4 Real Estate Trends To Watch For 2025

Wondering whether a second home is a good lifestyle investment? Here is where to watch:

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1. Tuscany

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The spotlight was on Italy in 2024. And since the residential sector showed stable growth, with idealista reporting an average yield of 9.3%, up from 8.8% in 2023, it is no surprise that it remains in the spotlight. Tuscany, in particular, boasts endless allure and is a region of Italy that Antonio believes might attract more attention from peope looking for a second home in 2025. “Italy is so rich with history and culture, it is very unique in itself and every region offers a wealth of completely different experiences,” says Antonio. “You have so many places to visit. In Tuscany, for example, there is not just Florence, but also Lucca, Siena, and Pisa - they are all individually marvellous.” Furthermore, though the Tuscan residential real estate market might fluctuate, properties in the region tend to retain their value - especially when of high calibre, as you can expect with an August home. Another recent report by idealista noted continued stability in the Real estate market in Tuscany, throughout 2024: with a slight 0.4% increase in the third quarter of this year. For more to tempt you to this rich area of Italy, we have endless advantages to vacationing in Tuscany in 2025 and beyond...

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2. Apulia 

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Exploring the peninsula, Antonio shares how there is always a big market in Sardinia and Liguria too. More recently, however, Puglia is having a moment… “From what I can see, everyone wants to buy in Puglia, because of the food, the sea, and nice little villages. In this area, we have Lecce, which Italians call the Florence of the south. There is Ostuni, the white city, punctuated by little white houses,” continues Antonio. “There are lots of trendy parts in Puglia that are drawing attention.” 

Italian real estate website immobiliare.it notes an average property sale price increase of 5.51%, in September 2024 compared to September 2023 - a significant improvement since the pandemic slump. June 2024 was its peak value; and with sales up year over year, 2.1%, according to idealista, this market is one to watch for 2025.

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3. Barcelona and the Balearics

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With its sunny disposition, emblematic architecture and effervescent culture, Spain is still iconically popular for real estate investment. Among Valencia and Marbella, both proving more active members of the property market in recent years, Barcelona and the Balearics remain ever-attractive destinations for international buyers according to recent research by Savills. Particularly across the Balearic islands, where 38% of 15,000 transactions in 2023 came from foreign investment. 

‍Buying property in mainland Spain leaves room to explore other hotspots and newly emerging market movers like beautiful Valencia and Seville. Much like Mallorca, the largest of the Balearics, opens a world of coastal delights and a unique lifestyle.

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4. Central London

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With the UK housing market almost back to pre-pandemic levels according to Savills UK Housing Market Update - October 2024, annual growth sits at 3.2% which is the strongest figure since November 2022. Though the south proved slower, “London outperformed with annual growth of 2.0%,” said the report. 

Consequently, the UK capital is still hot on the real estate market for 2025, Antonio speaks of central London’s sustained prosperity: “Prime central property always keeps its value, even when the market goes down”. Particularly in affluent areas such as Mayfair, cash buyers allow the market to keep on going. “It’s much quicker to recover from a slump and always very stable so it remains attractive for investors.”

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To enjoy the best of Europe and experience unique locations, arrange a call to find out more about August Collections and co-ownership.‍