Luxury Real Estate Hot Spots Diversify Around the Globe

Since the pandemic upended the world and made remote and hybrid work the norm, high-net-worth buyers have been discovering and settling in more off-the-grid locations, opening up new markets outside cities and towns around the world, and making so-called feeder markets for luxury buyers more diverse.

In the luxury market, according to a report by Realtor.com that examined the increased pace of listing viewership by comparing pre-pandemic and pandemic times, many U.S. cities have fared well. Among them, the Virginia Beach area, the Cleveland, Ohio area, the Miami-Fort Lauderdale area and many more.

From Latin America to the Caribbean to Europe and the U.S., these areas are seeing sustained interest from high-end buyers.

According to a survey of The Agency agents, only around 18% of respondents say they’ve seen luxury migration stop since Covid. While the majority of respondents said that migration has slowed since the peak of the pandemic, the shift is still there.

PANAMA CITY

Panama City, a global business hub that has earned a reputation as the “Singapore of the Americas,” has seen an influx of diverse high-net-worth buyers in recent years.

The typical purchasers—from the U.S., Canada and Europe—have been joined by their peers from Latin American countries, including Colombia, Venezuela, Peru and Argentina. There is also growing interest from Asia, particularly China.

“The diverse buyer demographic reflects Panama’s appeal as a global destination for luxury real estate, offering a blend of modern amenities, natural beauty and a welcoming environment,” says Victoria Levitam Cohen, Managing Partner at The Agency Panama. “The combination of economic stability, strategic location and favorable residency policies further enhance its attractiveness to a wide range of affluent buyers.”

The variety of luxury housing, which ranges from condos with ocean views to exclusive beachfront villas and private islands, is a major draw.

She notes that Panama’s significant tax benefits— there is no income tax on foreign-earned income, no inheritance tax and a range of other incentives—and its Qualified Investor Visa program, which allows individuals to gain permanent residency by buying real estate or investing in the stock market, have proved particularly attractive to remote workers and expatriates who are setting up family offices.

“Panama’s privacy laws, combined with the availability of exclusive properties like private islands and penthouses, make it a top choice for celebrities and others seeking discretion and luxury,” she says.

The most popular areas are Panama City and its beachfront communities such as Buenaventura and Coronado. Emerging communities that are attracting a lot of attention range from Boquete, which has a cooler climate, to Pedasi, which offers seclusion and world-class surfing.

Other favorites are Santa Maria, which has a luxury golf course designed by Jack Nicklaus, and the Pearl Islands, a private development that has plans for a Ritz-Carlton Reserve Hotel and Private Residences and a branded fishing village.

“Panama,” Levitam Cohen adds, “is quickly becoming the premier destination for luxury real estate investment. It’s poised to be the next Miami or Los Cabos.”

CLEVELAND, OHIO

The influx of newcomers interested in making their home in Cleveland has “skyrocketed,” pushing prices to record highs, according to David Ayers, Managing Partner at The Agency Cleveland.

Noting that the city’s real estate has been undervalued since 2008, he says the typical 6,000-square-foot house that sold for $700,000 at the end of 2020 and beginning of 2021 now trades at $1.4 million—double the price.

“In the summer of 2024, we listed two properties— one for $20 million, and one for $14 million, which are records not only for the city but also for the entire state,” he says.

Nick Zawitz, Managing Partner at The Agency Cleveland, says that pre-pandemic parcels that brought $100 to $200 per square foot have climbed to $300 to $400 per square foot.

Out-of-state investors and buyers from high-priced markets on the East and West Coasts, notably New York, California and Portland, Washington, and even Chicago, are discovering that the Midwest city has a lot to offer. Many of them have multiple homes.

“It’s a different way of life,” says Ayers, an Ohio native who relocated from New York City in 2021. “But you’re still near a major metropolitan city. And you’re near Lake Erie. There are rolling hills and trees; it feels like Connecticut and upstate New York. What you get for $5 million is so much more than in some of these markets.”

Rated in 2023 by National Geographic as one of the most livable cities resiliently weathering climate change, Cleveland is home to a variety of cultural amenities, including the Cleveland Orchestra. It’s also home to the top-ranked Cleveland Clinic.

TURKS AND CAICOS

An increase in the number of airline flights has opened up the Turks and Caicos market to more home buyers from Texas and the Midwest, who are adding to the growing population of residents who hail from the eastern U.S., Canada and to a lesser extent, the U.K.

“Our predominant market remains second and third homes, largely for a combination of usage and investment,” says Sean O’Neill, Managing Partner at The Agency Turks and Caicos. “We are seeing more families moving here as our economy grows and seeking primary homes.”

The main attraction of the 40-island British Overseas Territory archipelago that’s southeast of the Bahamas is the gateway island of Providenciales, which is home to the international airport and a new $3.8 billion development project.

O’Neill notes that the outer islands, such as South Caicos and North Caicos, are attracting more attention and development because prices are significantly lower, sometimes only 10% of what they are in Providenciales.

“Turks and Caicos remains an escape, particularly for those on the Eastern Seaboard of the United States,” he says, adding that the increase in international brands, such as the St. Regis, the Hyatt Andaz, Kimpton and InterContinental, are making the area even more attractive. “They can get on a plane in the morning and be in their homes by lunch.”

Prices, which increased significantly during the pandemic, are holding steady. “With properties that are rarely leveraged beyond 50%, if at all, and lack of annual property tax, sellers aren’t often motivated to sell,” he says, and “this pushes up prices.”

MEXICO CITY

Some buyers from as far away as Texas, New York and California, as well as local purchasers from Monterrey, are discovering luxury properties in Mexico City, with the city seeing its population grow steadily. In fact, Mexico City's 2024 population is estimated at 22,505,30 having grown by 223,900 in the last year—a 1% annual change, according to World Population Review

Condesa, Roma Norte, Lomas de Chapultepec, Polanco, Virreyes, Pedregal and the golf clubs —Club de Golf Bosques, Lomas Country Club, Club de Golf de Santa Fe, Bosque Real, Valle Escondido and Club de Golf Chiluca—are the biggest draws, says Ricardo Umansky, Managing Partner at The Agency Mexico City.

Although demand is increasing in the city’s offthe-radar areas like Tabacalera, San Rafael and Juarez, they are not luxury communities.

“But they are driven by a luxury market,” Umansky says. “Prices have gone up so much in Roma Norte and Condesa that people who can’t afford them look for other options. Developments in these areas are being created to cover a high demand for properties for not-so-high prices. They are for investors who will rent out units or local professionals who want to get an affordable primary home.”