Welcome
With the holiday season fast approaching and the weather beginning to cool in some parts of the world, our thoughts turn to enchanting resort destinations where the sun continues to shine brightly. It’s during this time that the peak season for second home buyers and holiday makers alike begins in these regions, making it the perfect moment to check in on some of our prime resort destinations around the world.
As we reflect on recent trends in the Cayman Islands, Laguna Beach, Los Cabos, Marbella, Naples, and The Bahamas, we notice a cooling of the markets compared to the height of the pandemic. This has resulted in a shift to buyer’s markets and adjustments in property values.
Despite this new environment, high-quality properties continue to attract discerning buyers seeking both investment potential and a luxurious lifestyle. From stunning beachfront estates to exquisite rental opportunities, the inventory is diverse and compelling.
Moreover, favorable tax environments in some island communities remain appealing to high-net-worth individuals. Whether you are seeking a vacation home or a permanent residence, the possibilities are endless.
We invite you to explore current market trends in each of these locales in the pages that follow in our second annual Resort Report.
Gino Blefari Chairman | CEO Berkshire Hathaway HomeServices
Courtesy of Christopher Kuzman at Unsplash (left), courtesy of Alec Bennett at Unsplash (right).
Cayman Islands Prime Properties Are In Demand Caymans Island
The Cayman Islands, nestled in the western Caribbean Sea, are a premier destination celebrated for their pristine beaches, turquoise waters, and lush landscapes. Comprising Grand Cayman, Cayman Brac, and Little Cayman, these islands are ideally positioned as a gateway between North America and Central America, making them an accessible and highly desirable locale for both leisure and investment.
In the Cayman Islands, the real estate market is currently experiencing a blend of cautious optimism and steady resilience. Like many global markets, the local scene faced a slowdown due to rising interest rates, which initially led to a slower period.
However, Paula McCartney, Owner of Berkshire Hathaway HomeServices Cayman Islands, notes that momentum is building and anticipates the return to a strong and active market for the peak season , midNovember through April, and beyond.
McCartney highlights a strong demand for high-quality, turnkey properties, particularly among those seeking vacation homes. With limited developable land and very tight inventory, buyers are eagerly anticipating new offerings, especially those located directly on the Seven Mile Beach.
“New developments—such as the emerging Lacovia project—
We also now have direct flights from Los Angeles to the Cayman Islands, enhancing our connection with Southern California”
Paula McCartney Owner
Berkshire Hathaway HomeServices Cayman Islands
Courtesy of Kinø at Unsplash (left), courtesy of Ronny Rondon at Unsplash (middle), courtesy of David Brown at Adobe Stock (right).
present exciting opportunities, offering substantial capital appreciation potential for early investors,” McCartney explained. “This redevelopment along the renowned Seven Mile Beach is a rare opportunity, and many buyers have already committed to purchasing properties there due to its prime location, high-end amenities, and unparalleled luxury lifestyle.”
The ease of access to the Cayman Islands adds to their appeal for those seeking a second home or investment property. There are multiple commercial airlines that fly to the Cayman Islands and there is also a very popular private air terminal.
“We also now have direct flights from Los Angeles to the Cayman Islands, which is fantastic,” McCartney said. “Enhancing our connection with Southern California.”
Overall, the majority of buyers in the Cayman Islands are from North America, followed by the United Kingdom.
McCartney added, “The Cayman Islands is, and always will be, a great place to invest. Regardless of market fluctuations, highnet-worth individuals are drawn to the Cayman Islands for both its attractive tax neutrality and breathtaking beauty.”
Laguna Beach: A Second Home Haven
The allure of Laguna Beach’s lifestyle—characterized by picturesque beaches and coves, quaint shopping districts, art galleries, and vibrant community events—continues to attract a diverse array of buyers and investors, despite current market fluctuations.
In this small coastal city in Orange County, there are currently 175 active listings, with only 26 pending, according to Jim Vermilya, Manager at Berkshire Hathaway HomeServices California Properties in Laguna Beach. This means only 15% of properties for sale are under contract—representing a decrease from the typical 20 to 22% seen in previous years.
Despite the slower pace of the market, Vermilya notes that buyers remain willing to pay premium prices for properties that are fairly priced and turnkey, particularly in the entrylevel luxury range, which spans from $2 million to $4 million. “Properties priced under $4 million are performing relatively better compared to their high-end luxury counterparts,” he said.
Laguna Beach’s diverse regions present a complex landscape. North Laguna, traditionally more expensive, contrasts with South Laguna, which is relatively more affordable. South Laguna, annexed to the city in 1989, features smaller lots and older bungalows. Currently, even properties under $2 million are attracting multiple offers due to high demand.
Exclusive areas like Emerald Bay and Three Arch Bay continue to command premium prices. “Homes in Three Arch Bay might start around $4 to $5 million, with the upper end reaching $40 million and above,” Vermilya noted. Emerald Bay properties follow a similar trend, often starting around $6 million depending on their proximity to the ocean and quality of an ocean view.
A significant portion of Laguna Beach properties are non-owneroccupied, with second homes and investment properties making up approximately 56% of sales. The market is driven by a mix of local and out-of-state buyers, including those from Arizona, Las Vegas, and Colorado, seeking either second homes or investment properties.
Summer rentals in Laguna Beach also reflect the area’s high-value status, with rates for premium properties reaching up to $40,000 per month. Yearly rentals command impressive sums as well, often around $15,000 per month.
Properties priced under $4 million are performing relatively better compared to their high-end luxury counterparts."
Jim Vermilya Manager
Berkshire Hathaway HomeServices
California Properties in Laguna Beach
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Los Cabos Poised For Peak Winter Season
Los Cabos continues to be one of Mexico’s most sought-after resort destinations, offering a blend of relaxed and luxurious beach living. However, the real estate market has evolved over the past year, creating a new landscape for both buyers and sellers.
Ian Gengos, Owner and Broker of Berkshire Hathaway HomeServices Baja Real Estate, notes that the
market has cooled following a very strong period. This slowdown aligns with typical seasonal patterns and is compounded by external factors such as the upcoming U.S. elections and fluctuating currency values.
Inventory levels have rebounded, especially in the entry to midrange segments, with estimates indicating a supply of about one and a half to two years’ worth of
Courtesy of Marco Samaniego at Unsplash (left), courtesy of Greg Bulla at Unsplash (middle), courtesy of David Nieto at Unsplash (right).
Despite the slowdown, there’s cautious optimism for a rebound in activity as the market approaches the holiday season and various events in Los Cabos that typically draw tourists. The Board of Tourism anticipates stable occupancy rates, with a slight increase in international tourist flights. This ongoing influx of travelers is encouraging, particularly for high-end rentals.
"I’m cautiously optimistic that, as we move through the election into November, we'll see some activity, regardless of which administration is set to take the White House," Gengos said.
I’m cautiously optimistic that, as we move through the election into November, we'll see some activity, regardless of which administration is set to take the White House."
Ian Gengos Owner and Broker Berkshire Hathaway HomeServices
properties. In contrast, the highend market remains somewhat constrained, as buyers continue to seek prime properties in ultra-luxury communities like Chileno Bay, Eldorado, The Cove, and Querencia.
The strength of the U.S. dollar is incentivizing buyers, while the fluctuating peso affects local purchasing power. As a result, a significant buyer’s market is emerging, with many adopting a wait-and-see approach amid geopolitical volatility and interest rate changes.
Interestingly, while many properties remain available, transactions have notably decreased, with less than 10% of active listings going under contract in the last 60 days. Developers are feeling the pressure as they seek clarity in this cautious environment, raising concerns about stalled projects and market sustainability.
Looking ahead, the market is expected to gain momentum as the storm season ends and the new year approaches, creating potential for increased interest in both investment and vacation properties. As buyers evaluate their options, the focus remains on established master-planned communities with robust amenities. For those in the market, now may be a strategic time to explore opportunities, balancing the allure of current offerings against the backdrop of a waiting market.
In Demand: Luxury Soars in Marbella
Marbella’s sheer beauty and luxurious lifestyle make it a popular resort destination in Spain for those who want to soak up the warm summer sun and enjoy golfing, boating, fine
dining, shopping, and more. Located on Spain’s Costa del Sol, the Sierra Blanca Mountains provide a stunning backdrop for the coastline and marina, lined with rows of exquisite yachts.
Buyers are increasingly valuing walkability, accessibility, and community engagement."
Lorena Tudor Customer Relations Manager Berkshire Hathaway HomeServices
Lorena Tudor, Customer Relations Manager at Berkshire Hathaway HomeServices Marbella, describes the current real estate market as competitive, with strong demand surpassing supply. Limited inventory is pushing prices higher, particularly in the luxury sector, where buyers from both domestic and international markets are seeking preeminent properties.
As of June 2024, Tudor said the average price per square meter in Marbella had risen to €4,812, marking a 13.7% increase compared to the same month in 2023. New developments and high-end properties continue to fetch premium prices, particularly in prime areas like The Golden Mile and Nueva Andalucía.
“This growth in property values, coupled with limited supply, continues to push up prices, making it an appealing but competitive market for buyers,” Tudor said.
In terms of buyer preferences, there is a clear trend toward high-end luxury villas equipped with modern amenities. Buyers are increasingly interested in properties that offer wellness features, including gyms, spa facilities, and yoga studios. Gated communities and urban areas are also gaining popularity due to their proximity to essential amenities, schools, and recreational spaces.
“Buyers are increasingly valuing walkability, accessibility, and community engagement,” Tudor said.
There’s also a growing trend for properties with low maintenance fees, as buyers seek to enjoy their homes without excessive upkeep demands, especially since the majority are vacation homes and not used year-round.
Buyers hail from diverse regions, including Europe, the U.S., China, and the Middle East. Most buyers in this competitive environment are looking for second homes or investment properties, with a notable interest in ultra-luxury listings that can exceed €10 million. While there are mid-range options in the €500,000 to €1,000,000 range, the market is increasingly leaning toward high-end properties priced over €1 million.
In response to demand, there is a considerable amount of new construction, especially within the luxury segment, focusing on highend villas and modern apartments. However, land constraints and strict planning regulations have limited the overall supply, keeping prices elevated and further emphasizing Marbella’s appeal as a sought-after destination for luxury real estate.
Marbella
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The Pristine Shores of Naples Draw Buyers Year-Rou nd
Situated along the Gulf of Mexico in southwest Florida, Naples is celebrated for its stunning tropical scenery and high-end lifestyle. The city combines luxury living with a welcoming community atmosphere, attracting buyers year-round.
According to Sherry Stein, Managing Broker at Berkshire Hathaway HomeServices Florida Realty in Naples, “We offer Broadway-style theater, a fabulous nightlife scene, world-class shopping, and pristine beaches—people come from all over the world to enjoy. However, Naples still has a small, hometown feel.”
The Naples real estate market sees a surge in activity from October to April when seasonal residents, buyers
from colder climates and global visitors flock to the city. This influx traditionally included retirees and second-home owners, but the appeal has broadened since the pandemic, with more families and younger buyers discovering Naples. The city’s attractiveness as a year-round destination has contributed to a steady increase in full-time residents.
Naples offers a wide range of properties, catering to various lifestyles and budgets. From luxurious waterfront estates and high-rise condominiums to more affordable single-family homes, attached villas, and low-rise condos, the market is diverse. Some communities feature extensive amenities that may include private golf courses, tennis facilities,
We offer Broadwaystyle theater, a fabulous nightlife scene, world-class shopping, and pristine beaches— people come from all over the world to enjoy."
Sherry Stein Managing Broker
Berkshire Hathaway HomeServices
Florida Realty
pickleball, fitness centers, on-site bars and restaurants, along with resort-style pools. Other areas, like Golden Gate Estates, provide larger, much more rural properties with no restrictions.
The average home price in Naples is approximately $1 million, though the market includes options starting around $350,000. Highend properties, particularly in exclusive areas like Port Royal, can exceed $62 million. The city’s real estate market has experienced a steady increase in home prices in recent years, aligning with national trends. However, Naples has managed to maintain relatively stable values, underscoring its strong investment potential.
Stein highlights that buyers are particularly interested in properties offering resort-style amenities, including proximity to golf courses and beaches. Communities with extensive amenities or coastal locations are in demand. Currently, the inventory in Naples is about six months’ worth, indicating a balanced market. While inventory has increased recently, it remains well below prepandemic levels. During the peak season, inventory tends to increase as many sellers wait for this time to list their properties, but the season still brings a competitive environment. In contrast, the off-season from late spring to early fall sees fewer buyers, although many buyers shop during this slow time to try to seek deals or to acquire seasonal rentals.
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Tourists Become Buyers in The Bahamas
Comprising hundreds of idyllic islands, crystal-clear waters, and unparalleled amenities, The Bahamas continues to captivate those seeking a slice of tropical paradise.
Jim Bernard, President and Broker of Berkshire Hathaway HomeServices Bahamas Real Estate, noted that, while 2024 has seen a period of adjustment following the dramatic property value increases of 2022 and 2023, the market is still vibrant.
Tourism figures add to the market’s optimism. In 2023, The Bahamas welcomed a record 9.6 million visitors, a 38% increase from the previous year and a 33% rise from the pre-pandemic peak in 2019.
Early 2024 data is promising, with 4.8 million visitors recorded by May, indicating a continuation of this positive trend. This influx not only boosts The Bahamas' reputation as a desirable destination but also fuels interest in second homes among captivated tourists.
“These tourism numbers demonstrate that The Bahamas is viewed globally as a safe and alluring destination,” Bernard said. “Many visitors fall in love with the islands and choose to purchase second homes here.”
The market is also experiencing an exciting return of high-value properties and premium rentals.
“Some new listings include a breathtaking $35 million beachfront estate, a $8.75 million residential canal lot in a gated community with 509 feet of water frontage and 270-degree views, a $6.8 million
residence, and rental properties commanding $35,000 and $25,000 per month,” Bernard said. This fresh wave of inventory is set to attract buyers and investors seeking exceptional opportunities in this stunning region.
Homes typically remain on the market for six months if accurately priced. “Six months is the average for homes to trade here in The Bahamas. That is a stable market for us,” he said.
The Bahamas remains attractive to high-net-worth individuals due to its favorable tax environment, with no income tax, capital gains tax, or inheritance tax. This unique appeal further enhances its status as a premier destination for discerning buyers and investors.
The Bahamian real estate market is poised for a bright future, supported by robust tourism, high-value property returns, and favorable tax incentives. The combination of these factors underscores The Bahamas' position as a top choice for those seeking both investment opportunities and a luxurious lifestyle.
Many visitors fall in love with the islands and choose to purchase second homes here.”
Jim Bernard President and Broker
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