Top Real Estate Investment Areas in Southwest Harbor, ME

Southwest Harbor, Maine, is one of the hidden gems of Mount Desert Island. Known as the “Quiet Side” of Acadia, it offers a more peaceful, less commercialized alternative to Bar Harbor while still delivering breathtaking coastal beauty, vibrant community life, and access to Acadia National Park. For real estate investors, Southwest Harbor represents an enticing opportunity—whether you’re interested in vacation rentals, long-term properties, or personal retreats that will appreciate over time.

As a real estate expert serving the Acadia region, I’ve helped numerous clients discover lucrative investment opportunities in Southwest Harbor. This post highlights the top areas for real estate investment, breaking down what makes each neighborhood unique and why it could be the right fit for your goals.

Southwest Harbor’s waterfront is the crown jewel of the town. Properties along the harbor, especially near the bustling marina, are prime real estate for those looking to invest in vacation rentals or second homes. These homes command high prices but offer excellent returns during peak tourist seasons. Waterfront properties with private docks or mooring rights are especially valuable.

• Oceanfront Homes and Cottages – Charming, historic homes that can be renovated into luxury rentals.
  
  
• Vacation Rental Potential – Waterfront homes here see high occupancy rates during the summer, making them perfect for short-term rental income.
  
  
• Proximity to Town Center – Properties closer to the marina and downtown restaurants and shops tend to perform best.

Because of Southwest Harbor’s quieter atmosphere compared to Bar Harbor, many tourists are drawn to waterfront rentals that offer serenity and direct ocean access. With more families and retirees looking for peaceful getaways, investing in waterfront real estate near the harbor ensures long-term demand.

Manset, located just south of the main harbor area, is an emerging hotspot for investors. With panoramic views of Somes Sound and the Cranberry Isles, this area offers a blend of coastal beauty and tranquility. It’s home to several boatyards and marinas, making it appealing for sailing and boating enthusiasts.

• Renovation Opportunities – Older homes that can be revitalized to meet modern vacation
• Larger Lots – Many properties in Manset come with spacious yards, ideal for gardens, guest
• Water Views – Even homes set back from the waterfront often offer stunning ocean views, increasing their appeal and value.

Manset is less commercialized, which appeals to investors looking for long-term appreciation. The area is also attractive to buyers seeking second homes, making it a promising market for resale in the future.

Seawall, known for its proximity to Acadia National Park and stunning rocky coastline, is a prime location for those looking to invest in properties that cater to nature lovers and park visitors. The area is peaceful, scenic, and home to some of the most beautiful coastal landscapes on Mount Desert Island.

• Proximity to Acadia National Park – Properties close to park entrances or trailheads perform exceptionally well for vacation rentals.
  
  
• Rustic Cottages – Seawall is known for its cozy, rustic homes that blend naturally with the environment.
  
  
• Eco-Friendly Properties – Sustainable and off-grid properties are becoming increasingly popular among visitors seeking a unique experience close to nature.

Seawall’s appeal lies in its connection to nature. Properties that emphasize outdoor spaces, gardens, or eco-tourism features will continue to thrive in the rental market.

Freeman Ridge, located just outside the heart of Southwest Harbor, offers elevated properties with breathtaking views of Somes Sound and the surrounding mountains. This area is popular for its privacy, natural beauty, and the opportunity to invest in larger properties.

• Large Acreage – Properties here often come with more land, ideal for investors looking to develop luxury estates or vacation retreats.
  
  
• Modern Builds – Newer homes in this area appeal to buyers looking for modern amenities paired with scenic landscapes.
  
  
• Secluded Getaways – Freeman Ridge properties are perfect for investors targeting high-end buyers seeking privacy and tranquility.

Freeman Ridge is well-suited for high-end vacation rentals or luxury homes. As Southwest Harbor continues to grow in popularity, the demand for secluded, upscale properties will only increase.

Clark Point is a blend of old and new. With historic homes, modern developments, and easy access to Southwest Harbor’s marina, it’s one of the most diverse and desirable areas for investors. The area attracts a steady stream of visitors due to its harbor views and proximity to local dining and shopping.

• Historic Homes – Restoring historic homes can lead to significant appreciation, especially when maintaining original details.
  
  
• Mixed-Use Properties – Some properties in Clark Point are zoned for both residential and commercial use, offering unique investment opportunities.
  
  
• Short-Term Rentals – Homes in Clark Point are popular among vacationers looking for quick access to town amenities.

Clark Point’s blend of residential and commercial real estate makes it one of the most flexible investment areas in Southwest Harbor. Investors looking to diversify their portfolio should consider this neighborhood.

Fernald Point, known for its luxury homes and sprawling estates, offers some of the most exclusive properties in Southwest Harbor. It’s a quiet, secluded area that appeals to high-net-worth buyers and renters seeking privacy and top-tier amenities.

• Luxury Estates – Large homes with extensive grounds and oceanfront access.
• Exclusive Neighborhoods – Fernald Point is home to some of the most prestigious properties in the area.
• Private Beach Access – Homes with private beach access or waterfront features are in high demand.

While entry costs in Fernald Point can be high, the return on investment for luxury vacation rentals or high-end resale properties is significant.

Southwest Harbor’s real estate market offers diverse opportunities for investors, from waterfront properties and rustic cottages to luxury estates and secluded retreats. The key to successful investment is understanding the unique appeal of each neighborhood and matching it with market demand.

If you’re considering investing in Southwest Harbor, working with a local expert who understands the intricacies of the area is essential.

Looking to invest in Southwest Harbor real estate? Contact me, Steven Shelton, your local Acadia real estate expert. I’ll guide you to the best investment opportunities that Southwest Harbor has to offer. Visit acadiarealtyteam.com to start your property search today.