AS U.S. DOLLAR FLUCTUATES, AMERICANS TEMPORARILY PULL BACK FROM CERTAIN MARKETS
IN SOME SECOND-HOME DESTINATIONS, OPPORTUNITIES HAVE OPENED UP FOR LOCAL
AS U.S. DOLLAR FLUCTUATES, AMERICANS TEMPORARILY PULL BACK FROM CERTAIN MARKETS
IN SOME SECOND-HOME DESTINATIONS, OPPORTUNITIES HAVE OPENED UP FOR LOCAL
In the first half of 2025, the U.S. dollar fell 10.7%—its biggest loss in over 50 years. The currency’s reversal of fate has sent ripples through luxury real estate markets worldwide. (As of Sept. 1, the dollar has fallen 9.7% since the beginning of the year.)
Agents say that Americans haven’t retreated from international property purchases entirely, though. Many have found ways to get around the volatility—through peso purchases in Mexico, leveraging negotiating power in Portugal’s calmer market, or embracing crypto payment methods in Panama, for example. The markets that continue to attract U.S. buyers all have something special—compelling lifestyle benefits, regulatory advantages, or significant cost savings—which transcend the short-term exchange-rate concerns. And while currency fluctuations can complicate the decision to buy, they haven’t fundamentally changed the underlying desire for international real estate among high-net-worth Americans.
Has the fluctuating value of the U.S. dollar affected your market?
THE AGENCY'S GLOBAL SURVEY
YES
NO
SPAIN, PORTUGAL SEE UNEVEN RESPONSE TO FLUCTUATIONS
Portugal’s luxury market has proven remarkably resilient in the face of currency challenges, said Ayres Neto, Managing Partner of The Agency Portugal.
Prices in Portugal’s luxury segment have held strong; in Lisbon, they're projected to rise another 4.5% by the end of 2025, he says. “But the weaker dollar has made euro-denominated properties feel more expensive for American buyers.”
Have you seen a decrease in foreign buyers in your market in 2025?
THE AGENCY'S GLOBAL SURVEY
YES
NO
NO CHANGE
FOREIGN OWNERSHIP DECREASES 50% AFTER CANADA’S RESIDENTIAL PURCHASE BAN, BUT PRICES REMAIN LARGELY FLAT
Though the U.S. dollar exchange rate may make Canada look appealingly inexpensive to global investors, they won’t be able to buy in the country’s urban centers due to a ban on foreign investment set to run through 2027.
MEXICO: PESO PURCHASES AND CROSS-BORDER COMMUTING
Mexico’s Baja California region has undergone a notable demographic shift in recent years. “It used to be Mexican nationals living in Baja and working in the U.S., and now we are seeing more U.S. residents purchasing in Baja and commuting to the U.S. for work,” says Jeff Davidson, a Broker Associate with The Agency San Diego.
THE AFTERMATH OF THE GOLDEN VISA’S END
In 2023, several nations across Europe had wound down their “Golden Visa” programs, which had allowed foreigners to gain their residency via real estate investment. The end of the programs was meant to help calm hot housing markets around Portugal and Spain that had become too pricey for locals.
