Introduction
The global property market in 2025 is defined by transition. As interest rates stabilise and inflation eases, buyers are returning — but with new priorities.
Across continents, lifestyle has emerged as the dominant motivation for international purchases, with holiday homes and retirement planning close behind. From the Caribbean to Europe, Africa to Oceania, demand is being shaped by personal values as much as financial strategy. Yet alongside opportunity, buyers face growing challenges: visa restrictions, financing hurdles, and shifting tax regimes are increasingly influencing where and how people invest.
The end of Golden Visa programmes in several countries marks a turning point, prompting a more cautious, informed approach to cross-border buying. This report draws on regional insights and buyer data from the Hamptons International Affiliates network to explore key trends, motivations, and barriers shaping international migration and property investment.
The GB Housing Market Today
“We witnessed a more cautious start to the year, now however, the market is showing signs of renewed stability.”
The British housing market in August 2025 is not booming, nor faltering — it is recalibrating. After two years of a lacklustre economy, shifting interest rates, and policy reform, the market is settling into a more measured rhythm.
Interest rate cuts from the Bank of England have begun to ripple through the system, with the base rate falling to 4% in August. Mortgage rates below that level have reappeared for those with larger deposits, providing a boost to affordability and confidence.
This has boosted price growth. The average home in London grew in value by 2.3% in the first half of 2025 compared to the same period last year. Across Great Britain, where affordability is less stretched, the increase was 4.5% year-on-year.
Even so, the market remains tentative. Homes are taking longer to sell — the average time rose from 48 days in early 2024 to 55 days in 2025. In London, the change was more pronounced, increasing from 38 to 72 days.
The £1m+ market remains the most sensitive to pricing pressures. Nearly half (49%) of sales over £1m were sold for more than 5% below asking price — the highest proportion since 2020.
Buyer interest has strengthened throughout the year. In July 2025, there were 17% more active buyers across Great Britain than the same month last year. London saw an even sharper rise at +30%, though supply tightened — listings fell by 14% compared to July 2024.
In contrast, the rest of the country saw a modest 2% increase in listings.
Rental Market
After five years of relentless growth, rents on newly let properties in Great Britain fell 0.2% year-on-year in July — the first annual decline since August 2020. Despite this dip, the average rent remains £1,373 pcm, up 34% over five years.
One in five newly incorporated buy-to-let companies in 2025 has partial non-UK ownership — up from 13% in 2016.
Forecast
Outlook remains steady but subdued. Prices are forecast to rise by 3.5% across Great Britain next year, aligning with income growth thereafter at around 2.5% annually.
Outlook remains steady but subdued. Prices are forecast to rise by 3.5% across Great Britain next year, aligning with income growth thereafter at around 2.5% annually.
| Region | 2024 | 2025(f) | 2026(f) | 2027(f) |
|---|---|---|---|---|
| Great Britain | 3.7% | 3.0% | 3.5% | 2.5% |
| London | 0.0% | 4.0% | 4.5% | 3.5% |
The International Housing Market
“In Europe, the recovery is uneven but evident.”
Across much of the world, property markets in 2025 are being shaped by stabilising interest rates, supply constraints, and evolving buyer preferences.
Europe
France: High-end sales have held up, with demand for Parisian apartments, ski resort homes, and heritage properties such as châteaux. Buyers increasingly seek turnkey apartments with terraces.
Italy: Demand focused on off-plan and ready-to-move-in homes; rising construction costs deter renovation projects.
Portugal: Middle-market properties (€400k–€800k) are performing strongly but supply remains tight.
Spain: Luxury market strong around £3m and off-plan developments; price sensitivity rising.
Switzerland: Quiet shift toward new-builds prioritising energy efficiency and modern amenities.
Caribbean
Inventory shortages constrain sales. Barbados has seen reduced demand in the US$1.5m–US$5m range but stronger condo sales — a shift away from standalone homes.
South Africa
Despite economic uncertainty, the market remains resilient. Stock is limited, especially in upmarket areas. The trend toward lifestyle estates and mid-market homes continues, reflecting internal migration for safety and quality of life.
North America
Luxury homes remain in demand, supported by domestic migration and intergenerational wealth transfers. Mortgage rates have eased but inflation concerns persist.
Middle East
Dubai remains a top destination for high-net-worth individuals, with 22% higher sales volumes than H1 2024. Prices rose 12% year-on-year, supported by steady demand. Oman also shows strong growth — house prices forecast to rise 9% annually to reach US$6.6bn by 2029.
Global Forecast Summary
| Continent | 2025 Forecast | 2026 Forecast |
|---|---|---|
| North America | ↑ >5% | ↑ >5% |
| Europe | → | ↑ >5% |
| Africa | ↑ >5% | ↑ >5% |
| Asia | ↑ >5% | → |
| Oceania | → | ↑ >5% |
| South America | ↑ >5% | ↑ >5% |
International Migration Patterns
“Buyers are increasingly choosing homes abroad for more personal reasons.”
2025 continues the trend of lifestyle-led migration, with buyers prioritising quality of life over purely financial motives.
Key Trends by Region
Caribbean: North American buyers now dominate demand in Barbados and beyond, often purchasing for lifestyle and security. Visa and residency restrictions remain key barriers.
France: Increasing US buyer interest due to heritage appeal, climate, and lower living costs, though taxation remains complex.
Italy: Attracting buyers from northern Europe seeking tranquillity; bureaucracy and financing remain hurdles.
Portugal: Popular among UK, US, and South African buyers. The end of the Golden Visa has shifted expectations but demand remains high.
South Africa: Attracts foreign buyers with lifestyle value and affordability; major interest from Germany.
Spain: Rising competitiveness, especially in Ibiza; post-Brexit visa rules are a growing obstacle for UK buyers.
Switzerland: Favoured for tax benefits and family stability but limited by strict entry rules and high costs.
United States: International interest up — foreign buyers purchased 78,000 homes (1.9% of total) between April 2024–March 2025, compared to 54,000 the year prior.
Emerging Challenges
- Visa restrictions
- Financing barriers
- Geopolitical uncertainty
- Bureaucratic delays
- End of Golden Visas
- Increased taxation
Top 3 Reasons for International Purchases
| Country | Reason 1 | Reason 2 | Reason 3 |
|---|---|---|---|
| Barbados | Lifestyle | Holiday Home | Retirement |
| Caribbean | Lifestyle | Holiday Home | Retirement |
| France | Lifestyle | Holiday Home | Family |
| Italy | Lifestyle | Holiday Home | Retirement |
| Jersey | Tax | Lifestyle | Family |
| Portugal | Lifestyle | Holiday Home | Retirement |
| South Africa | Family | Retirement | Lifestyle |
| Spain | Lifestyle | Retirement | Holiday Home |
| Switzerland | Tax | Family | Lifestyle |
| United States | Family | Lifestyle | Retirement |
Disclaimer:This publication is for general information only. Hamptons accepts no responsibility for any loss resulting from use of this content. All data and forecasts are for informational purposes and not financial advice. Reproduction is not permitted without written consent from Hamptons International.