A new global ranking of cities real estate investors favor for luxury property finds most attractive in 2025 places Madrid at the top, followed closely by Dubai, Miami, Monaco, and Milan.
The report highlights how these five markets combine strong economic growth, quality of life, and long-term investment potential. From Dubai’s modern skyline to Miami’s thriving coastal communities and Europe’s cultural capitals, each destination offers its own blend of opportunity and lifestyle appeal.
The findings are part of an annual global property index compiled by the international real estate firm Barnes, which tracks trends and performance in the world’s high-end housing markets.
According to the company’s Global Property Handbook 2025, Middle Eastern cities such as Dubai, Abu Dhabi, Doha, and Riyadh are reshaping their urban landscapes through massive infrastructure investments and international talent-attraction strategies.
Dubai ranks second thanks to its rapid economic expansion, favorable tax environment, and ability to draw both families and young professionals. Luxury properties there have appreciated by an average of 15%.
Miami continues to stand out as one of the most sought-after luxury markets in the United States, driven by the city’s growing tech and finance ecosystems and the flexibility of remote work. The city’s vibrant lifestyle and international appeal continue to attract investors.
Closer to home, Key Biscayne is highlighted in the report after luxury home values rose by as much as 9%. A $1 million purchase on the island, according to the study, nets about 1,184 square feet of living space.
How does that compare to other South Florida neighborhoods? Across the Rickenbacker, the same investment in Coconut Grove buys roughly 969 square feet, while in Miami Beach, $1 million gets you about 1,076 square feet. Want a little more room? Move inland, where that same amount buys around 1,292 square feet of living space.
What does $1 million buy you in some of Madrid most desirable neighborhoods? In ChamberÃ, one of Madrid’s most elegant and traditional districts, a $1 million investment can net a beautiful home with 1,076 square feet of living space.
In Europe, Monaco and Milan remain benchmarks for stability and style. The Principality offers security, political calm, and a favorable tax climate, helping luxury properties appreciate up to 10% annually. Milan, meanwhile, continues to thrive as a hub of fashion, culture, and finance, with upscale neighborhoods such as Magenta seeing property prices climb around 8%.
For investors seeking waterfront destinations, the report points to areas such as Palm Beach and the Hamptons in the U.S., St. Barts in the French Caribbean, the French Riviera, and Santa Teresa, Costa Rica, all of which combine beautiful beaches and coastal living, strong tourism, and an appealing year-round climate.
With its 2025 index, Barnes underscores that the global luxury real estate market is no longer centered only on major capitals but is expanding toward unique destinations that offer stability, exclusivity, and lifestyle-driven value.