The primary motivations for Americans buying overseas appear to be economics, politics, lifestyle, potential investment opportunities and the favorable exchange rate, White says. “Demand from U.S. buyers was robust in 2024, particularly in markets that aligned with their motivations. Portugal continues to be a compelling destination, with U.S. buyers becoming the top foreign nationality in 2024. In Italy, the U.S. buyer share has significantly increased since 2023, fueled by the strong dollar and a new lump-sum tax regime. Our affiliate in Paris, France, Propriétés Parisiennes Sotheby’s International Realty, also noted that 70% of its foreign buyers were from the U.S. in 2024.”
Demand for prime properties in central Paris remains strong, says Delphine Gibert Avitan, director, Propriétés Parisiennes Sotheby’s International Realty. “High-profile sales have continued, particularly in the most sought-after arrondissements, but buyers are showing increased selectivity, favoring properties that offer a unique architectural or historical character. There’s a continued preference for properties with outdoor spaces and terraces, along with high demand for meticulously renovated turnkey residences. There’s also an increasing focus on energy-efficient and historically preserved properties due to evolving regulations and buyer preferences.”
In April 2025, Alexander V. G. Kraft, chairman and CEO, Sotheby’s International Realty France and Monaco, secured the Maybourne Residences in Saint-Germain-des-Prés, one of the most prestigious areas of Paris. The residences are exclusively listed by Propriétés Parisiennes Sotheby’s International Realty and are the first private homes in Paris that will benefit from hotel services. They are also the most expensive, with a €60,000 per square meter (US$5,750 per square foot) listing price. “These developments offer Americans not just properties but lifestyle experiences in prestigious locations,” White says.
Residents of the Maybourne, in Saint-Germain-des-Prés, Paris, have access to the luxury spa at the adjoining hotel.
Sotheby’s International Realty France and Monaco
The Paris residences represent a global trend among luxury property buyers who are looking for hotel-like amenities for their private homes.
Lower interest rates in Europe may encourage some HNWIs to re-enter the market there, Gibert Avitan adds, although cash transactions dominate the ultra-luxury sector. “Geopolitical uncertainty tends to reinforce the appeal of stable luxury markets such as Paris, London and major European capitals.”
Sustained interest in Paris among American buyers, particularly those motivated by lifestyle and long-term investment potential, is matched by the appeal of London. “Buyers in London in 2024 did very well because there was lots of supply and the market was unsettled before our general election,” says Becky Fatemi, executive partner, United Kingdom Sotheby’s International Realty. “There’s more clarity globally now that the U.S. and U.K. elections are behind us, and there are still good opportunities in the U.K. as we’ve experienced a significant exodus of foreign buyers.”
Some wealthy people from Europe, the Middle East and Africa have left the U.K. since reforms in 2024 eliminated long-standing tax benefits for residents whose permanent home is outside the U.K. In addition, in November 2024 the new center-left U.K. government imposed a 2% surcharge on home purchases made by non-residents and an extra 5% on buyers who own more than one residential property.
In 2024, Americans made up 20% of foreign buyers in the U.K, according to Fatemi. The market segment between £2 million and £10 million (US$2.6 million to US$13 million) remains active, with foreign buyers predominantly purchasing properties as a pied-à-terre or investment assets for family members. In addition, interest rates are lower in the U.K. Robust bonuses for people in the financial sector also led to a boost in purchases at the end of 2024 and in early 2025.
“One reason Americans were buying in the U.K. is the strength of the dollar compared to the pound,” Fatemi says. “Even though they might have to pay stamp duty of as much as 19%, the strength of the dollar and lower interest rates offset the expense.” She says prices are the highest they have ever been, so buyers from Dubai and Abu Dhabi are also looking to London for investment opportunities.
“ THERE’S MORE CLARITY GLOBALLY NOW THAT THE U.S. AND U.K. ELECTIONS ARE BEHIND US
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Becky Fatemi, executive partner, United Kingdom Sotheby’s International Realty
Trends in Australia and New Zealand
Australia’s luxury real estate market also showed robust performance in 2024. “Sydney Sotheby’s International Realty achieved a record year in 2024,” White says. “Our brand also has plans for continued expansion in Australia in the coming months.”
Sydney remains one of the world’s most expensive luxury property markets. Other capital markets in Melbourne, Perth and Brisbane represent attractive alternatives for luxury property buyers seeking value and lifestyle appeal.
Melbourne Sotheby’s International Realty set a record for the South Yarra neighborhood with the sale of a contemporary home for just under AU$26 million (US$16.5 million), the highest recorded price since 2018 and a new record per square meter at AU$41,000 (US$26,127). “I believe we’ll continue to see this trend for strong demand for luxury real estate by the ultra-rich and finite supply in highly sought-after suburbs of Melbourne, which offer world-class amenities,” says Antoinette Nido, managing director – Stonington, Melbourne Sotheby’s International Realty.
An architectural icon in Toorak in Melbourne, Australia, with six bedrooms and ornamental gardens.
Peninsula Sotheby’s International Realty
Queenstown, New Zealand, is home to this secluded lakefront residence.
New Zealand Sotheby’s International Realty
In Australia’s major cities, demand is being driven by UHNWIs and an increasing appetite for prestige property investments. Market forecasts from data analytics firms Cotality and Domain suggest a 5.3% annual property value growth rate for 2025 compared to 2024, along with sustained interest in landmark residences and branded developments. While foreign purchases of existing homes are on hold for two years from April 1, 2025 the same restrictions do not apply to new developments, which represent ownership and investment opportunities for overseas purchasers.
“In New Zealand, a significant market development emerged in March 2025 with updates to the Active Investor Plus Visa Scheme,” White says. “This policy change now permits foreigners to own homes based on eligibility related to investment thresholds and physical presence requirements. New Zealand Sotheby’s International Realty was involved in the top three national sales in 2024 and six of the top ten, suggesting strong underlying market momentum.”
Despite ongoing global economic and geopolitical challenges, the luxury real estate sector in the Middle East remains robust, says Zhanna Yerkozhanova, general manager, Qatar Sotheby’s International Realty. “HNWIs are actively purchasing exclusive properties in the top locations. This year, foreign investment is anticipated to rise due to favorable exchange rates and government initiatives attracting affluent buyers.”
Approximately 6,700 millionaires are estimated to have migrated to homes in the UAE in 2024, with Dubai recognized as a luxury property magnet. Similar to other high-end markets, Dubai continues to struggle to keep up with demand. An array of luxury mansions and penthouses that range in price from US$60 million to more than US$120 million are under construction or recently completed in Dubai for buyers from Europe, Asia and the Americas, according to a February 2025 Bloomberg report.
Branded residences in the Gulf Cooperation Council (GCC)—which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates—are anticipated to stay strong as buyers seek not just luxury but integrated experiential lifestyles. “Qatar is uniquely positioned as a leading Middle Eastern economy, benefiting from a strong banking system, no personal income tax and the possibility for investors to obtain permanent residency,” Yerkozhanova says. “Qatar’s strategic vision and infrastructure investments position it for continued interest and potential growth in the luxury sector, along with its position as a gateway between Europe and Asia.”
Oman, known as a tourism destination for its beautiful landscapes, also has a stable economy bolstered by oil reserves and progressive government policies, which has led to its emergence as a hub for international business, capital transfer and immigration. “Our exclusive projects—the Residences at the St. Regis Marsa Arabia Island, the Pearl—Qatar and the Residences at the St. Regis Al Mouj Muscat Resort—consistently attract international buyers,” Yerkozhanova says.
A nine-bedroom mansion located in Emerald Hills with views of the Dubai skyline.
Dubai Sotheby’s International Realty
On-again, off-again tariffs, stock market volatility, stubborn inflation and currency fluctuations are likely to continue to affect global real estate markets in the coming months, but they could still present opportunities for some buyers.
“Despite elevated interest rates and slower overall sales activity, the high-end real estate segment continues to show resilience,” says Odeta Kushi, deputy chief economist, First American Financial Corp., a provider of title, settlement and risk solutions for real estate transactions. “Wealthy homebuyers are often motivated by lifestyle, portfolio strategy or long-term bets on a specific market, not just short-term cost considerations. And, while headwinds such as trade tensions or financial market volatility may shift the pace or location of demand, they rarely erase it.”
The upper end of the housing market has consistently performed well in the past few years, attributed in part to strong stock market performance, says Lawrence Yun, chief economist, National Association of REALTORS® (NAR).
While noting that market dynamics might temporarily slow activity, Yun remains optimistic about luxury real estate’s long-term trajectory. “We’re starting to see a little hesitancy at the upper end, mostly because of the uncertainty about where the stock market will be in a month or next year,” Yun says. “But in the big picture, there’s sizable pent-up demand for trade-up buyers. In addition, even with a stock market correction, there’s plenty of household wealth being transferred to the next generation that will add to the demand for luxury housing.”
This estate in Bradbury, California, was meticulously designed following Feng Shui principles and includes a 100ft pool and garage for 20 cars.
Pacific Sotheby’s International Realty