American interest in European real estate has intensified since the start of 2025, with growing focus on central European markets. Beyond lifestyle appeal, greater global mobility and a comparatively lower price barrier are converging with considerations such as personal security, healthcare costs, and political stability to shape cross-border residential decisions.
To understand the contours of this shift, JamesEdition analysed proprietary global data, complemented by insights from partner agencies on the ground. Together, these perspectives illuminate where American buyers are directing their attention, and how their expectations of European real estate are evolving.
Andrea BusoniGeneral Manager, Dreamer Real EstateIn 2026, U.S. buyers are moving beyond trophy ZIP codes toward lifestyle geographies. Tuscany delivers cultural depth, heritage architecture and privacy at price points that still feel rational compared to blue-chip U.S. markets, while Italy’s Flat Tax regime is encouraging HNW Americans to establish residency rather than simply acquire second homes — a trend reflected locally, with roughly half of Dreamer’s €1M+ transactions involving U.S. buyers. Ultimately, demand is driven less by financial arbitrage and more by the pursuit of quality-of-life assets.
Bill ThomsonChairman of Italian Network, Knight FrankWe have noticed a significant increase in interest from American buyers at the very top of the market. For them, Italy has everything going for it right now. It is not only considered to be a great place to invest¸ with interesting tax advantages, but is also very secure, has wonderful food and wine, art, architecture and climate. Add to this recipe the great value for money that Europe represents for American buyers, and you have a winning combination.
Dimitri CortiFounder and CEO of Lionard Luxury Real Estate S.p.A.U.S. buyers today view Italy not only as a vacation destination, but increasingly as a place for long-term living—reshaping luxury real estate demand. While trophy assets in iconic markets such as Lake Como, the Amalfi Coast and Costa Smeralda continue to be seen as global collectibles, cities like Milan, Florence and Rome are attracting buyers focused on amenities, lifestyle quality and portfolio diversification. Forte dei Marmi is another emblematic example of this shift, evolving into a refined, year-round destination with growing international appeal, particularly attractive to U.S. clients accustomed to upscale coastal living.
Global Shift in American Buying Interest
Whilst the United States remains the single most popular destination with 21.2% of all buyer interest, data shows that European markets collectively attract more than half of American luxury property inquiries.
Three European countries dominate the global top five destinations, with Italy leading at a 21% share, followed by Germany (6%), France and Switzerland (5% each). These markets also recorded strong year-over-year growth, continuing to attract American buyers seeking both investment opportunities and lifestyle appeal.
Beyond Europe’s established markets, the United Arab Emirates has emerged as a dynamic growth story, experiencing a significant increase in American inquiries year-over-year to reach 2.7% of total market share.
This represents the largest proportional increase of any global destination, highlighting the UAE’s rising appeal as a luxury property market.
European Hotspots: The Five Regions Capturing American Investment
European regions maintain a strong presence in the global top 10 destinations for American buyers, securing five positions including the top two spots. Italy’s Tuscany leads all locations worldwide with a notable 3.3% share of American international property inquiries, while Lombardy and Spain’s Andalusia follows in second position with 2.6% of market interest.
The Mediterranean basin dominates these European preferences, with Provence-Alpes-Côte d’Azur capturing 2.3% of inquiries.
These traditional luxury destinations continue to attract American buyers with their distinctive combination of historical estates, vineyard properties, and coastal retreats that define the Mediterranean lifestyle.
England completes Europe’s strong showing at 1.6% of inquiries.
Beyond Europe, Dubai emerges as the leading overseas hotspot with 2.1% of American inquiries, underscoring its growing prominence in the luxury real estate landscape.
Within North America, Florida (2.8%), California (2.7%), New York (2.1%) and Texas (1.8%) represent the domestic alternatives to these international destinations.
The Mediterranean Value Proposition: 60-75% Below Premium US Markets
Italy, Spain, France, and Portugal provide exceptional value with median prices ranging between €0.9-1.6M. These destinations offer historic properties with distinctive architectural elements at significantly more accessible price points compared to premium US markets, which average over €4M.
This price differential — properties available at 60-75% below comparable premium US markets — appears to be a primary driver of American interest. European destinations offer century-old estates with authentic regional character at a fraction of domestic luxury market prices.
The Lasting Impact of America’s European Investment Shift
The data shows that there is a shift in how Americans look at international properties in 2025.
European markets position themselves as compelling alternatives to domestic options, providing good value and distinctive attractions with its historical architecture, authentic cultural experiences, and established luxury infrastructure that cannot be replicated elsewhere easily.
While the Financial Times correctly identified political and security factors as motivations, it seems clear that value considerations are equally influential in driving this behavior.
American buyers are increasingly targeting specific regional hotspots rather than entire countries, demonstrating a good understanding of local property markets.
This reflects an approach where interested parties are able to distinguish well between the unique attributes of Tuscany versus Lombardy, or Andalusia versus Madrid, seeking out particular architectural styles, lifestyle elements, and investment potential that align with their specific preferences rather than making generalized country-level decisions.
As this trend continues, Southern European markets will likely maintain their appeal while fast-growing destinations like Dubai uphold their potential in the global luxury property landscape.
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