The world’s wealthiest investors are shifting their sights. In 2025, luxury real estate investment is more global and strategic than ever.
From tax-free cities to tropical escapes, high-net-worth buyers want lifestyle, strong returns, and long-term value.
So, where should you invest this year? Read on as we unpack your options!
5 International Destinations for Luxury Real Estate Investment
Let’s explore the top five global luxury real estate investment destinations in 2025.
1. Dubai, UAE: A Tax-Free Haven for Luxury Property Investors
Dubai tops the list of luxury real estate investment destinations in 2025. This global hub offers more than just high-rises and designer labels:
- Zero income tax for individuals and rental income
- 100% foreign ownership is allowed in freehold zones
- Flying taxis are already in testing by Joby Aviation and Ehang
- Golden Visa offers a 10-year residency for real estate investors
From Palm Jumeirah’s beachfront villas to Binghatti’s iconic towers in Business Bay, the options are world-class.
If you’re seeking tax-free returns and modern living, Dubai is your launchpad.
Next up: A bohemian paradise that’s catching investor eyes.
2. Tulum, Mexico: A Boho-Luxe Real Estate Hotspot
Tulum has transformed from a sleepy beach town to an eco-luxury capital. It’s where wellness meets ROI.
Thanks to the new Tulum International Airport and the Maya Train, access has never been easier.
Investors flock here for short-term rental returns, often 8% or higher in popular zones like Aldea Zama.
Foreigners can safely buy coastal property through Mexico’s fideicomiso trust, giving full ownership rights. Buyers can rent, resell, or inherit their properties without hassle.
Tulum is more than a trend. Its sustainable design, rising demand, and boho-chic vibe give it long-term staying power.
Looking for European elegance next? Let’s head to Portugal’s sunny south.
3. Algarve, Portugal: Coastal Elegance Meets European Stability
Portugal’s Algarve blends scenic coastlines with strong financial upside. Golden beaches, charming towns, and expat-friendly living make it a standout.
Although Portugal updated its Golden Visa rules in 2024, parts of the Algarve still qualify. This means you can gain EU residency through select property investments.
The Algarve enjoys year-round tourism and high rental demand. It’s ideal for retirees, digital nomads, and families alike.
English is widely spoken, healthcare is excellent, and the cost of living is moderate. Private villas and modern apartments give buyers plenty of choice.
Now, we head back to the Caribbean for two hot spots offering sun, style, and serious potential.
4. Cap Cana, Dominican Republic: Caribbean Luxury With Global Appeal
Cap Cana is where luxury meets the sea. This private enclave offers pristine beaches, world-class golf, and yachting marinas.
Luxury homes start around $219,750, offering long-term value in a growing market.
Foreigners enjoy full property rights and a simple buying process. Residency is also easy to obtain.
Cap Cana is perfect for those who want privacy, elegance, and Caribbean flair. From boutique resorts to branded residences, it’s growing fast.
Looking for something more laid-back, but still luxurious? Let’s explore a hidden gem on the Dominican coast.
5. Las Terrenas, Dominican Republic: Boutique Beachfront Investment Potential
Las Terrenas offers a rare mix of authenticity and upscale opportunity. This French-Caribbean town is less developed than Cap Cana, but no less promising.
You’ll find beachfront condos, hillside villas, and boutique hotels with attractive prices and strong rental demand. Popular among European expats, it’s a wellness and lifestyle haven.
Las Terrenas still offers beachfront real estate under $400,000. Tourism is growing, and infrastructure is improving.
If you’re after charm, returns, and untapped potential, this is your market. It’s one of the last Caribbean frontiers for smart investors.
Final Thoughts on Where to Buy Luxury Real Estate in 2025
Whether you’re chasing ROI, residency, or a refined lifestyle, these five markets are your best bets for 2025.
Dubai, Tulum, Algarve, Cap Cana, and Las Terrenas each offer unique growth, glamor, and global appeal.
Inventory is tightening fast, and demand is only rising. The time to act? Right now!
Ready to invest in luxury real estate? At Sunset Real Estate, we help global investors buy luxury real estate with confidence.
From Caribbean villas to Dubai towers, our experts guide you every step of the way. Whether it’s your second home or your next big investment, we’ve got you covered.
Start your luxury property journey today. Contact Sunset Real Estate!
Frequently Asked Questions
Q: What is the best country for luxury real estate in 2025?
A: Dubai stands out in 2025 for tax-free income, cutting-edge infrastructure, and high rental yields. Its Golden Visa makes long-term residency simple, especially for investors.
With growing international demand, Dubai offers stability, innovation, and global prestige.
Q: Can foreigners buy property in Tulum?
A: Yes, foreigners can own Tulum real estate using a fideicomiso — an official bank trust. It’s backed by the Mexican government and provides full rights to sell, rent, or bequeath the property. This system is secure and legally used by thousands of international investors.
Q: Is the Golden Visa still available in Portugal?
A: Yes, but the rules changed in 2024. Lisbon and Porto are now excluded, but parts of the Algarve still qualify.
Buyers can gain EU residency, travel visa-free in the Schengen zone, and access top-tier education and healthcare.
Q: How much do I need to invest in Cap Cana?
A: Entry-level homes start at about $500,000. Luxury beachfront estates go for $2 million or more. There are also pre-construction opportunities offering potential for appreciation. Cap Cana delivers prestige, privacy, and premium rental potential.
Q: Which destination has the best rental yields?
A: Dubai and Tulum lead with yields between 6%–10%. Dubai shines with long-term rentals, while Tulum excels with short-term vacation stays. Cap Cana and Las Terrenas offer solid seasonal returns, especially in peak travel months.
