Top 10 Overlooked Luxury Rental Property Destinations for High ROI: A Guide for Smart Investors

Investing in a luxury home as a rental property can be a smart move, especially if you choose the right location. However, with the luxury real estate market experiencing a slowdown this spring due to economic uncertainty, it's important to carefully consider your investment options. A recent study from Otherworld looked beyond the typical luxury vacation destinations to find overlooked markets where high-end homes still offer strong returns and long-term value. The study compared vacation cities across several factors, including median price of luxury properties, available homes for sale, annual rent, and occupancy rate. Here are the top 10 locations to invest in a luxury property for a high return on investment (ROI), ranked by the shortest to longest time it would take to pay back the initial investment:

• Median price of luxury properties: $638,500
• Annual rent: $54,000
• Rental occupancy rate: 47%
• Rental payback time for luxury homes: 12 years

Porto is a great investment option for those looking for a quick return on their investment. With a median price of luxury properties at $638,500 and an annual rent of $54,000, it's a relatively affordable option compared to other destinations on this list. The rental occupancy rate is also relatively high at 47%, making it a good choice for investors looking for consistent rental income.

2. Niseko, Japan

• Median price of luxury properties: $1,869,916
• Annual rent: $115,608
• Rental occupancy rate: 52%
• Rental payback time for luxury homes: 16 years

Niseko is a popular ski resort in Japan and is known for its stunning natural beauty and world-class skiing. While the median price of luxury properties is higher than some other options on this list, the annual rent of $115,608 and rental occupancy rate of 52% make it a good investment for those looking for long-term value. The rental payback time is 16 years, which is still relatively short compared to some other destinations.

3. Oslo, Norway

• Median price of luxury properties: $2,300,775
• Annual rent: $136,236
• Rental occupancy rate: 71%
• Rental payback time for luxury homes: 17 years

Oslo is a great investment option for those looking for a mix of affordability and long-term value. The median price of luxury properties is higher than some other destinations on this list, but the annual rent of $136,236 and rental occupancy rate of 71% make it a good choice for investors looking for consistent rental income over the long term. The rental payback time is 17 years, which is still within a reasonable range for many investors.