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Top Real Estate Investment Areas in Carmel

Scherling Properties June 9, 2025


Carmel, Calif., also known as Carmel-by-the-Sea, is a charming coastal town nestled along the Monterey Peninsula. Known for its breathtaking ocean views, storybook cottages, and a world-class arts scene, Carmel has built a reputation as one of California’s most sought-after destinations. The town’s architecture blends classic cottages, modern homes, and elegant estates, all woven together in a landscape of rugged coastline, cypress trees, and pristine beaches. Walking along Ocean Avenue or Scenic Road reveals the town’s charm, with upscale boutiques, galleries, and restaurants creating an inviting atmosphere for residents and visitors alike.

Real estate in Carmel holds a distinct appeal for investors. The best places to invest in Carmel offer a range of property types, from cozy cottages ideal for short-term rentals to sprawling oceanfront estates with incredible views. Understanding the unique characteristics of Carmel’s neighborhoods can help investors make informed decisions and find opportunities that align with their real estate goals.

Golden Rectangle

The Golden Rectangle is a central area in Carmel-by-the-Sea, bordered by Ocean Avenue, Scenic Road, and Santa Lucia Avenue. This neighborhood is characterized by its proximity to the beach and downtown, making it a desirable location for vacation rentals and second homes. Properties in the Golden Rectangle often feature unique architectural styles and are situated on smaller lots, preserving the area's village-like charm. The demand for homes in this area remains high due to its prime location and the lifestyle it offers.

Carmel Point

Carmel Point is located just south of the Golden Rectangle and offers a quieter residential setting. Many homes here have ocean views and are within walking distance to Carmel River State Beach and Carmel Beach. The neighborhood features a mix of architectural styles, including traditional cottages and modern designs. Its appeal lies in scenic beauty and tranquility, making it a desirable area for long-term investments.

Hatton Fields

Hatton Fields is situated east of downtown Carmel and offers larger lot sizes than the central village areas. This neighborhood provides a more suburban feel while still being close to the amenities of Carmel-by-the-Sea. The area is characterized by spacious homes and mature landscaping. Investors may find opportunities in properties that can accommodate renovations or expansions, catering to buyers seeking more space.

Carmel Woods

Located north of downtown, Carmel Woods is a hillside neighborhood offering panoramic ocean views and forested areas. The winding roads and elevation provide a sense of seclusion while maintaining accessibility to the town center. Properties here vary in size and style, presenting diverse investment options. The unique topography and vistas make Carmel Woods appealing to those looking for distinctive homes with character.

Carmel Highlands

Carmel Highlands is a coastal community situated south of Carmel-by-the-Sea along Highway 1. Known for its dramatic ocean views and rugged coastline, the area attracts buyers seeking luxury properties with a sense of privacy. Homes in Carmel Highlands often feature large lots and custom designs. The natural beauty and exclusivity of the area contribute to its status as one of the best places to invest in Carmel.

Mission Fields

Mission Fields is a neighborhood located southeast of downtown Carmel, near the Carmel Mission Basilica. The area offers a mix of single-family homes and is known for its relatively level terrain and accessibility. This neighborhood appeals to investors looking for properties suitable for families or those seeking a more traditional residential setting. The proximity to schools and local amenities adds to its attractiveness.

Carmel Valley

Extending inland from Carmel-by-the-Sea, Carmel Valley offers a different climate and landscape, characterized by rolling hills and vineyards. The area is popular among those seeking a rural atmosphere with access to wineries and outdoor activities. Real estate in Carmel Valley includes a range of properties, from ranch-style homes to estates. The diversity and potential for agritourism ventures make it one of the best places to invest in Carmel.

High Meadows

High Meadows is a residential area above Carmel-by-the-Sea, offering views of the valley and the Santa Lucia Mountains. The neighborhood features single-family homes and townhouses, often with spacious layouts. The elevated position provides a sense of openness and tranquility. Investors may find opportunities in properties that cater to buyers looking for a balance between proximity to town and a more serene environment.

Great Reasons to Work With Scherling Properties

When buying a home in Carmel-by-the-Sea or the surrounding Monterey Peninsula, working with a local expert makes all the difference. Stacey Scherling of Scherling Properties brings deep personal and professional roots to the community. A proud resident of Pebble Beach, Stacey knows this area inside and out. Stacey’s ties to Stevenson School and involvement in local organizations reflect an ongoing commitment to the people and places that define the Monterey Peninsula.

Clients appreciate Stacey’s honest communication, tireless effort, and grounded understanding of the market. Stacey brings a thoughtful, hands-on approach to each transaction, ensuring buyers and sellers feel supported and well-informed at every step.

Considering a move to Carmel-by-the-Sea, Pebble Beach, or anywhere along the central coast? Contact Scherling Properties to help you turn your real estate goals into reality in one of California’s most remarkable places to call home.



Work With Stacey

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact Stacey today.