Whether it’s an exclusive beach hideaway that offers space, serenity and a break from the crowds or a bustling coastal town dotted with cafés, designer stores, water sport facilities and other amenities, oceanside destinations hold undeniable allure – attracting holidaymakers and prime property investors.
According to the Douglas Elliman and Knight Frank Wealth Report, an “increasingly nomadic group of high-net-worth individuals (HNWIs)” appears to respond positively to incentives to move, be it for tax reasons, safety or a lifestyle change. In fact, the report further cited “investment” and “lifestyle” as the two highest-ranking motivations for HNWIs’ future home purchases.
And beachside prime properties tend to tick both of those boxes. Looking at the Knight Frank Waterfront Homes Report, and examining the average across eight global markets, properties that are set in proximity to water, including oceans, estuaries, rivers and lakes, are typically worth 45% more than those that are non-waterfront properties.
Compared with other waterfront homes, those that are near to a beach lead the way, with an average premium uplift of 76%, followed by homes located close to harbours with a 61% price premium, while coastal properties also have a premium uplift of 36%, as per the same report.
Aside from the visual and lifestyle appeal that oceanside properties tend to offer, there is often an element of scarcity attached to prime waterfront properties. This may drive up the desirability of these high-value homes and could bolster the return on investment, which is likely an appealing prospect to HNWIs investing in either a primary or secondary high-value property.
To isolate some of the most esteemed prime property locations around the world with waterfront appeal, we’ve combined research shared by leading estate agencies and have listed our selection of 10 spectacular beaches, including a few of our own favourites, that edge some of these desirable residential and property investment destinations.
1. Bondi Beach, Sydney, Australia
Characterised by golden sands, azure waters and its vibrant atmosphere, Bondi Beach is world renowned and attracts visitors from around the globe, especially for its surf culture. This Australian location also happens to be the most Instagrammed spot on earth.
Sydney’s investor appeal: As Knight Frank indicates, the New South Wales capital is among the global cities that has retained a “very strong following, with prime and super-prime markets outperforming”. Baron & Cabot cites Sydney as one of the best real estate markets globally.
2. En Trenc, Mallorca, Balearic Islands (Spain)
One of the most well-known beaches on Mallorca, Es Trenc is recognised by its turquoise waters that resemble the Caribbean Sea. Although Es Trenc remains relatively untouched, nearby areas such as Campos and Colonia de Sant Jordi offer potential prime property investment opportunities.
Mallorca’s investment appeal: Mallorca ranks fifth in the Savills Prime Residential Index report on second-home locations around the world. The report also states that Mallorca offers desirable leisure and lifestyle amenities, top-end hospitality and global reach.
3. Lookout Beach, Plettenberg Bay, South Africa
Set along South Africa’s Garden Route, Plettenberg Bay is an award-winning destination. Among other beaches, Lookout Beach is a Blue Flag status beach that offers a pristine setting for relaxation, beach activity and water sports.
Plettenberg Bay investor appeal: According to Savills, Plettenberg Bay’s prime countryside properties are set at comparatively lower price points, in reference to other prime residential prices worldwide. The South African coastal town appears on Savills’ “Top 60” prime residential index for second homes around the world.
4. Plage de la Garoupe, Côte d’ Azur, France
Since the Côte d’Azur first became popular among English visitors in the 19th century when aristocrats began wintering in the region, it has continued to draw HNWIs and celebrities to its shores. Plage de la Garoupe has been cited as “one of the prettiest beaches on this stretch of coast” and holds a fascinating history, having hosted the likes of Hemingway, Fitzgerald and Picasso.
Côte d’Azur’s investor appeal: Savills recently listed the Côte d’Azur as the leading prime second-home location in the world, due to its appealing offerings across all of its ranking
categories, namely, prime residential prices, leisure and lifestyle offerings, hospitality, connectivity and global reach.
5. Playa de la Fontanilla, Marbella, Spain
Playa de la Fontanilla, characterised by panoramic views of the Mediterranean and breathtaking sunsets, is one of Marbella’s most central beaches. Its location makes it a popular choice among locals and visitors, offering an array of beachside amenities and water sport activities.
Marbella’s investor appeal: Knight Frank notes Marbella’s year-round appeal and other sources, like Callum Swan Realty, point to the city’s economic resilience and significant international demand.
6. Praia da Marinha, The Algarve, Portugal
Recognised as one of the most beautiful beaches in the world, Praia de Marinha is set near to Lagoa, in The Algarve district, and is framed by steep cliffs, including a famous M-shaped rock, that create a spectacular setting.
The Algarve’s investors appeal: Portugal has been noted by Forbes Global Properties as a hotspot for high-net-worth buyers. The Algarve region, in particular, is referenced as showing noteworthy growth, with property values in one resort having escalated by more than 28% since 2020 and showing signs of another 19% boost by 2025.
7. Sandbanks Beach, Poole, United Kingdom
Sandbanks Beach is an iconic destination, bordering one of the most sought-after residential areas in the world. The beach has maintained Blue Flag status for the last 35 years, more than any other beach in the United Kingdom, and teems with activities.
Poole’s investment appeal: This area is considered one of the most esteemed coastal areas in the United Kingdom, with some of the highest valued homes in the country located on its shores. According to Savills, the region’s strong long-term fundamentals indicate that prices are expected to continue rising from the second half of 2024, with prime property anticipated to showcase the most resilience.
8. San Vito Lo Capo, Sicily, Italy
San Vito Lo Capo, situated in northwest Sicily, is often voted one of the most beautiful beaches in Italy. It is renowned for its turquoise waters and its striking mountain backdrop.
Sicily’s investor appeal: The Mediterranean island’s lower capital values are a magnet for strong demand, drawing significant interest from buyers, according to Knight Frank.
9. Seven Mile Beach, Grand Cayman, Cayman Island
Voted among the best beaches in the world, Seven Mile Beach is a marvellous destination in the Cayman Islands, marked by an expansive stretch of coral-sand beach and turquoise waters.
Cayman Islands’ investor appeal: A leading international financial centre, with no direct taxes, the Cayman Islands boast a stable economy and have gained popularity for offshore banking, investment funds and other financial services, according to Sotheby’s Realty. This has driven up the demand for luxury properties in the territory, especially in Grand Cayman.
10. South Beach, Florida, USA
South Beach, with its Art Deco architecture, is arguably the most symbolic representation of Greater Miami & Miami Beach. This destination features aquamarine waters and a vibrant atmosphere, frequented by trendsetters and celebrities.
Florida’s investment appeal: As shared by Knight Frank, Florida’s notable waterfront locations, favourable tax regime, and retirement appeal continue to drive strong sales.
What should investors consider when purchasing a high-value property in an international destination?
Whether a beachside condo or a coastal villa, or any other international prime property development, for that matter, we advise that investors work with a team of professionals to conduct thorough market research and properly evaluate the location.
Among other factors to consider, beachside and coastal regions may be particularly impacted by tourism trends, the climate, natural elements and environmental regulations.
It’s also important for investors to understand any currency risks, as well as legal and regulatory requirements. A long-term investment strategy, taking market fluctuations and uncertainties into account, should also be compiled to set expectations and to potentially optimise the return on investment.
Is international bridging a good solution for financing a high-value property?
Bridging loans are typically a versatile option for HNWIs and international property investors as bridging finance generally offers convenience, flexibility and speed compared with standard mortgages. That’s because bridging loans usually have less stringent eligibility criteria than mortgages and can therefore be approved faster and with less “red tape” associated with traditional lending.
At Tenn, our clients use international bridging finance to complete international property purchases quickly and to release equity from non-UK property. We can specialise in multi-jurisdictional loans and bridging finance when the loan capital won’t be deployed in the same country as the asset.
Find out more about why Tenn is the best choice for bridging finance
Tenn is uniquely set up to offer offshore bridging loans for high-value property transactions. We are experts in international bridging and have offered high-value loans to numerous clients in the UK and various overseas territories.