Despite uncertainty, inflation, interest rate gyrations, and continual struggles with inventory and supply chains worldwide, the luxury real estate market is faring better than expected around the globe, according to the recently-released 2023 Mid-Year Luxury Market Update from Christie’s International Real Estate.
Affiliates of the luxury real estate network are slightly more confident about the upper end market than they were at this time last year, according to the report, which offers insights and predictions from Christie’s International Real Estate broker-owners in the U.S., Europe, the Middle East, Australia and Japan.
More specifically, the report provides a look at how several factors including currency fluctuations, geopolitical factors, interest rates and continued fallout from the pandemic have impacted the luxury market worldwide.
Highlights includes, affiliates in the Asia-Pacific region are seeing increased interest from overseas buyers who are taking advantage of currency fluctuations and a later reopening of borders following the COVID-19 pandemic.
Europe has been particularly hard hit by rising interest rates; however, a lack of supply – especially in uber-luxury markets such as Prime Central London and Paris – has fueled off-market activity and kept a floor under pricing.
Dubai is struggling to keep up with near-insatiable demand for new luxury properties, as 4,500 millionaires are expected to pour into the United Arab Emirates in 2023.
The report also identifies emerging trends in the luxury real estate market to watch throughout the remainder of 2023, including a focus on sustainability, the continual ratcheting of amenities and the quest for larger acreage near major cities.
