07 Oct Buyers are driving the world’s luxury property market more than sellers
Upscale real estate remains a seller’s market around the world, according to the annual Global Luxury Real Estate Report by Luxury Portfolio International, released Tuesday.
The share of high-net-worth individuals (HNWI) worldwide considering a luxury property purchase in the next three years hovers at 25 percent, widening its lead over those who are mulling a sale (17 percent), Luxury Portfolio International revealed at the report’s launch in Vienna.
Asia-Pacific and the Middle East are expected to show the most interest in a luxury property purchase. The former’s population of HNWIs, or those with a net worth of at least USD10 million, has increased 21 percent since 2015.
Insights from the report, collected with leading market researcher YouGov, illustrated marked regional differences in luxury consumers’ attitudes toward owning luxury. A staggering 81 percent of respondents in the Middle East equated luxury ownership with status: a symbol of internal validation.
In Asia-Pacific, status meant good fortune; 78 percent of respondents in the region equated luxury ownership with status.
All regions surveyed for the study, which included North America, Europe, and North Africa, pointed to a global demand for inventory with technology and security features, as well as flexibility for multi-generational use. Privacy also weighed into the selection of luxury stock, with 82 percent of respondents citing this as a deciding factor.
North America remains the global bastion of affluence, with HNW households growing in number by 146 percent since 2010. Sixty-one percent of HNW buyers in the US cited security as the greatest dealbreaker in a home purchase.