According to Knight Frank's latest "European Lifestyle" report, Europe is confidently confirming its status as an attractive destination for wealthy individuals from around the world. Amid changing tax regimes, geopolitical instability, and revised visa programs, there has been a noticeable acceleration in the migration of wealthy individuals. A survey of wealthy households across various regions revealed that political stability, high quality of life, and effective governance are the main factors attracting investors, entrepreneurs, and families to European cities. Among continental markets, Spain, Portugal, Ireland, and Greece stand out, demonstrating the highest growth rates.
Renewed Interest in Cities.
After a period of peak demand for resort and Alpine real estate fueled by the pandemic, major cities are regaining their popularity. Today, almost half of people moving prefer an urban environment, with particular preference for cities such as Madrid, Lisbon, and Milan. The main reasons for this choice are the opportunity for privacy, a vibrant cultural life, and overall comfort of living. Coastal areas are the second most attractive. As Mark Harvey, Head of International Residential at Knight Frank, notes, "Buyers aren't just looking for picturesque views or prestigious postcodes – they're also evaluating climate change, new regulations, their own lifestyle priorities, and global mobility. Prestige remains important, but it's no longer the only determining factor."
Taxes, visas, and mobility are key factors.
Tax considerations are increasingly influencing relocation decisions: 59% of respondents cited them as a deciding factor, an increase from last year. Income and property taxes are the most significant, followed by capital gains and wealth taxes. These factors have a particularly strong influence on UK residents and millennials. Visa programs also play a significant role in changing migration flows: half of respondents stated their intention to apply for a European visa within the next five years, with the Golden Visa program proving the most attractive. Millennials are demonstrating the greatest interest in such programs.
The lifestyles of wealthy households are undergoing significant transformations, reflecting new priorities and opportunities. There is a trend toward renting before buying, allowing for greater flexibility in choosing a home and assessing it over the long term. Relocations in midlife are becoming more frequent, motivated by a desire to improve education, career advancement, or overall quality of life. The rise of remote work plays a particularly important role: 63% of high-net-worth individuals (HNWIs) reported working remotely, with the largest share of respondents in the US, UK, and Belgium. Consequently, digital infrastructure is becoming a key factor when choosing a place to live, as 71% of respondents consider the availability of ultra-fast broadband internet access critical.
Macroeconomic conditions in Europe are also contributing to the region's growing appeal for wealthy investors and residents. A significant decline in inflation is having a positive impact on real household incomes, and the European Central Bank's eight interest rate cuts have significantly reduced debt servicing costs compared to the US and UK. This creates a favorable environment for investment in real estate and other assets. GDP growth forecasts for countries such as Spain, Portugal, Ireland, and Greece make them stand out among the European continent. The Iberian Peninsula, in particular, is demonstrating outpacing growth in property values and transaction volumes, making it a particularly attractive destination.
As Kate Everett-Allen, Head of European Residential Research at Knight Frank, notes, "The wealthy have always had opportunities, but never have they realized them with such urgency or to such a large extent." These observed trends point to more than just a demographic shift. This is evidence of a fundamental shift in the global wealth landscape, where mobility, quality of life, and access to technology are becoming key drivers of decision-making for wealthy individuals.
Renewed Interest in Cities.
After a period of peak demand for resort and Alpine real estate fueled by the pandemic, major cities are regaining their popularity. Today, almost half of people moving prefer an urban environment, with particular preference for cities such as Madrid, Lisbon, and Milan. The main reasons for this choice are the opportunity for privacy, a vibrant cultural life, and overall comfort of living. Coastal areas are the second most attractive. As Mark Harvey, Head of International Residential at Knight Frank, notes, "Buyers aren't just looking for picturesque views or prestigious postcodes – they're also evaluating climate change, new regulations, their own lifestyle priorities, and global mobility. Prestige remains important, but it's no longer the only determining factor."
Taxes, visas, and mobility are key factors.
Tax considerations are increasingly influencing relocation decisions: 59% of respondents cited them as a deciding factor, an increase from last year. Income and property taxes are the most significant, followed by capital gains and wealth taxes. These factors have a particularly strong influence on UK residents and millennials. Visa programs also play a significant role in changing migration flows: half of respondents stated their intention to apply for a European visa within the next five years, with the Golden Visa program proving the most attractive. Millennials are demonstrating the greatest interest in such programs.
The lifestyles of wealthy households are undergoing significant transformations, reflecting new priorities and opportunities. There is a trend toward renting before buying, allowing for greater flexibility in choosing a home and assessing it over the long term. Relocations in midlife are becoming more frequent, motivated by a desire to improve education, career advancement, or overall quality of life. The rise of remote work plays a particularly important role: 63% of high-net-worth individuals (HNWIs) reported working remotely, with the largest share of respondents in the US, UK, and Belgium. Consequently, digital infrastructure is becoming a key factor when choosing a place to live, as 71% of respondents consider the availability of ultra-fast broadband internet access critical.
Macroeconomic conditions in Europe are also contributing to the region's growing appeal for wealthy investors and residents. A significant decline in inflation is having a positive impact on real household incomes, and the European Central Bank's eight interest rate cuts have significantly reduced debt servicing costs compared to the US and UK. This creates a favorable environment for investment in real estate and other assets. GDP growth forecasts for countries such as Spain, Portugal, Ireland, and Greece make them stand out among the European continent. The Iberian Peninsula, in particular, is demonstrating outpacing growth in property values and transaction volumes, making it a particularly attractive destination.
As Kate Everett-Allen, Head of European Residential Research at Knight Frank, notes, "The wealthy have always had opportunities, but never have they realized them with such urgency or to such a large extent." These observed trends point to more than just a demographic shift. This is evidence of a fundamental shift in the global wealth landscape, where mobility, quality of life, and access to technology are becoming key drivers of decision-making for wealthy individuals.