Europe Dominates Global Luxury Holiday Home Rankings For 2026

According to a 2026 index of high-net-worth ownership, European destinations have claimed seven of the top ten spots for holiday home investment, signalling a decisive flight to heritage, security, and lifestyle-led assets.

While the luxury market has faced a more discerning buyer pool this year, the appetite for prime second homes has remained remarkably resilient. Spain and Portugal have emerged as the clear frontrunners, joined by the perennial powerhouses of France and Italy, as well as a resurgent Austria. Outside of the European theatre, New Zealand stands as a notable outlier, securing its position through a unique combination of seclusion and natural grandeur.

The Mediterranean’s leads the way

Spain and Portugal continue to lead the charge, driven by a blend of favourable tax frameworks and a sophisticated infrastructure that caters to a year-round "work-from-anywhere" elite. In Portugal, the Algarve remains a primary target, evolving from a seasonal golf retreat into a permanent base for international wealth. Similarly, Spain’s Costa del Sol and the Balearics are seeing a "flight to quality," where turnkey, branded residences are commanding record premiums.

France and Italy round out the Mediterranean "Big Four," though their appeal has shifted toward more discreet, authentic experiences. In Italy, the "flat-rate" tax scheme for new residents has fuelled interest in Milan and Tuscany, while the French Riviera continues to set the global benchmark for Mediterranean elegance.

Austria’s inclusion in the top ten reflects a broader trend toward climate-resilient and stable investments. The Austrian Alps, particularly around Kitzbühel and Lech, are seeing increased demand from buyers seeking dual-season utility.

Meanwhile, New Zealand has cemented its status as the ultimate "safe haven" for the ultra-wealthy. Offering a level of privacy and environmental purity that is increasingly hard to find in Europe, it has become a preferred destination for those looking to hedge against global volatility.

The next generation of ownership

The 2026 data also points to a demographic shift. Millennial and Gen X buyers are now the dominant force in the holiday home market, prioritising sustainability, high-speed connectivity, and "managed luxury" over sprawling, high-maintenance estates. For these buyers, a holiday home is no longer just a vacation spot; it is a strategic lifestyle asset designed for long-term capital preservation.

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