Greece rising in the global luxury real estate market

This is the central conclusion of Knight Frank’s The Wealth Report 2026, which portrays a market that continues to expand despite global turbulence, with Europe — and destinations such as Corfu alongside it — strengthening their position as safe havens for international capital.

In 2025, prices of luxury residential properties worldwide increased by 3.2%, slightly below the 3.6% growth recorded the previous year. Of the 100 markets monitored by the PIRI 100 index, 73 registered price increases, while only 24 experienced declines. Tokyo emerged as the standout performer with an extraordinary rise of 58.5%, while Dubai maintained its impressive trajectory with growth of 25.1%.

Europe recorded an average growth rate of 3.3%, reaffirming its role as one of the principal pillars of the global luxury real estate market. Interest rate cuts by the European Central Bank during 2025 strengthened investor appetite, while the weakening of the euro made European real estate more attractive to buyers from the United States and the Middle East.

However, the new European wealth landscape is being shaped primarily by taxation. The abolition of the United Kingdom’s non-dom tax regime is redirecting a significant share of international wealth toward more tax-friendly jurisdictions such as Italy, Switzerland, Monaco, and the United Arab Emirates. Milan, Madrid, and Malta are emerging as new hubs for ultra-high-net-worth investors who are increasingly adopting a “dip-in, dip-out” lifestyle model: remaining connected to London or New York while residing permanently in regions with lower tax burdens.

Within this new environment, Mediterranean lifestyle destinations are gaining even greater prominence. The report explicitly notes that markets such as Marbella, Tuscany, the Alps, and Corfu continue to hold strong appeal for ultra-high-net-worth investors seeking quality of life, discretion, and security. Although Greece’s presence in the report is relatively limited, the inclusion of Corfu alongside Europe’s leading destinations is regarded as particularly significant for the country’s image within the international luxury housing market.

The report also identifies a fundamental shift in the behavior of affluent buyers: the era of vast “trophy homes” appears to be giving way to more functional and fully serviced properties. Ultra-wealthy investors now spend fewer than 90 days per year in each major city, preferring smaller yet impeccably managed residences. Demand for turnkey properties — homes ready for immediate occupancy — is surging in markets such as London, New York, and Dubai.

At the same time, the luxury rental market is experiencing rapid growth. High taxes and uncertainty are prompting many investors to avoid property purchases in favor of ultra-luxury rentals that offer maximum flexibility. According to the report, prime rental prices in New York, London, and Singapore increased by 63%, 53%, and 48% respectively over a five-year period.

Particular emphasis is also placed on the concept of scarcity. In leading markets such as Miami, Singapore, Aspen, and London, the limited supply of completed high-specification residences is acting as a major driver of price growth. Knight Frank estimates that the global market for branded residences — properties associated with luxury brands or hotel chains — will exceed 1,000 projects by 2030.

Europe, however, is not developing uniformly. London continued to face downward pressure, recording a decline of 4.7%, while Zurich rose by 4.6% and Paris by 1.3%. The Iberian Peninsula emerged as one of the year’s major winners, with Porto recording growth of 8.5% and Marbella 8.1%, driven by capital inflows from Northern Europe, the United States, and Latin America.

At the same time, the report forecasts that 2026 will be a year of heightened volatility due to geopolitical tensions and uncertainty surrounding energy and interest rates. Nevertheless, European luxury real estate markets are expected to remain resilient, as investors continue to view the continent as a safe haven.

The report also highlights several major emerging trends that are expected to shape the real estate market in the coming years: the explosive growth of data centers driven by artificial intelligence, the convergence of blockchain and real estate, and the increasing importance of energy efficiency for the buildings of the future. Electricity demand from data centers is projected to rise by 127% by 2030, creating substantial investment opportunities in infrastructure and energy-efficient real estate.

Within this environment, Greece appears to have a significant opportunity ahead. The reference to Corfu as a premium lifestyle destination confirms that the country is beginning to establish a more consistent presence on the international luxury real estate map. Stability, climate, quality of life, and the growing international visibility of Greek destinations may serve as powerful advantages at a time when wealthy investors are seeking not only returns, but also meaningful lifestyle experiences.