Cyprus took first place with a score of 8.25, while Australia ranked ahead of several well-known European locations. Malta (7.11), Italy (6.91) and Greece (6.76) rounded out the top five destinations in the index.
Climate and lifestyle win out
Australia’s position was supported by its climate indicators and lifestyle density. The report found that Australia ranked third globally for average monthly rainfall, at 36.94mm, and seventh for average temperatures at 22.8°C. The research also cited a concentration of 405 restaurants per 100,000 residents, contributing to the country’s overall lifestyle score.
For lenders and brokers, the findings point to continued appetite for secondary properties in key coastal and regional markets. The report identified established hotspots such as the Gold Coast, Sunshine Coast, Port Douglas and Byron Bay, as well as emerging destinations including Launceston in Tasmania, the Yarra Valley and Daylesford in Victoria, and Western Australia’s Margaret River.
Stephen Zeller (pictured right), general manager of money at Compare the Market Australia, noted that potential buyers needed to approach holiday home purchases with a clear financial lens. “Buying a holiday home is about more than just finding a beautiful location; it’s about making a smart financial decision,” he said.
“Affordability is a key factor, as is weather and lifestyle amenities. Italy, for example, offers accessible housing prices compared to other European nations, which can make financing more manageable. That’s where comparing home loan options becomes crucial.