Beyond London and New York: The Top Cities Millionaires Are Choosing for Second Homes in 2025

For decades, the world’s wealthiest buyers have flocked to established luxury real estate hubs like London, New York, Paris, and Hong Kong for their second homes. But in 2025, the global map of high-end property investment is shifting. The ultrawealthy — defined as individuals with a net worth of at least $30 million — are increasingly looking beyond traditional markets in search of exclusivity, lifestyle appeal, tax advantages, and long-term value.

From emerging cultural capitals to scenic retreats that offer both privacy and investment potential, the newest “it” cities for luxury second homes tell a story about changing global wealth patterns and evolving buyer priorities.

Why the Ultrawealthy Are Diversifying Their Property Portfolios

The motivations behind this trend are multifaceted. For some, it’s about lifestyle — finding a property that offers year-round enjoyment, whether through a vibrant urban scene or proximity to nature. For others, it’s strategic: second homes in emerging luxury markets can offer significant capital appreciation, lower property taxes, and attractive residency programs.

Political stability, climate resilience, and access to international transport hubs are also influencing buying patterns. Many high-net-worth individuals (HNWIs) are thinking about how their assets will hold value in an era of economic uncertainty, shifting tax laws, and climate-related risks.

The 2025 Standout Cities for Second-Home Purchases

While traditional hubs remain strong, the following destinations are seeing exceptional demand in 2025, according to real estate analysts and luxury property brokers.

1. Lisbon, Portugal

Lisbon has become one of Europe’s most desirable cities for second homes thanks to its Mediterranean climate, thriving tech sector, and favorable residency-by-investment programs. Even though Portugal has tightened its Golden Visa rules, prime real estate prices remain competitive compared to Paris or London, making it attractive for wealthy buyers seeking both lifestyle and long-term investment.

2. Dubai, United Arab Emirates

Dubai continues its meteoric rise as a global wealth hub, with no income tax, luxurious waterfront developments, and a reputation for safety and political stability. Ultrawealthy buyers are snapping up penthouses in the Palm Jumeirah and ultra-modern villas in Dubai Hills. The city’s year-round sunshine and direct flight connections to major financial centers make it a prime choice.

3. Auckland, New Zealand

Post-pandemic, New Zealand’s appeal as a safe, environmentally pristine destination has only grown. Auckland offers a mix of cosmopolitan living, access to stunning coastlines, and exclusive private estates. For the ultrawealthy, it represents both a secure asset and a retreat from geopolitical instability.

4. Austin, Texas, USA

While New York and Los Angeles remain popular, Austin has emerged as the U.S.’s newest luxury hotspot. A booming tech industry, cultural vibrancy, and no state income tax are attracting wealthy buyers. Lakefront properties and hill country estates have seen prices soar, fueled by demand from both domestic and international investors.

5. Monaco

The world’s second-smallest country remains one of the most exclusive addresses on the planet. With limited land, property in Monaco retains its value, and its status as a tax haven continues to draw the ultrawealthy. In 2025, there’s growing demand for renovated Belle Époque residences and ultra-modern harbor-view apartments.

6. Cape Town, South Africa

Cape Town’s luxury market is gaining global attention thanks to its breathtaking scenery, vibrant art scene, and favorable exchange rates for foreign buyers. Ultrawealthy investors are targeting waterfront villas in Clifton and Bantry Bay, as well as wine estates in Stellenbosch.

7. Singapore

Known for its political stability, low crime rate, and role as a financial hub, Singapore has long attracted high-net-worth individuals. In 2025, demand remains strong, especially for luxury condos with skyline or waterfront views. Limited land supply ensures continued price growth.

8. Málaga, Spain

Often overshadowed by Barcelona and Madrid, Málaga is rising as a second-home favorite for wealthy buyers. The city offers sunny weather, rich cultural heritage, and easy access to the Costa del Sol’s exclusive resorts. With improved infrastructure and international flight connectivity, Málaga is now firmly on the luxury property map.

9. Tokyo, Japan

Tokyo’s mix of world-class dining, culture, and stability continues to appeal to the ultrawealthy. With the yen remaining relatively weak in early 2025, foreign buyers are finding value in luxury apartments in districts like Minato and Shibuya.

10. Vancouver, Canada

Vancouver remains one of the most livable cities in the world, offering stunning natural surroundings alongside an active cultural and business scene. Despite foreign buyer taxes, the ultrawealthy continue to invest here, often citing Canada’s stability and quality of life.

Common Features These Cities Share

While each city offers something unique, the top destinations for ultrawealthy second-home buyers share several characteristics:

  • Strong Lifestyle Appeal: A blend of natural beauty, cultural vibrancy, and year-round amenities.
  • Global Connectivity: Proximity to major airports with international routes.
  • Political & Economic Stability: Lower perceived risk for long-term investment.
  • Prestige Factor: Being associated with an exclusive or emerging luxury hub enhances status.
  • Resilience to Market Shifts: Limited supply and high demand keep values stable even in downturns.

How the Market Is Evolving

The luxury property market is adapting to the preferences of a new generation of ultrawealthy buyers. Millennials and Gen Z inheritors, as well as self-made tech entrepreneurs, are bringing different priorities to the table. Sustainability, smart-home technology, and privacy rank high on their wish lists, influencing both property design and location choice.

Moreover, the rise of remote work has made it easier for the ultrawealthy to spend more time in their second homes, blurring the lines between vacation properties and primary residences. This is leading to increased demand for homes that can accommodate extended stays, with features like high-speed internet, home offices, and wellness facilities.

The Outlook for 2025 and Beyond

Experts believe that second-home investment among the ultrawealthy will continue to expand geographically. While established markets will always hold their allure, emerging luxury cities will gain market share as buyers diversify for lifestyle and investment reasons.

For developers and real estate agents, this means opportunity — but also the need to understand the distinct motivations and preferences of this highly selective clientele. In a world where luxury is no longer defined solely by price, but by exclusivity and experience, the most successful markets will be those that deliver both.

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