International luxury real estate trends for second homes

Luxury real estate trends: Paris & London 2025

Luxury real estate trends in Paris and London point to a year of selective growth, more choice at the top end, and faster deal timelines. For a second home, that translates to better access to prime addresses and turnkey quality in both cities. Globally, prime prices rose 2.8% year over year in Q1 2025, underscoring steady demand for high-caliber homes in world capitals.

Pacaso makes ownership in these prestigious markets more attainable through fractional ownership. Instead of buying an entire property, buyers purchase a share of a luxury home in Paris or London. This approach lowers costs while preserving the benefits of equity, appreciation, and personal use, making world-class real estate more accessible to second-home buyers.

Paris in 2025 market signals buyers should watch

Paris rebounded decisively to start 2025. Lower mortgage rates below 3% and stable pricing have doubled the pool of active buyers and shortened timelines, especially for renovated, move-in-ready residences in prime districts. That momentum is also evident on the Left Bank, where Saint-Germain combines classic architecture with updated comforts, a profile exemplified by Beaux Arts.

Saint-Germain-des-Prs exemplifies prime Paris demand in 2025, with classic architecture and updated comforts that appeal to buyers seeking turnkey second homes.

Set steps from galleries and the Seine, Beaux Arts showcases the Paris formula working now: heritage details, modern systems, and walkable access to culture in a blue-chip arrondissement.

Everyday Paris life in vibrant squares highlights the lifestyle draw behind the city’s prime districts for second home buyers.

London in 2025 pricing, policy and prime demand

London is set for modest 2025 gains of about 2%, supported by strong cash-buyer demand and improving choice at the top end. Across luxury segments, inventory is at a two-year high, with single-family listings up 40.4% and multifamily up 42.6% year over year. Price performance is bifurcated: the best-designed, turnkey listings still command premiums, while buyers have more room to negotiate on homes needing updates.

Mayfair’s prime positioning and turnkey finishes reflect what London 2025 buyers prioritize: walkability, privacy, and ready-to-enjoy design.

For everyday access to Hyde Park, Bond Street and private clubs, Queen Street Penthouse offers a bright, upper-floor retreat in the heart of Mayfair, with multiple terraces and a refined entertaining layout.

Key luxury real estate trends shaping buyer choices

Turnkey quality in prime locations: the No-Compromise buyer will pay for move-in-ready homes, while the Smart buyer weighs trade-offs on location or light remodeling.
Energy-efficient upgrades command a premium, with reported sale uplifts of roughly 3% to 5% for homes featuring efficiency-oriented improvements.
Experiential living: proximity to culture, dining, riverfronts and parks is a key filter, often prioritized above square footage.
Digital-first shopping: more firms are using immersive tools to preview top listings, accelerating decision-making on verified prime addresses.
Global resilience: despite crosswinds, prime city prices continue to post positive annual gains.

Paris vs London lifestyle essentials for a second home

Paris offers gallery hopping in Saint-Germain, shopping on the Left Bank, and dining that anchors the ritual of everyday life. London brings West End theatre, green escapes like Hyde Park, and a global dining scene within minutes of Mayfair and Chelsea. For buyers, both markets deliver culture on your doorstep and seamless access to international airports.

London’s icons signal proximity to culture, parks and dining, reinforcing the draw of core postcodes for second home owners.

How co-ownership supports 2025 buyer behavior

Today’s buyers value time and certainty. Pacaso co-ownership provides access to high-demand neighborhoods with professional management and streamlined scheduling, so you spend your time enjoying the city rather than handling home logistics. In Paris, that can look like a classic Left Bank address steps from museums, cafes and the Seine, such as Rue du Bac. Curious how the model works in detail? Start with What is co-ownership property.

A classic Left Bank address with modern comforts, ideal for buyers prioritizing walkable access to museums, cafés and the Seine.

What it means for your next move

Here is the bottom line for 2025. Paris is accelerating, with faster transactions in top districts and a broader base of active buyers. London should post around 2% annual growth with more inventory at the high end, giving shoppers greater choice. With global prime prices trending higher and considering these luxury real estate trends, selecting a property that is truly turnkey and well-located remains the clearest path to lasting enjoyment.Ready to explore prime addresses in two world capitals? Browse Pacaso listings in Paris and London, and use our Second home calculator to align your goals with the right co-ownership opportunity.Note: This article was generated with the help of an AI agent and reviewed by our editorial team to ensure accuracy and clarity.