Unlocking international opportunities for buyers and investors
With the world’s wealthy migrating to new countries in record numbers, the global property market for high-end homes is witnessing a dynamic shift, as savvy investors look beyond their traditional borders to secure prime real estate.
In the U.S., foreign interest in residential properties sat at a 15-year low, according to a July 2024 report from the National Association of Realtors (NAR) on international transactions in U.S. residential real estate, driven in part by a strong U.S. dollar and rising home prices. NAR also estimated that 50% of U.S. home sales to foreign buyers were in cash, making the strong dollar a deterrent to international home sales. However, this trend may change in the coming months, according to NAR chief economist Lawrence Yun.
In 2025, international engagement in the U.S. could seem uncertain at first, Yun says, due to the high trade tariffs the president-elect has suggested implementing against countries including. Canada, Mexico and China, which led the list of countries with the most U.S. home purchases, according to NAR. “Yet the [incoming] administration is likely to welcome foreign investment and purchases in the U.S., since the concern is about Americans buying too many foreign products [over those made in the U.S.],” Yun says, adding that, as a real estate developer with a number of properties in the U.S., the president-elect would no doubt welcome foreign buyers. “In addition, the Federal Reserve and many other central banks are in an interest-rate-cutting mode and that often lifts real estate sales, including international sales,” Yun says. “I expect some gains in foreign buyers in 2025.”
The biggest factors affecting foreign buyer activity in the U.S. are lower interest rates and continuing job gains, Yun adds, which point to a healthy
American economy. “It is also interesting to see the value of gold and Bitcoin rise so much in the past year. This is likely due to high national debt in the U.S. and generally in many other countries,” he says. “In times of financial overstretch, there is a desire for more limited supply assets like gold and Bitcoin. Certainly, real estate could be considered to be in this category. So there may be increased interest in U.S. real estate as a way to diversify asset holding by the wealthy, domestically and globally.”
The most popular destination for foreign buyers in the U.S. was Florida, which has held the top spot for 16 consecutive years, according to the NAR report, and Yun expects that state to continue to attract the most foreign buyers in 2025. “It is still more affordable in relation to [other markets],” he says.
“Real estate continues to be a key vehicle for foreign buyers seeking not only financial growth but also security and global mobility,” says Tammy Fahmi, senior vice president, global servicing and strategy, Sotheby’s International Realty. “In the past year, our companies have seen international buyers from Canada, U.K., UAE, Mexico, France, Hong Kong, and Portugal investing in U.S. properties.” For investors, this moment presents the potential for significant returns, especially in markets like luxury real estate, where all-cash transactions remain common. By acting strategically, international buyers can take advantage of favorable currency dynamics and property price corrections, potentially positioning themselves for future gains in a rebounding market.
Beyond the U.S., countries around the world leverage residency-by-investment programs—commonly known as “golden visas”—to entice high-net-worth individuals (HNWIs) seeking new homes, financial stability or even second citizenships. These programs, which vary widely in investment requirements and benefits, have proven especially appealing in places like Greece, Portugal and Singapore, where the promise of residency or citizenship in exchange for a financial contribution is reshaping global migration patterns.
Occupying 26 forested hectares, this spectacular estate in Valle de Bravo, Mexico, features rivers, lakes and waterfalls.
Immigrating to a new country can be difficult even under the best circumstances, making residency and citizenship permits vitally important. To illustrate, fewer than 1% of those who want to permanently move to the U.S. can do so legally, according to the Cato Institute. Golden visas offer an alternative to standard immigration routes and can create a fast track to foreign residency. Such golden visas are of particular appeal to foreign homebuyers looking to purchase luxury properties as first or second homes or as investments, and they bring in billions of dollars of economic revenue to the countries that offer them. Greece, for example, has seen nearly US$6 billion enter the real estate market from foreign buyers in the 10 years since it opened its golden visa program, according to data released by Greece’s Ministry of Migration and Asylum in February 2024.
Although not a legal term, a golden visa allows a HNWI to immigrate with residency rights in exchange for a “defined economic contribution” or investment, says Henley & Partners, a specialist residence and citizenship company. Depending on the country, golden visa programs grant residency, residency leading to fast-track citizenship or citizenship.
Golden visas were first issued by the Caribbean islands of Saint Kitts and Nevis in 1984, according to Investment Migration Insider. They have since been introduced around the world in many different versions. Requirements vary by country, but standard investment options include cash and government bonds, usually bought in the nation’s currency, and real estate.
Having a large HNWI population can materially benefit a host country. Their presence, says Henley & Partners, increases foreign-exchange revenue, supports local stock markets with equity investments and contributes to the direct and indirect creation of jobs. According to the Henley & Partners June 2024 report, about 20% of relocating HNWIs are entrepreneurs and company founders. That percentage increases to 60% for those whose wealth exceeds US$100 million.
While a few countries, including Ireland and the U.K., have altered or scrapped their golden visa programs entirely, according to Henley & Partners there are still more than 100 countries offering them, including 60% of those in the European Union. A quick look at residency-by-investment options in various trending markets highlights the many routes HNWIs can pursue to obtain residency or citizenship around the world.
Hong Kong
The New Capital Investment Entrant Scheme is Hong Kong’s version of a golden visa. To apply, individuals agree to invest a minimum of HK$30 million (US$3.86 million) in “permissible assets,” such as shares and bonds denominated in Hong Kong dollars. In September 2024, the South China Morning Post found that 47 applicants had entered the program, a number that is expected to grow throughout 2025.
According to Global Property Guide, a source of trends and information on buying overseas properties, foreigners can buy or rent property in Hong Kong without restriction, although some countries are excluded. “The Hong Kong government is implementing measures to revive the economy by encouraging global talent, immigrants and businesses to invest here and strengthen the property sector,” says Kenichi Tamamura, general manager overseas business development, List Sotheby’s International Realty, Hong Kong.
Jumby Bay Island, a privately owned 300-acre Caribbean archipelago located off the coast of Antigua, offers privacy, serenity and sweeping ocean views.
The special administrative region of China is celebrated as a business-friendly city with world-class infrastructure. However, its luxury property market has struggled in recent years due to supply shortages, high interest rates and the imposition of three additional stamp duties that targeted local speculators, second-home buyers and foreign investors in an attempt to cool down an overheating market. This changed in February 2024 when the government abolished all three additional stamp duties.
Tamamura says, “After the pandemic, many multinational company executives left. However, since the middle of 2024, we have seen more relocating to Hong Kong, which provides great support to the luxury property rental market. We are seeing HNWIs grow their property portfolios here due to the recent removal of additional stamp duty for foreign buyers, easing mortgage restrictions, falling interest rates and the New Capital Investment Entrant Scheme.”
Mexico
While there is no official golden visa program in Mexico, there is also no barrier for non-residents who want to buy property: for 7,500 pesos (US$382) Mexico’s Ministry of Foreign Affairs will issue the necessary permit. “The only document required to apply is an active passport with a tourist visa, which is provided upon entering Mexico,” says Sheryl Clark, owner and broker, San Miguel Sotheby’s International Realty and Querétaro Sotheby’s International Realty.
Applications for permanent residency grew 44% from 2022 to 2024, according to Mexico’s Migration Policy Unit. Americans are the primary buyers of Mexican properties and accounted for 60% of all foreigners entering Mexico in the first quarter of 2024.
“MANY MORE YOUNG FAMILIES HAVE RELOCATED [TO SAN MIGUEL DE ALLENDE, MEXICO] SINCE COVID.” -Sheryl Clark, Owner and Broker, San Miguel Sotheby’s International Realty and Querétaro Sotheby’s International Realty
“San Miguel de Allende, which is about 170 miles northeast of Mexico City, is a large second-home market for U.S. citizens,” Clark says. “Our market used to be primarily retirees, but since COVID, many more young families have relocated there and San Miguel de Allende provides an easy entry point to living in Mexico.”
Outside of Querétaro and San Miguel de Allende, Mexico City continues to garner attention for its unique neighborhoods and comparatively low real estate prices— though it has the highest average home prices in Mexico.
“As we continue to see the greatest transfer of wealth to younger generations, we think we will continue to see an increasing number of young families moving to these areas,” Clark says.
New Zealand
Announced in September 2022, the
Active Investor Plus Visa has replaced
New Zealand’s former golden visas and allows applicants to live or work in New Zealand indefinitely. To qualify, applicants must agree to invest between NZ$5 million (US$3.2 million) and NZ$15 million (US$9.5 million) over the course of four years, while committing to live for at least 117 days in New Zealand over this period. Investments can include direct investment into approved businesses, managed funds, listed equities or philanthropy.
“Outside of this program, foreigners can’t buy property in New Zealand unless they are Australian or Singaporean,” says Mark Harris, co-founder and managing director, New Zealand Sotheby’s International Realty. Negotiations for reopening the property market to overseas buyers with lower investment thresholds are ongoing in the government.
High interest rates, which rose from 0.25% in October 2021 to 5.5% in May 2023, cooled an overheating property market. Despite a sluggish 2024, a Reuters poll of property strategists conducted in November 2024 predicts a 5.1% rise in housing prices for 2025 as projected interest rate cuts by the Reserve Bank of New Zealand take effect.
“New Zealand remains popular with Australians and expats returning home from Europe and overseas,” Harris says. “It is still a relatively affordable place to buy and own a property, and geopolitical turmoil in the Middle East and Europe is driving more inquiries about such ‘safe haven’ locations.”
This coastal residence in Auckland, New Zealand, has been designed to make the most of its Takapuna beachfront position.
Singapore
Singapore offers one of the most sought after golden visa policies in Asia: the Global Investor Programme. Qualifying investments begin at SG$10 million (US$7.8 million), and successful applicants generally receive a permanent residence permit within nine to 12 months of applying.
Growth in the number of family offices—companies that manage the assets of a single wealthy family—registered in the country has been a notable driver of the Singapore economy. Chee Hong Tat, the country’s minister for transport and second minister for finance, recently reported that the number of family offices grew from 400 in 2020 to 1,650 in August 2024.
“Growth has been robust, and we expect the number of new family offices for 2024 to surpass the 300 that were added in 2023,” says Veniz Kwong, head of sales, List Sotheby’s International Realty, Singapore. “Wealth flowing into Hong Kong and Singapore is primarily from within Asia, led by HNWIs from mainland China, India and Indonesia.”
Nestled in one of Bangkok’s most desirable locations, The 528 Estate is a mansion curated by Baccarat and designed to epitomize opulence.
When it comes to buying luxury property, obtaining residency is highly advantageous—non-residents pay a buyer’s stamp duty of 60% on property purchases. “We have observed an increasing trend of foreigners waiting to obtain permanent residency in Singapore before they invest in property,” Kwong says, noting that purchases by citizens from the U.S., Switzerland, Iceland, Norway and Liechtenstein are exempt from 60% Additional Buyer’s Stamp Duty on their first residential property purchase. “Further lowering of interest rates might allow HNWIs to review their investment portfolios and shift more funds toward property. Against this backdrop we expect the demand for luxury property to see some improvement.”
Thailand
One of the most sought-after destinations in Southeast Asia, Thailand offers affordable luxury housing and a high standard of living. The Thailand Privilege Residence Program, whose successful applicants receive the Thailand Elite Visa, is a long-term tourist visa allowing residency for 5, 10, 15 or 20 years and includes favorable tax breaks. According to the Thai Embassy, the application fee, paid directly to the government, is dependent on which membership program is chosen.
“We don’t have a golden visa, but there is the option for foreigners to apply,” says Phakrjira Jansakran, director of sales, List Sotheby’s International Realty, Thailand. “The Thailand Elite Visa is a long-term visa program designed to attract foreign nationals who wish to stay in Thailand for extended periods. Managed by the Thailand Privilege Card Company, a subsidiary of the Tourism Authority of Thailand (TAT), the Elite Visa offers multiple visa packages, each with different benefits, costs and durations.” Options include:
Gold card
A five-year multiple-entry visa for 900,000 baht (US$26,800).
Platinum card
A five-year multiple-entry visa that can be renewed for an additional five years. The cost for the main applicant is 1.5 million baht (US$44,680) plus 1 million baht (US$29,782) for each additional applicant.
Diamond card
A five-year multiple-entry visa that can be renewed for two additional terms of five years each. The cost for the main applicant is 2.5 million baht (US$74,452) and 1.5 million baht (US$44,680) for each additional applicant.
Reserve card
A five-year multiple-entry visa that can be renewed for three additional terms of five years each. It costs 5 million baht (US$148,900) and is only available via invitation.
“Foreigners can purchase and own condominiums in Thailand—with 49% of a building’s total area allowed to be bought by foreigners and 51% set aside for Thai buyers. Foreigners can purchase a house and/or land by setting up a Thai company—whose shareholders must be 49% foreigner and 51% Thai—with a lawyer’s support. Most foreigners who purchase villas in southern Thailand have to follow this process,” Jansakran says. “Foreign buyers in Bangkok largely prefer to buy condominiums rather than a house due to the ownership complications, but some foreigners who prefer houses will consult with a lawyer.” Research by CBRE Global Commercial Real Estate Services on condominium sales for the first half of 2024 revealed that foreign buyers composed 33% of the market, a steady jump from 25% in 2022-2023.
“In the super-luxury real estate sector, where units are 350,000 baht (US$10,300) per square meter and above, and within branded residential properties, sales were strong in the first half of 2024, achieving rates of 86% and 90%, respectively,” Jansakran says. “This success is partly due to the scarcity of supply, which likely heightened buyer interest and contributed to the brisk pace of sales. Key factors influencing a developer’s decision to launch new projects include global and Thai economic conditions, which are likely to impact high-end and luxury markets, along with mid-range and lower segments, more than the super-luxury market.”
Most HNWIs reside in Bangkok and Phuket, home to “Millionaire’s Mile,” which includes Nai Thon Beach, Layan Beach, Bang Tao Beach and Kamala Beach and is famed for its high-end luxury properties.
United Kingdom
The U.K. has made many changes to its residency rules over the past few years, notably to its golden visa program. The Tier 1 (Investor) visa allowed non-EU citizens to live in the U.K. in exchange for a large financial investment. It was closed in 2022 to curb the inflow of potentially illicit funds, namely from countries or individuals subject to international sanctions.
Otherwise, the U.K. offers a significant number of visas—with different eligibility qualifications and valid for varied lengths of time—for those who want to live, work or study in the U.K. They include the Innovator Founder visa for entrepreneurs and the Global Talent visa for those who excel in science or the arts. However, there are no residency qualifications for foreign nationals who want to buy U.K. properties.
“UPCOMING CHANGES INCLUDE THE REMOVAL OF PREFERENTIAL TAX TREATMENT FOR U.K. CITIZENS WHO ARE NOT RESIDENTS IN THE U.K. FOR TAX PURPOSES, STARTING IN APRIL 2025.“ -Claire Reynolds, Managing Partner, United Kingdom Sotheby’s International Realty
The U.K. luxury home market is notable for its long-term stability and continues to offer good returns, though there are tax changes in the pipeline that might affect some investors. “We have had a change in government direction following the general election in July 2024,” says Claire Reynolds, managing partner, United Kingdom Sotheby’s International Realty. “Upcoming changes include the removal of preferential tax treatment for U.K. citizens who are not residents in the U.K. for tax purposes, starting in April 2025.”
Changes to the non-domicile policy affect any U.K. resident whose permanent home, for tax purposes, is outside the U.K., according to an October 2024 report by the BBC. Currently a “non-dom” only pays tax on what they earn in the U.K., allowing HNWIs significant savings if their main home is in a lower-tax country.
United States
The U.S. government’s EB-5 Immigrant Investor Program was started in 1990 to stimulate the economy by attracting foreign investment in commercial enterprises. Each applicant must present a plan to create or preserve at least 10 American jobs. In turn, they are granted the right to live and work freely in the U.S. and apply for permanent residency.
This luxurious estate in Dallas, Texas, has been meticulously designed to provide the perfect private retreat.
The EB-5 visa also requires a minimum investment of US$1 million. Investments can be made in cash, stock, infrastructure or equipment or to an established business that is struggling financially.
Interest rates have kept many waiting to purchase property; following 2022 interest rate hikes aimed at tamping inflation, investors finally saw relief in September 2024, when the U.S. central bank cut the federal funds rate to a range of 4.75%-5%.
While interest rates remain vital to luxury property buyers, the health of the stock and equity markets plays an even bigger role in most purchasing decisions. A growing trend for all-cash transactions has been noted in luxury property markets worldwide.
As real estate markets continue to evolve, investors can leverage shifting global, political and economic conditions with residency-by-investment programs to secure high-value assets abroad.
Given these options, investors are well-positioned to capitalize on the rising demand for luxury properties in both established and emerging markets, making 2025 a promising year for the luxury real estate market. ■
