Where to buy abroad: the prime second-home property markets for 2025

Above: 3 bedroom house for sale in Apes Hill, St James

What are the key criteria for purchasers considering investing in an international property or holiday home? In his role as Head of Knight Frank’s International Department, Mark Harvey speaks to buyers every day and their principal demands are remarkably consistent.

“They look for a secure location, one that offers personal safety and economic and political stability, and one that will provide a well-rounded lifestyle with easy access to culture and extensive local facilities to pursue hobbies and sports,” he says. “The local infrastructure, including international transport links, are important as remote and hybrid working means that for many people, the separation between a second home and a primary residence is increasingly blurred. And in a world where global mobility is on the rise, the tax landscape of any location has become an important consideration too.

Locations that fit the bill for the year ahead include cities in Scandinavia and Greece, the rural splendour of Italy, the Alpine resorts of Switzerland and the Caribbean islands of the Bahamas, Barbados and Mustique.

European cities 

“I still favour Scandinavia, a location I picked last year as one to watch and one that continues to provide a backdrop of economic growth, employment stability, a solid social basis and a positive outlook for capital growth,” says Harvey. “Climate change is a further reason why Sweden and Norway, in particular, are attracting attention. For the first time I can recall, several clients last year told me they were skiing in Norway or spending the summer in Sweden.”

The cities of Oslo and Stockholm were both in the top half of Knight Frank’s Prime International Residential Index (PIRI last year), an index tracking the performance of 100 prime locations, and both are on investors’ radar. “The tax landscape in Sweden continues to play a significant role. The country has no wealth or inheritance tax and with the Krona comparatively weak and property prices falling, the value on offer for international purchasers is interesting,” says Harvey, “especially with potential interest rate cuts on the horizon.”

Look also at Athens he advises. The Greek capital is the recipient of a significant influx of money from capital markets as well as interest from USA buyers, property values are low and several high-end hotels and sophisticated boutiques have opened there, encouraged by a friendly framework for foreign investment.

4 bedroom house for sale in Klagerup, Svedala, Sweden

Italy countryside 

The appeal of Italy shows no sign of abating, both thanks to its celebrated lifestyle and an appealing tax regime. Harvey advises looking at destinations in the north of the country, the foothills of the Alps and the Apennines where the topography cools summer temperatures and ensures the countryside stays attractively green. Interest is also keen in locations in and around Lucca, Florence, Milan and Lake Como.

“Italy presents a slightly more detailed route to property ownership than Spain for example but get a good adviser and allow time and you’ll find value and a superb lifestyle,” says Harvey. "Along with the flat tax regime which has brought high-net-worth individuals, Italy also has one of Europe’s lowest property transfer tax rates and no capital gains tax at all after five years of ownership, significant financial attractions that are often overlooked.”

6 bedroom villa for sale in Lucca, Tuscany

Switzerland

Another gold plated location consistently providing a healthy, safe and sought after quality of life, Switzerland attracts wealthy buyers, but it is important to note that there are parts of the country that allow retirees or those with an EU passport to buy. Welcoming places to spend extended periods include the ski resort of Crans-Montana. It offers panoramic Alpine views – a top demand for Alpine home buyers - and year-round cultural life with skiing in winter and golf, hiking and biking in the summer.

Résidence Le Guépard, Crans-Montana, Valais

Caribbean beaches

The strength of the US economy is having clear repercussions in the Caribbean where new flight routes from across the US eastern seaboard are bringing substantial numbers of North American tourists and buyers to islands they previously ignored. That includes Barbados and Mustique, both already well-established favourites with the UK market and both with a limited supply of properties for sale. The wonderfully varied islands of the Bahamas, from buzzy, built-up New Providence to the natural beauty of the Exumas, are a familiar destination with Canadians and Americans – Nassau is little over 60 minutes from Miami – and has direct flights from the UK.

“The Bahamas is a favourite with Europeans and an easy weekend destination for millions of Americans and it seems its popularity will only continue to grow,” says Harvey. “It provides warm weather fun, a tax-friendly jurisdiction and the scale of development happening there along with the wide choice of islands, means it has something for everyone. If the stock market continues to grow and investors become nervous about inflation, it is one of the obvious places that people will consider to park their money.”

For further information please contact our International Residential Property team