Despite stumbling blocks resulting in sluggish growth in 2024, Europe’s ultraprime real estate market is on the recovery, with a healthy uptick predicted for the remainder of 2025 and 2026. Here, we focus on three of the strongest markets where robust growth is generating renewed confidence in residential sales.
MONACO
Monaco continues to attract the uber wealthy with no personal or capital gains taxes, nor any property tax other than on rentals, where you pay 1% of the annual rent. In return, expect to pay sky-high prices, whether renting or buying. Monaco benefits from virtually non-existent crime, a beautiful climate, exclusive shopping, a choice of restaurants, beach clubs, a yacht harbour and a world-famous casino. Residents can access the French Riviera across the border, nearby, or drive in under an hour to Italy. There are also excellent international schools and top-notch fitness and wellness facilities.
MILAN
Milan is experiencing accelerated demand, notably from the US, on account of Italy’s special tax regime. Buyers pay a flat rate of €200K, plus a smaller amount for a spouse, following which there is no further taxation on worldwide income. The city is known for its excellent hotels, restaurants, private clubs, and internationally acclaimed art galleries. It is also home to the famous La Scala opera house and the Pinacoteca Museum, among others.
Proximity to Lake Como, Portofino and St Moritz makes Milan a desirable city for those wishing to travel with ease. There are also numerous flights to London, Paris and further afield. Real estate prices have increased exponentially due to supply and demand. Many apartments and villas require renovation or substantial modernisation, which is an excellent investment if the right location and space planning are considered carefully. We can only predict further growth.
LISBON
Lisbon ticks all the right boxes for wealthy investors seeking great lifestyle quality, international schools, safety, and proximity to both countryside and ocean. There are lots of new development projects under construction, a significant number of North American, French and British expats, and a focus on owning both here and in the exclusive beach and countryside regions of Setubal and the Alentejo. Restored heritage buildings in prime areas are particularly sought-after, though where to live is quite subjective—we have our views! A thriving arts scene, excellent restaurants, tree-lined avenues with luxury boutiques, and proximity to water make Lisbon an appealing city.