Global Luxury Real Estate Market Forecast : Insights for 2024
- DELCARE
- Jul 1, 2024
- 3 min read
As a leading authority in the luxury real estate market, Delcare Properties International presents an in-depth analysis of the 2024 global luxury real estate market. Our insights are drawn from the perspectives of our market-leading affiliates across nearly 50 countries and territories, offering unparalleled expertise on key luxury destinations worldwide. Here, we explore the state of luxury real estate in ten high-end markets, including emerging trends in Africa, to provide a comprehensive forecast for the year ahead.
The United States: San Francisco Bay Area and New York
San Francisco Bay Area
The San Francisco Bay Area has weathered significant challenges, from tech layoffs to bank collapses. Despite these hurdles, the long-term outlook remains bullish, particularly with the rise of AI and the return-to-office movement. Levine Njau, CEO of Delcare Properties International, predicts a resurgence in areas close to tech hubs like Palo Alto, driven by strong open house activity and multiple offer situations. Inventory levels are expected to increase, meeting the high demand and stabilizing prices, particularly in San Francisco.
New York
New York's real estate market is a tale of two scenarios. Suburban markets in Westchester County, northern New Jersey, and Fairfield County face a severe inventory crunch, giving sellers the upper hand. Conversely, Manhattan experiences a buyer's market, less sensitive to interest rates and influenced by global factors. Anticipates increased international buyer activity in 2024, driven by geopolitical instability and the return-to-office trend.
Texas: Dallas-Fort Worth
In Texas, luxury drives the Dallas-Fort Worth market, particularly in high-value properties. Highlights the strong demand for homes priced at $15 million and above, fueled by a robust job market and corporate relocations. Despite potential setbacks from short-term rental regulations, the market sentiment remains positive, with high pent-up demand expected to drive transactions in 2024.
Europe: The United Kingdom, Germany, and France
The United Kingdom
The UK sees a shift back to urban centers as businesses call employees back to offices. David Ruddock of Carter Jonas anticipates urban areas outperforming rural locations in terms of price growth. Despite a projected 4.4% decline in average home prices, demand is expected to rebound strongly, aligning with anticipated interest rate reductions.
Germany
Munich's luxury market faces a slow down due to high interest rates and cautious buyers. Markus Riedel of RIEDEL predicts stable inventory and demand levels in 2024, with continued interest in city-center penthouses and suburban villas. High-end properties remain resilient, driven by limited supply and unique offerings.
France
Paris contends with high interest rates and a cautious market. Charles-Marie Jottras of Daniel Féau Conseil Immobilier reports a 25% decrease in sales volume and a 7% drop in prices. However, Paris's luxury market remains attractive to wealthy international buyers, drawn to its historical landmarks and cultural appeal.
The Caribbean
The Caribbean's luxury market, known for pristine beaches and tax incentives, remains robust despite a general slowdown. Delcare Properties International Affiliates notes exciting new developments and sustained interest from luxury buyers. Key projects like The Loren at Turtle Cove in Turks & Caicos and Six Senses Grand Bahama signal significant growth opportunities in 2024.
Australia: Sydney
Sydney's luxury market thrives on strong demand from overseas buyers, particularly from China. Real Estate Sydney expects this trend to continue, driven by favorable exchange rates and Australia's appeal for its clean environment and educational institutions.
Africa: Emerging Luxury Markets
South Africa
South Africa's luxury real estate market is buoyed by increasing demand in cities like Cape Town and Johannesburg. Cape Town's scenic beauty and Johannesburg's economic hub status attract both local and international investors. The market shows resilience, with growing interest in eco-friendly and sustainable properties.
Morocco
Morocco's real estate market, particularly in Marrakech and Casablanca, benefits from its cultural richness and strategic location. The government's incentives for foreign investors and the development of luxury resorts and residential projects bolster the market's appeal. Future growth is expected as more international buyers seek high-quality, affordable luxury properties.
Kenya
Kenya's luxury market, especially in Nairobi, experiences significant growth, driven by a rising affluent population and increased foreign investment. Nairobi's positioning as a business hub and the development of high-end residential and commercial projects enhance its attractiveness. Sustainable and green building practices are becoming more prevalent, aligning with global trends.
Conclusion
The 2024 global luxury real estate market presents a diverse landscape with varying trends and opportunities. From the tech-driven resurgence in Silicon Valley to the stable high-end markets in Europe and the burgeoning luxury sectors in Africa, investors have numerous options to explore. Delcare Properties International remains committed to providing expert guidance and exceptional service to help you navigate these dynamic markets.
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