Luxury Real Estate in 2024: Lifestyle, Investment and Global Opportunities
Written by: Nyah Chapman
For the ultra-wealthy, purchasing luxury real estate in 2024 is being driven by two key priorities - lifestyle and investment potential. According to the latest analysis from top brokers, Sotheby’s International Realty, Compass, Douglas Elliman and Knight Frank Wealth Report, one-quarter of American ultra-high-net-worth individuals (those worth $30 million or more) plan to acquire a new residential property this year. The reports reveal that "lifestyle" and "investment" topped the list of priorities for these affluent buyers, followed by considerations around taxes and safety. With an average of four homes already in their portfolios, 25% of the ultra-wealthy's residential holdings are located outside their home countries.
U.S. Luxury Market Outlook
While the overall U.S. housing market has faced headwinds from low inventory and higher mortgage rates, the luxury segment has proven more resilient. The report forecasts Miami will be the best-performing U.S. luxury market in 2024 with 4% price growth, followed by New York at 2% and Los Angeles at 1%."If we do see a pivot to lower rates, or at least more confidence that inflation is going in the right direction, I think you will begin to see inventory building up again," said Liam Bailey, Knight Frank's global head of research.Despite some cooling from the pandemic-fueled frenzy, the ultra-luxury tier remained active in 2023 with 34 sales over $50 million across the U.S., down from 45 the prior year but well above pre-pandemic levels.
Global Luxury Hotspots
Looking abroad, the report identifies Auckland, New Zealand as the top global market for luxury price appreciation in 2024 at 10%, driven by limited supply and increasing demand from affluent buyers. Other projected leaders include Mumbai (5.5%), Dubai (5%), Madrid (5%), Sydney (5%) and Stockholm (4.5%).In 2023, Manila topped the world's 100 prime markets with 26% price growth, followed by Dubai at 16% and the Bahamas at 15%."American buyers have become much happier to explore and think about alternatives," noted Bailey regarding the increasing appetite for overseas luxury properties among U.S. ultra-high-net-worth individuals.
A Million Doesn't Buy What It Used To
While the luxury real estate market remains robust, the report highlights how $1 million doesn't stretch as far as it once did. In Monaco, the world's priciest market, $1 million only buys 172 square feet of prime real estate. Aspen offers 215 square feet, Hong Kong 237 square feet, while New York seems almost a bargain at 367 square feet for $1 million.As the affluent seek out new lifestyle experiences and strong investment returns in 2024, the global luxury real estate landscape presents ample opportunities from Miami to Mumbai. For those with ultra-high net worth, their residential portfolios are poised for further international diversification and growth.
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About Nyah Chapman, Realtor & founder of The Luxe List Media
Meet Nyah Chapman-The Luxe REALTOR®. Hailing from Denver, Colorado, Nyah relocated to Atlanta almost a decade ago after falling in love with the sophisticated blend of city and southern hospitality. As a second-generation realtor and daughter of a builder, Nyah not only inherited exposure to real estate, she developed a sincere interest in the industry.
“I combine my love for real estate with my passion for connecting with people, and thoroughly understand what it is like to stand in my client's shoes.”
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