Secondary Cities and Resorts - The Next Wave in Luxury Real Estate Finance

Luxury real estate finance is shifting, fast. A new conversation is happening: the best opportunities in 2025 aren’t in the obvious places anymore. High-net-worth and ultra-high-net-worth individuals who already own hold prime assets in London, New York or Paris are now quietly redeploying capital into secondary cities and resort destinations.

While those key prime markets remain strong, emerging locations such as Porto, Nice and Aspen are gaining traction for their privacy, lifestyle appeal, and attractive pricing. This trend marks the next wave in luxury real estate finance, offering sophisticated investors new avenues to diversify, optimise capital, and access bespoke financing solutions.

This article explores why secondary cities and resort towns are reshaping luxury real estate finance, how investors can capitalise investing in these markets, and why tailored finance strategies are critical to maximising value in this evolving landscape.

Why Secondary Cities and Resort Towns Are Capturing Attention

Privacy and Exclusivity

HNW buyers increasingly value private wealth management through real estate. Busy primary cities often lack the discretion many buyers’ desires. Secondary and resort locations provide quieter, more private environments, ideal for those seeking a luxurious yet discreet lifestyle.

Attractive Price Arbitrage

Primary markets have seen record price surges, limiting value. Secondary cities and resorts offer more competitive pricing while maintaining strong growth potential, allowing investors to secure premium properties at a relative discount.

Wellness-Driven Luxury Property Finance and Longevity Planning

Wellness is now a hard financial driver, not lifestyle fluff. Natural beauty, wellness amenities, and cultural richness make these locations highly appealing for luxury buyers who prioritise quality of life alongside investment. Those homes also outperform on liquidity, rental yield and exit desirability. In other words, lifestyle alpha becomes capital alpha.

Cross-Border Luxury Real Estate Finance for Portfolio Diversification and Downside Protection

Secondary cities and resort destinations strengthen wealth architecture. By blending jurisdictions, currencies and regulatory regimes, buyers use cross-border structured finance to hedge volatility and preserve value, while retaining optionality in their real estate balance sheet.

How Luxury Real Estate Finance Is Evolving to Support This Shift

Competitive Loan-to-Value Ratios

Sophisticated investors now benefit from generous loan-to-value (LTV) ratios on trophy assets in secondary and resort markets. These competitive LTVs often approach those seen in established prime cities, allowing investors to optimise leverage without sacrificing prudent risk management, releasing greater capital efficiency for portfolio expansion.

Bespoke Financing Terms Tailored to the Nuanced Needs of Luxury Property Investors

Specialist lenders are crafting customised luxury real estate finance solutions that go beyond standard mortgages. Flexible repayment schedules, interest rates pegged to global benchmark indices, and structures accommodating multiple asset classes (including securities and alternative collateral) enable investors to access bespoke financing packages designed specifically for high-net-worth portfolios.

Key Secondary Cities and Resort Towns to Watch in 2025

According to Knight Frank’s Wealth Report 2025, international buyers are actively pursuing “top-tier destinations for luxury retreats,” highlighting the growing allure of places like Porto, Nice, and Lake Como in Europe, prized for their coastal charm, vibrant culture, and expanding luxury scenes.

In the United States, renowned resort hubs such as Aspen, Charleston, and Palm Beach continue to captivate investors with their unmatched privacy, exclusivity, and world-class amenities. These markets benefit from sustained demand and premium pricing, underscoring their status as perennial favourites among high-net-worth buyers.

Knight Frank notes that many luxury markets, including these resort hotspots, “recorded positive annual price growth,” reflecting both increasing investor interest and the region’s natural beauty combined with investor-friendly regulations.

These cities represent the new frontier of luxury real estate finance in 2025, offering sophisticated investors compelling opportunities for diversification, capital optimisation, and bespoke financing strategies.

How Enness Global Supports Luxury Real Estate Finance in Emerging Markets

Enness Global specialises in securing high-value luxury real estate finance for high-net-worth individuals, property developers, and investors navigating the complexities of secondary cities and exclusive resort towns. Whether you’re acquiring a multi-million-pound coastal villa or refinancing a luxury portfolio spread across emerging hotspots, Enness offers bespoke financing solutions tailored to your unique needs.

With access to a large network of trusted lenders across the UK and international markets, Enness brokers deliver customised strategies for:

• International Mortgages - Flexible, cross-border lending solutions designed for UHNWIs buying luxury properties abroad, including secondary cities like Porto and resort destinations such as Bali or Aspen.
• Property Portfolio Finance - Competitive and flexible funding options to expand or optimise diverse luxury real estate holdings, balancing risk across multiple geographies.
• Property Development and Hotel Finance - From renovating exclusive resorts to funding new builds in emerging luxury markets, Enness negotiates terms that meet tight deadlines and complex project requirements.

Backed by a deep understanding of the luxury property sector, Enness’ expert brokers guide clients through every stage, structuring strategic loans, managing compliance, and optimising capital deployment to maximise returns.

Case Study: High-Value Mortgage for US Nationals Purchasing Luxury Property in Italy

As an example of what can be achieved in those new hotspots, Enness Global successfully arranged a bespoke high-value mortgage for ultra-high-net-worth US nationals acquiring a super-prime property in Italy valued over €4 million. Initially considering a cash purchase, the clients, successful entrepreneurs with over €2 million in assets under management, opted for a strategic luxury real estate finance solution to preserve liquidity and optimise their international capital deployment.

Navigating the complexities of cross-border lending, especially for US-domiciled clients, Enness introduced a global private bank capable of providing compliant, AUM-backed mortgage financing via its Italian office. This structure combined local regulatory compliance with offshore asset booking, enabling tax efficiency and future flexibility within the clients’ broader wealth management framework.

By leveraging a 65% loan-to-value ratio with a 5-year interest-only rolling facility tied to Euribor, the clients secured competitive terms aligned with their long-term international diversification and wealth planning goals. This transaction exemplifies how sophisticated international mortgage solutions enable access to exclusive luxury real estate markets with financial agility and confidence.

Why UHNWIs Need Bespoke Finance Solutions in Secondary and Resort Markets

Capital Preservation and Portfolio Integrity Through Tailored Luxury Real Estate Finance

Ultra-high-net-worth individuals prioritise capital preservation by leveraging bespoke financing structures that prevent forced asset sales and maintain portfolio diversification across geographies and asset classes. Custom loan solutions in secondary and resort markets enable investors to retain exposure to high-growth luxury properties without compromising overall wealth integrity.

Seizing Market Opportunities with Agile Cross-Border Mortgage Access

In fast-evolving luxury real estate markets, speed and flexibility in financing are essential. Tailored mortgage packages empower UHNWIs to act swiftly on undervalued secondary city or resort properties, capturing premium returns ahead of competitors. Access to flexible credit lines and competitive loan-to-value ratios is critical for seizing these lucrative investment windows.

Optimising Tax Efficiency and Estate Planning via Bespoke Lending Solutions

Sophisticated international real estate finance integrates well-structured lending arrangements that support efficient tax planning and cross-border regulatory compliance. These bespoke loans facilitate estate preservation and inheritance optimisation, aligning with UHNWIs’ long-term wealth management goals in multiple jurisdictions.

Conclusion: Embrace the Next Wave of Luxury Real Estate Finance

Secondary cities and resort towns represent a strategic frontier for UHNWIs seeking exclusivity, lifestyle, and financial optimisation. Leveraging specialised luxury real estate finance solutions empowers investors to capitalise on these emerging markets without sacrificing portfolio integrity or liquidity.

Contact Enness Global today to explore bespoke financing options tailored to your luxury real estate ambitions in secondary and resort locations.

FAQs: Luxury Real Estate Finance in Secondary Cities and Resort Towns

What makes secondary cities and resort towns attractive for luxury real estate finance?

Locations offer UHNW investors greater privacy, exclusivity, lifestyle benefits, and better value compared to primary hubs. They also feature increasingly competitive and bespoke financing options tailored to luxury property buyers.

How do loan terms typically differ for properties in secondary and resort markets?
Loan terms are often flexible and customised, with loan-to-value (LTV) ratios and interest rates adjusted based on the property’s quality, location, and borrower profile. Specialist lenders provide tailored repayment schedules to optimise capital deployment. Enness can help you gain access to specialist lenders that offer those types of terms.

Are there risks involved in financing luxury properties outside primary real estate hubs?
Yes, including valuation volatility, lower liquidity, and differing regulatory environments. Experienced international lenders mitigate these risks by providing compliant, market-aware financing solutions.

Can ultra-high-net-worth individuals access cross-border mortgages for luxury properties in these markets?
Yes, many lenders specialise in cross-border luxury real estate finance, offering bespoke mortgage solutions that accommodate complex asset portfolios, multiple jurisdictions, and tax-efficient structures.

What role does loan-to-value (LTV) ratio play in luxury real estate finance for secondary markets?
Competitive LTVs in these markets typically range from 60% to 70%, reflecting asset quality and desirability. This allows investors to leverage capital effectively without overextending financially.

How important is local market knowledge in securing finance for luxury properties in resort towns?
Deep local expertise is crucial. Specialist lenders and brokers navigate regulatory nuances, valuation standards, and financing options, ensuring bespoke, compliant lending tailored to unique market dynamics.