Luxury real estate: state of the art

This series of articles sums up the trends in the luxury real estate market worldwide. It’s based on several international studies led by the most influents real estate companies all around the world.

As real estate agents in Monaco, we have to stay on watch for trends and insightful informations. We wanted to share with you some of these very inspiring insights, that shape the luxury real estate market in the world, for whom Monte Carlo represents a milestone.

The demand for global luxury real estate is on the rise in 2023, despite economic and geopolitical uncertainties world-wide.

First fact: Affluent housing shortage continues

For 3 years now, the number of buyers is greater that the number of properties available on the market.

This feed the demand: 59% of the potential buyers are highly optimistic about luxury residential real estate.

Behaviour: within the head of a luxury homebuyer

A lot of prospective buyers have been pushed out of contention in their most desired market by the lack of investment opportunities.

Research reveal that 2023-25 will be likely stronger than pre-covid times.

Buyer expect a near to start recession. They know how numerous are the issues they will have to face but they stay undaunted. Hence, they tend to rationalise their investments, letting the intangible and irrational « coup de cœur » part aside.

They classify their needs between:

  • Quality of investment
  • Beauty
  • Family compliance
  • World sustainability
  • Personal satisfaction

When it comes to under 50 years old buyer, online channels and off market assets are privileged.

Number of HNWI is climbing, reaching an all-time highs. The millionaire cohort is expected to grow by 40%, especially in the USA, China, UK, Canada, Australia and New Zealand.

Cities centres remains the most desirable areas.

37% of buyers expect to purchase in the city center, washing away investment-grade properties and intending increase in home prices.

In this market, the median-plus luxury ($1.25 million and more) has known a faster increase, leading to forecasting greater expectations of sales at the lower end (under $1.25 millions).

Claimed Properties characteristics

Buyers are looking for space outside and a so called trophy view as well as updated or upgraded amenities. Another trend is to find in the rising sales with luxury condominiums, following the pandemic.

Even if overall uncertainties, whether they are geopolitical or economical don’t seem to upheaval buyers, it appears that the luxury real estate market follows the general trends, even from a distance. People are seeking for rational yet satisfying investment when it comes to real estate, and the quest for desirable characteristics in purchases might well be an answer to this world ugliness.

Stay tuned for more insights.
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