From the concept of quiet luxury to the rise of the upscale college town, and from the arrival of the Gen Z homebuyer to the impact of mansion taxes, the luxury real estate market offers a number of interesting storylines this spring and beyond, according to a new report from Christie’s International Real Estate.
The findings are based on surveys and interviews with Christie’s International Real Estate affiliates in nearly 50 countries and territories around the world.
Luxury real estate: Key report themes
Increased inventory: Most affiliates expect some relief to the inventory crunch throughout 2024, while US brokers are more optimistic than their European counterparts regarding an increase in prices.
University towns go upscale: Cities like Madison, Wisconsin, Ann Arbor, Michigan, and Athens, Georgia have seen luxury home sales triple in recent years, as buyers seek big-city amenities in a small-town setting with a lower cost of living.
Low-maintenance luxury for Gen Z: Gen Z home buyers are entering luxury real estate markets around the world, prioritizing eco-friendly and high-tech features and low-maintenance living.
Quiet luxury on the rise: Today’s high-net-worth homebuyers are embracing the notion of “quiet luxury,” characterized by understated elegance rather than flashy displays of wealth.
Markets to watch: Several emerging markets stand out as top prospects for luxury real estate investment in the coming year, including Malta, Nicaragua and Park City, Utah.
The report also examines significant luxury home sales within the Christie’s International Real Estate network during 2023 and the market trends they underscore. Headline-grabbing transactions included the $76 million record-breaking sale of a home in Aspen, Colo., the sale of a $30+ million beachfront estate in The Bahamas, and a $43 million sale of a historic estate in Switzerland.
“A stable U.S. economy, early signs of recovery in Europe, and the influence of Asian funds in high-end property markets around the world are all positive signs for the global luxury real estate outlook,” said Mike Golden, co-CEO of Christie’s International Real Estate. “Amid that backdrop, a number of interesting demographic, lifestyle, and locational trends are taking shape, and the purpose of this report is to help luxury buyers and sellers spot and understand those trends, so they can be confident participants in the market this year and beyond.”
Images: 77 Clarendon project, Toronto
