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The world’s wealthiest people are looking for really serious investments when it comes to buying their next home. A quarter of high-income Americans, or those with wealth of $30 million or more, plan to buy a home this year, according to the Douglas Elliman and Knight Frank Wealth Report. According to the report, the average rich person owns up to four homes on average. A quarter of their housing portfolio is outside their home country.
When it comes to priorities for their next big purchase, the super-rich rank “lifestyle” and “investment” first on the list, followed by taxes and safety.
The decline in the housing market also affected the luxury segment. Last year in one of the largest US real estate markets, there were 34 sales of high-end properties valued at more than $50 million, down from 45 sales in 2022, but still significantly more than in pre-pandemic years.
Interest rates are trending toward stabilization and possibly falling this year, and real estate experts say there are some signs that the supply of luxury goods may be growing, which could lead to more sales.
The report predicts that the best performing market globally will be luxury real estate Auckland in New Zealandwith projected price growth of 10% in 2024.
Mumbai is in second place with 5.5%, followed by Dubai (5%), Madrid (5%), Sydney (5%) and Stockholm (4,5%).
13 cities with the fastest growing population of millionaires in the past year
There are also two European cities in the ranking
Prices
Last year, the world’s 100 largest luxury real estate markets reported a 3% increase in average price. The world’s best-performing luxury property market was Manila, Philippines, with 26 percent growth that came in part from investors fleeing Hong Kong and China. Dubai came in second with 16% price growth, followed by the Bahamas at 15% and Portugal’s Algarve region at 12%.
Among the worst performers last year were New York, with prices down 2%, and San Francisco, down 0.5%. The world’s biggest faller among major markets was Oxford, down 8%.
Flight of the rich from the USA
According to the analysis, wealthy American buyers are increasingly heading abroad. Americans are now the leading foreign buyers of prestigious and luxury properties in London – those priced above $10 million. They are also increasingly active in Europe.
“If we do see lower interest rates or at least more confidence that inflation is coming down, I think we’ll start to see more supply again,” said Liam Bailey, partner and global head of research at Knight Frank.
According to him, American buyers have an increasing presence in Italy, France and Portugal. “I think American buyers have become much more willing to explore and think about alternatives outside the home country.”
What can you buy with $1 million in the world’s most expensive property markets?
Monaco holds the title of the most expensive housing market in the world. For 1 million US dollars you can buy only 15 sq.m. area of luxury property, according to Wealth Report data. Then there’s New York, where you can buy 33 square meters for that money. Third is London (34 sq.m.), together with Singapore (34 sq.m.) In Dubai, 1 million US dollars buys 105 sq.m. – five times more than in Hong Kong (22 sq.m.). In Cape Town or Sao Paulo with the same budget, securing over 200 sq.m.
