Forbes Global Properties announces the release of Perspectives, an analysis of the international luxury residential market gleaned directly from the Forbes network’s more than 13,000 prominent local experts. The report examines luxury property market activity in 22 countries, ranking buyer preferences and underscoring market resiliency through recent trophy transactions.
Perspectives shows that luxury market segments were insulated from the effects of rising inflation–affluent buyers are typically less sensitive to interest rates spikes due to limited reliance on credit. This was exemplified by a five-year review of studied markets that revealed a 34% increase within the top 20% of 2022 transactions. Furthermore, numerous markets, including the domestic and international cities of Miami, Dubai, Melbourne and the states of Arizona, Massachusetts, and Utah recorded their highest-ever priced residential transactions in 2022.
“2022 was marked by a return to steady price increases and transactional volume following a period of unprecedented pandemic-fueled price appreciation,” said Michael Jalbert, CEO of Forbes Global Properties. “63% of our markets experienced year-over-year price increases, and where declines were reported, they were modest, registering at or below 15%.”
In some markets, economic and geopolitical volatility coupled with a dearth of quality housing stock resulted in prospective buyers pausing on property searches, the company stated. However, Forbes Global Properties real estate specialists claimed that around the world, ultra- and high-net-worth individuals continue to see property purchases as a secure storage of wealth.
Reviewing the world’s top 100 highest-priced transactions in 2022 revealed that 58 of the homes were located in major global cities, and just over a third were found in revered vacation destinations. The top 25 transactions exceeded an aggregate total of US $2.57 billion and ranged in price from US $72 million to Florida’s largest-ever residential US $173 million sale, the company said. Forbes Global Properties members are credited with several US $50 million-plus transactions, including the US $126 million sale of Bel Air’s “The One.”
According to the company, 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,” said Bonnie Stone Sellers, co-founder and chair of Forbes Global Properties.
For more information, visit https://www.forbesglobalproperties.com/.
