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Global ultra-luxury home sales up 66% in the past five years
According to the latest data from global property consultancy Knight Frank, 463 sales of properties worth more than $10 million were recorded across 11 major markets in the three months to June 2024. The figure is slightly lower than the 476 recorded in the previous quarter, but sales volumes at the high end of the housing market remain around two-thirds higher than pre-pandemic levels.
Liam Bailey, global head of research at Knight Frank, said: “Significant wealth creation has underpinned the growth of the global super prime sales market, with the transformation of markets such as Dubai, Palm Beach and Miami more than compensating for the slowdown experienced in some more mature markets. As interest rates fall, total transaction volumes are likely to increase out to 2025.”
Annual sales are stable
Total super prime home sales in the 11 markets reached $33.4 billion in the 12 months ending in June 2024. Since peaking at nearly $44 billion in total volume in late 2021 as the pandemic-driven market boom subsided, annual sales have stabilized at between $32 billion and $34 billion through the fourth quarter of 2022.
Post-pandemic growth
Although activity has slowed recently, the pandemic has caused the super prime market to expand significantly. This growth has been particularly evident in markets such as Palm Beach, Miami and Dubai, where activity has surged due to shifts in the global distribution of wealth. Annual sales are currently at $33.4 billion, up significantly from $20.1 billion in 2019.
Major Market Performance
Dubai stands out as the fastest growing market, with sales of properties over $10 million surging to 436 in the trailing 12 months from 23 in 2019. Geneva also saw a strong increase in sales, increasing from 59 in 2019 to 102. Palm Beach sales jumped from 50 to 138, while Miami saw a strong increase from 41 to 149. Markets such as New York, Singapore, Paris and Hong Kong have been less affected by the recent growth, while mature markets such as London and Los Angeles have seen sales increase by 25% to 50% during the period.
Wealth Creation
Growth in this market has been driven by the broad-based rise in global wealth in recent years. The Knight Frank Wealth Report confirms that the number of ultra-high net worth individuals (UHNWIs) in the world has increased by 19% over the past five years. The strong performance of some US markets and Dubai is largely due to recent wealth creation in these regions, with the number of UHNWIs in the US expected to grow by 8% in 2023 and 6.2% in the Middle East.
This Quarter Details
Dubai led the market in sales volume in the second quarter of 2024, recording 85 transactions, down from a peak of 131 in the third quarter of 2023. New York came in second with 72 sales, its highest figure in two years. Hong Kong performed well with 61 sales, signaling a market recovery after several sluggish quarters due to increased demand from mainland Chinese buyers and soaring individual unit prices in the city.