Cities Across the World Where Luxury Developments Are Booming

Luxury is moving beyond the mainstream cities where upscale designers sit on avenues, creating a shopper's haven for locals and tourists. Five global destinations are emerging as new chapters in the high-end residential luxury market, according to a new report.

U.K.-based global real estate consultants Knight Frank analyzed the growth of the global luxury residential sector and generated the "new frontiers" list—up-and-coming hot spots for luxury development, often sporting well-known luxury brand names like The Ritz-Carlton or W Hotels.

"Our Trends section distills the big stories shaping the market: longevity as a key requirement; private clubs and community as engines of retention; restaurants and bars at the sharp edge of brand identity; and the role of storytelling in design," says the report.

In addition to its Global Branded Residence Survey, the firm completed 46 interviews with key developers and brands to find where the luxury market is going.

The highlighted up-and-coming hot spots include Texas; Hudson Valley, NY; Fiji; Comporta, Portugal; and Sardinia, Italy.

"It is clear that all these locations are seeing an uptick in new scheme activity," Liam Bailey, head of global research, tells Realtor.com®. "Our round up of up-and-coming markets focused on those markets where the market is moving from embryonic to growth mode over the next five years.

"These are markets the industry is saying they are committed expanding into. We also believe these markets will see a concomitant growth in luxury infrastructure—so new restaurants, bars, members clubs, etc.," he says.

While the global luxury residential markets continue to be dominated by the usual places like Florida (especially Miami), Dubai, and Seoul—other destinations are hot on their heels: Cities like Manila, the Philippine capital; Los Angeles and San Francisco, CA; Christchurch, New Zealand; Australia’s Gold Coast; and Shanghai, all of which are attracting significant attention from developers seeking to capitalize on higher prices.

Other cities, such as New York, Hong Kong, and London are on a downward swing, suffering not only from tapped-out prices but a lack of space.

Then there are these five new frontiers: markets that don't necessarily spring to mind when you hear "luxury developments," but should be the wave of the luxury residential future.

Texas: Goodbye sprawling mansions, hello high-rises

This Southern state has long been the stomping grounds of the wealthy—oil barons, cattle ranchers—but it is lately becoming a boom state for the finance and tech industries. And people in those industries want a different lifestyle—luxurious but low-maintenance.

"Texas has long been associated with sprawling mansions rather than high-rise luxury, but that balance is starting to shift," says the report.

Luxury condos and residential projects from the likes of Four Seasons, The Ritz-Carlton, and St. Regis are springing up in urban zones like Houston and Dallas.

"Wealth is abundant in both cities, but choice has historically been limited," says the report. "Developers are beginning to test high-end communal living, backed by strong local demand and in-migration from other U.S. states."

Texas' affordability, relative to other states such as California and New York—and its underdeveloped condo market—make the Lone Star state a compelling growth story.

In Dallas, prestigious high-rise residences include Blue Ciel, The Museum Tower, The Stoneleigh, Hall Arts, Ritz Carlton Residences, Azure, and W Residences.

"Dallas has outgrown the old TV stereotype of big homes and cowboy hats," local luxe agent Harrison Polsky, of Douglas Elliman, tells Realtor.com. "What people don’t always realize is how sophisticated the market has become, we’re seeing branded residences; wellness-focused design; and sustainable, architecturally distinct builds.

"For someone relocating from New York or California, it feels like luxury on their own terms, with more value for their dollar."

He points to suburbs such as Celina, Prosper, and Argyle; and neighborhoods Turtle Creek, Knox Street, and Uptown as the new hot zones for luxury.

Top condos come with a host of amenities, and you'll pay for them. Monthly HOA fees can be steep, running into the thousands.

Hudson Valley, NY: 'Curated' living

Close proximity to New York City has always meant that the wealthy migrated north, where there was more space to build mansions—alongside more nature and less crime, crowds, and traffic.

But lately, the Hudson Valley has been booming with new developments, many of which are concentrated along the Hudson River—and can charge a premium for those spectacular waterfront views.

"The Hudson Valley has always been on the radar of New Yorkers, but we have seen a tremendous uptick in interest from other markets, particularly the west coast and Europe," Jason Karadus, of Corcoran Country Living, tells Realtor.com.

"The quaintness and small-town atmosphere, coupled a sophistication not common in other rural areas— with regards to the arts, dining, culture and health and wellness—appeals to buyers moving from other luxury markets.

"Nature is the new luxury," he says. "If you took aerial shots of many of the towns, they wouldn’t look much different than they did a century ago."

Small towns such as Beacon, New Paltz, and Rhinebeck have long been popular with the city set, but less trendy areas like Sleepy Hollow, Amenia, and Red Hook are now exploding with high-end, amenity-laden developments such as Solo Ridge and Edge-on-Hudson.

Probably the most talked-about forthcoming development is the One&Only residential community by Kerzner International, which also owns the Atlantis Brand, slated to open on the 21-acre Culinary Institute of America campus in Hyde Park in 2028.

For sale will be 61 private homes, stand-alone cabins, guest rooms, and suites offering full-service living featuring "nature, gastronomy and wellbeing," and curated experiences—think horseback riding and immersive master classes—for the well-heeled buyer who happens to be a foodie.

"Enjoy intuitive service, seasonal culinary experiences shaped by the nearby Culinary Institute of America, and wellness enhanced by the region's first Longevity Hub by Clinique La Prairie," promises the website.

Other well-known brands that have come to the valley include Auberge, Mirbeau, Six Senses, and Soho House.

Fiji: Global brands come to the South Pacific

This secluded archipelago of islands in the South Pacific is at the forefront of the new luxury developments.

With clear-blue waters, white-sand beaches, and untouched nature, it's a paradise for certain brands eager to blend into the environs or tout sustainability.

"Younger high net worth individuals increasingly prefer to surf off Fiji’s reefs from their own yachts rather than cruise the Med," says the report. "For them, Fiji represents freedom, authenticity and a taste of real seclusion."

This month, Kerzner announced plans for a One&Only resort homes on 127 acres along the shores of Nacula Island in Western Fiji, opening in 2029.

"Imagine a tropical island paradise where coconut palms and sugar-white sands meet crystal-clear turquoise sea," beckons the website.

But the pristinely wild island is also 30 minutes by seaplane to the capital of Nadi.

Other luxe residential developments in Fiji include the five-star hotel named Six Senses in Vunabaka, a private pristine 120-acre enclave on Malolo Island.

The pavilion-style residences come with access to a marina and the five-star boutique hotel, and range between two and five bedrooms on 1/3- to 2-acre lots.

Comporta, Portugal: The next Ibiza?

The small coastal country has become the No. 1 country where Americans long to relocate, thanks to its beatific coastline, warm climate, rich history, vibrant cities, and welcoming locals.

But it has also become so popular that the country recently ended its real estate-linked or capital transfer golden visas.

That hasn't stopped Portugal from becoming a boomtown for luxe development.

"Portugal’s Comporta is fast becoming shorthand for so-called 'barefoot luxury," says Knight Frank's equity partner, Alasdair Pritchard, in the report.

"Comporta has the potential to replicate the formula that transformed Ibiza and Sardinia," he predicts. "It offers proximity to Lisbon, long stretches of pristine beach and a sense of privacy increasingly sought by Europe's wealthy families."

While the Algarve remains the French Riviera of Portugal, developers are looking two hours north to Comporta.

"The combination of branding, wellness amenities and relative affordability makes Comporta one of Europe’s most credible frontier markets," he says.

It's no surprise then that in March, Six Senses announced its plans for the area, which will include 58 branded residences, ranging from two- to five-bedroom villas and apartments, slated to open in 2028.

The website touts the laid-back lifestyle and peaceful seclusion of the area: "With the only traffic being the pootle of a beat-up Mini Moke, horse rider, or bicycle ridden barefoot to the market, good days can quickly melt into good weeks," it says.

Sardinia, Italy: New neighborhoods

While Sardinia's Costa Smeralda has always been a magnet for the super-rich, the market is evolving, says the report.

"Surging prices in Porto Cervo and Romazzino are pushing buyers to explore neighboring enclaves like Porto Rafael, Portisco and Porto Pollo," it notes.

"Sardinia illustrates how wealth is branching beyond established luxury bays, redrawing the island’s residential map in the process."

These areas offer the same crystalline waters and proximity to yachting hot spots but with greater privacy and value.

Seven Senses Sardinia (not related to Six Senses) offers private villas in a gated community in Porto Cervo boasting a golf course, pool, and an outdoor communal kitchen.

The community was developed by Immobilsarda, an affiliate of Christie's International Real Estate.

Amenities include access to five-star services at the nearby Hotel Cala di Volpe, including "private international concerts, panoramic aperitifs, and glamorous dinners."

Properties in the area regularly hit the market for $25 million or more.

Overlooking Tavolara Island, global lifestyle company JHSF, the developer behind Brazil's well-known Fasano brand, is building Fasano Hotel, slated for open 2028. Already open on the same property is a branded beach club.

The hotel will have private villas and estates in varying sizes for sale with panoramic views, a marina integrated into a curated village with boutiques and restaurants, and a spa, sports facilities, and serviced beaches.