LuxuryBuyersFlexSpending Power? andExpandOptions? InInternationalMarkets

Between the surge in global wealth and the continuous ups and downs of the financial markets,snapping up high-end properties abroad serves as both a stable investment and a means of diversifying financial portfolios

In their eagerness to keep their options open, high-end international buyers aren? t just flooding into the secondhome markets that have boomed throughout the pandemic? they?re expanding their purview into major global cities as well

?Last year,probably 40% of our sales in Mexico City were to foreign buyers,and this year I?m guessing it will be 60%,?says Rodrigo Pérez del Toro,sales associate,Mexico Sotheby?s International Realty ?Mexico City wasn? t previously the typical area where foreign buyers would invest in Mexico,but we have been achieving a different level of buyers Right now,we have a buyer interested in purchasing several properties from US$5 million to US$30 million?

As travel and business continue to open back up,globetrotting property owners are eager not just for spacious,ultra-luxe resorts and compounds,but also for footholds in prominent international hubs

In Ireland,foreign buyers ?are typically looking for properties in the two largest cities,Dublin and Cork,?says David Byrne, managing director,Lisney Sotheby?s International Realty ?Ireland is a very significant hub for European headquarters,and a lot of US companies have headquarters here as well,especially in the tech and pharmaceutical sectors?

While Ireland has ?no particular tax advantage for the individual,?Byrne notes,the 125% tax on corporate income is ?deemed very attractive for multinationals,and brings in those large employers,which has the knock-on result of providing high-end jobs that attract people from London or New York or Singapore back to Ireland?

TopEuropeanTaxHavens

These countries provide refuge from income taxes,capital-gains taxes, and corporate taxes,according to expensivity com

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Source:wwwexpensivitycom,December 2021

And in many global hubs seeing a surge in popularity,the same amount of money can achieve a much higher quality of life for buyers than in destinations like London or New York City

?The quality-of-life aspect is a very significant factor for high-end buyers here,?Byrne says.?And we have what is deemed to be a highly sought-after education system,which is significantly less expensive than the UK or the US in terms of private schools?

Similarly,in Mexico City,clients ?can buy beautiful properties for US$1million to US$3 million?

Croatia is emerging as another up-and-coming market with a major potential value play for buyers

?With Croatia?s entry in the euro zone [in January 2023],real estate prices are expected to rise further,?says Ivana Markovi´c, real estate associate,Croatia Sotheby?s International Realty ?Starting in January,European Union citizens are able to purchase agricultural land in Croatia as private persons,?as opposed to forming a company in Croatia.

?Most of our clients are Eastern and Western Europeans,but there is an increasing number of inquiries and purchases from citizens

of the US,Canada,and Australia,?she says

In the Middle East,Egypt is seeing a boom in luxury development attracting a fresh wave of high-end buyers from abroad

?Real estate development in Egypt has seen incredible changes,especially with big names like WResidences and the Four Seasons Residences coming into the market,? says Marwan Gebril,co-founder and CEO,Egypt Sotheby?s International Realty ?Armani Residences is going to have a tower in West Cairo With all these developments at the high-end,it?s going to attract more luxury buyers from around Egypt,and from around the GCC?? referring to the Gulf Cooperation Council,which includes Bahrain,Kuwait,Oman, Qatar,Saudi Arabia,and the United Arab Emirates

The rush of new developments is catering to a longer-term trend of popular demand for luxury vacation properties

?Saudi buyers,Kuwaiti buyers from all across the GCC,these are the buyers that really like to spend time in Egypt,especially on the north coast,?Gebril says ?The north coast has an amazing white-sand beach with turquoise water,and everyone from around the GCC comes and spends their summer season here It?s all luxury villas,and some of those developments have extra cabins for families to spend the day together on the beach?

In Cairo,properties overlooking the Nile River will always command a premium ?This has always been the classic location in Egypt,?Gebril adds ?There?s new development in other areas,but the Nile is the Nile.It?s the heart of Cairo.?

With the current pace of activity,comparative bargains in some international locations may not stay that way for long

?There are still some good opportunities [in Mexico],?Del Toro notes ?But they?re becoming scarcer and more difficult to find?

A similar story is already playing out in parts of Croatia ?We have a high demand for newly built apartments on the coast and for island and luxury villas,?Markovi´c says ?And there?s a lack of inventory on offer because the clients who initially purchased those properties as investments now don? t want to sell them?