Forbes Global Properties, a curated consumer marketplace of luxury homes and an invitation-only membership network of top real estate firms, has released Perspectives, a comprehensive analysis of the international luxury residential market gleaned directly from its more than 13,000 prominent local experts. The report examines luxury property market activity in 22 countries and also ranks buyer preferences.
Skyrocketing home prices and record-breaking luxury sales volumes that captured headlines during the Covid pandemic were abated somewhat in 2022. Sales activity and price growth at the rates seen between late 2020 to early 2022 were not sustainable. After beginning 2022 at the same breakneck speeds that characterized 2021, volatile financial markets, rising inflation, limited housing supply, and economic and geopolitical uncertainty gave sellers and buyers reason to pause, causing luxury real estate transaction activity to ease.
Prime property sales in many markets across the globe began to slow in mid-2022, returning to the more normalized pace of pre pandemic years. “Buyers of luxury properties in 2022 watched their financial investment portfolio diminish, which created a cautious approach to purchase and many stayed on the sidelines,” said Andy Nelson of Willis Allen Real Estate in San Diego, California.
Luxury Sales Skyrocketed in 2021 and returned to pre pandemic norms in 2022. In the study of 20 top primary and second home markets across six countries, luxury property sales volumes spiked in 2021, growing on aggregate by 35% over 2017 figures.
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The collective insights of Forbes Global Properties members highlight that amenities sought by high-net-worth buyers have continued to evolve, with a list of top six must-haves that includes outdoor space, proximity to lifestyle amenities, multiple home offices, more space to accommodate the return of in-home entertaining and hosting private pools and fitness facilities, and an expansive upgraded gourmet kitchen. Although not ranked, increasingly sought-after amenities also include electric vehicle charging stations and communities that offer enhanced levels of security.
“Luxury real estate continues to command strong prices in the world’s top major cities where the most affluent individuals are prioritizing outdoor living spaces and convenient access to lifestyle amenities that rival the most coveted vacation destinations,” says Bonnie Stone Sellers, Co-Founder and Chair, Forbes Global Properties.
The global prime property market continued a rapid growth trajectory in early 2022 following a period of pandemic-era fueled price appreciation and booming sales. However, shifting macro economic factors in the second half of the year led to a slowdown in transaction volume across many luxury property markets. In turn, prices remained stable and, in many cases, higher than before.