Published: February 22, 2023 | By: WRE News
A five-year review of markets included in the Forbes Global Properties curated consumer marketplace of luxury homes has revealed a 34% increase in sales price 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. Forbes Global Properties is an invitation-only membership network of top real estate firms.
“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, Chief Executive Officer, 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%.”
According to “Perspectives: A Report on International Luxury Real Estate,” published by the organization, luxury segments were insulated from the effects of rising inflation as affluent buyers are typically less sensitive to spikes in interest rates due to limited reliance on credit. Forbes said its report includes 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 ranks buyer preferences, while also underscoring market resiliency through recent trophy transactions.
In some markets, economic and geopolitical volatility coupled with a dearth of quality housing stock resulted in prospective buyers pausing on potential property searches. However, Forbes Global Properties real estate specialists stressed that around the world, ultra- and high-net-worth individuals characteristically look beyond short-term turbulence and continue to see property purchases as a safe and 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. 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.”
“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, Forbes Global Properties.
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.
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