around 15 percent in 2025. In Sofia’s premium class, typical costs are EUR 3,500 per m², with prominent core neighbourhoods surpassing this level.
Independent valuation data for late 2025 shows Sofia’s residential market reaching approximately EUR 2,310 per m², a 25.5 percent yearly rise, driven by record pricing in top areas and limited new supply. Premium city and beach properties have appreciated significantly over the last five years, with coastal resort values almost doubling and premium urban apartments increasing by 60 to 70 percent. Bulgaria’s high-net-worth demand is supported by cheap entry prices in comparison to Western Europe, friendlier tax regimes, lower borrowing costs and projected Eurozone entrance – a potential trigger for further value compression with Western markets.
Luxury clusters remain concentrated in Sofia’s Lozenets, Iztok and Izgrev districts, although seaside locations like Varna and Burgas provide price arbitrage and rental upside for investors seeking yield and diversification.
Vietnam – Southeast Asia’s Emerging Luxury Frontier
Vietnam’s luxury residential market continues to draw domestic and international investments as economic growth and urbanisation drive up demand in the country’s major cities. Prime apartment rates in Ho Chi Minh City and Hanoi now
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