CÔTE D’AZUR – CRÈME DE LA CRÈME

The Côte d’Azur features on the list of destinations for the three World Cities, and for each of them, the region comes first among the three second home locations for each World City. The depth of the property market, abundance of wellness activities, and strong connectivity propel the French Riviera to the top of the league table. The region benefits from access to both sea and countryside, ample sport options, including Alpine skiing, and one of the highest quality of life scores for any of the second home locations profiled. These benefits haven’t gone unnoticed; average prices in the region have increased by 15% over the past year, reaching over 9,000€ per square metre.

A highly international destination with a growing proportion of younger buyers, the region has been a top location for second homes for over a century. Buyers in the region are drawn to the top-quality residential properties as well as the amenities on offer, plus excellent infrastructure. Increasing development of towns such as Valbonne and Grasse which are slightly inland but still accessible to the seaside and major resort towns along the Mediterranean will appeal to a larger market who might have been priced out of the ultra-prime locations in the region.

SPAIN – NATIONAL AND INTERNATIONAL APPEAL

Spain is a key market for second homes for buyers from across Europe. Sotogrande, the wider Costa del Sol, and the Balearics are key destinations for buyers from Germany, other northern European nations, and as far afield as Dubai. International buyers are boosting property prices in the regions. Over the past 12 months, prices in the Costa del Sol and the Balearic Islands have increased more than 10%, as buyers bid up prices for the limited supply of residential property. These locations have the seaside, sunshine, and year-round outdoor sports amenities missing from many northern locations within a relatively short journey from most of Europe.

For Spanish locals, the northern coast and countryside of Galicia tops the table. Madrileños in particular look for cooler climates and more greenspace which can be found in abundance in Northern Spain. The lower property prices, lower cost of living, clean air, and ample wellness amenities found across the region – from spas to world-renowned golf courses – along with relatively easy access to Madrid, push Galicia up to the top spot for Madrid residents looking for second homes. Prices in Galicia are some of the lowest in the Spanish markets studied, according to Idealista, averaging just over €1,500 per square metre.

PALM BEACH – MANHATTAN ON SEA

South Florida has seen incredible amounts of in-migration from other areas of the United States, drawn by favourable weather, lower cost of living, low taxes, and leisurely lifestyle. Palm Beach is no exception to this trend. The town has seen large numbers of tech, finance, and legal executives from cities all over the US but in particular New York; choosing to purchase property in the area that is rapidly becoming Manhattanon-Sea. Palm Beach is known for its golf courses as well as its lengthy beaches along the Atlantic coast.

Historically a destination for ‘snowbirds’ fleeing North-eastern winters, Palm Beach is increasingly becoming a year-round destination with wellness amenities such as spas and gyms to draw residents, along with the well-known golfing options. This increasing attractiveness is reflected in the pricing for the market. In June 2022, the median listing home price in Palm Beach, FL was $2.9 million, an increase of 47% year-over-year, according to Realtor.com.

ISLAND TIME – MEDITERRANEAN LEADERSHIP

A key theme of the analysis of the second home destinations was how well the island destinations performed against other non-island locations. The Greek islands, Sardinia, and the Balearics each offer strong residential markets, ample wellness opportunities, and connectivity that belies their island nature as pockets of land cut-off from the mainland. In fact, Mediterranean island locations perform just as well if not better than other coastal Mediterranean locations. 

The island destinations tend to be much more international than their mainland counterparts. Buyers in the Greek islands and Balearics come from across Northern Europe, but predominantly Germany, Scandinavia, and the Netherlands. Sardinia has an even more international appeal with buyers coming from across Europe and beyond.

And this activity has had its effect on pricing, as average asking prices have increased by about 7% year-on-year in the Cycladic islands in the second quarter of 2022, according to Spitogatos. This way of life across the Mediterranean islands, with its emphasis on wellness is a key driver for second home buyers in the region.

ITALY – LA DOLCE VITA

Italian buyers looking for second homes tend to look at destinations within Italy. The country has ample options for different climates, cultures, and lifestyles, but the nation as a whole had a focus on wellness before wellness was cool – an insistence on top-quality food, time with family, exercise, and time away from it all are key elements of the Italian lifestyle. Tuscany, the top-performing Italian second home location, offers all of these elements in abundance. The region also boasts hot springs which are popular with locals and visitors. The springs have been used for their curative properties since the time of the Romans, and today some are used by spa hotels, medical centres while others provide a more natural, wild experience.

Liguria is a key second home location not only for Italians but also for others across Europe, notably Swiss buyers. The towns around Genoa, the Cinque Terre regions, and up to San Remo are all popular with buyers searching for some sunshine and coastal living. Property prices across Italy haven’t grown at the same rate as the Spanish and French markets, though they are growing at a steady clip. Across the three regions examined, residential prices increased by 1.5% over the past year and have the potential to climb further as demand for second homes in key towns rises.

ASIA – LIFE AND WORK BALANCE

For residents of major Asian world cities looking for second home locations within easily accessible reach, the locations which stand out have ample access to nature – either sea, countryside, mountains, or a combination of them all. Growing middle classes across the region are now looking for second home options as a show of their increasing wealth and status and to have a retreat from the frenetic pace of city life. While travel times in this region are longer, buyers in many Asian markets are more willing to travel farther to reach their second homes.

China takes a slightly different approach to wellness, however; the majority of wellness amenities can be found in city centre areas. Cities such as Shanghai are increasing greenspaces and cycleways to boost residents’ health. The Chinese government also actively promotes a more active lifestyle as part of overall health objectives.