The ultra-luxury real estate market saw an 18% decline in $10M-plus home sales globally prior to the U.S. elections, with notable decreases in markets like Miami and Palm Beach. Conversely, London experienced slight growth. Amidst this downturn, many wealthy Americans expressed intentions to move abroad, underscoring the political climate’s impact on affluent buyer behavior.
The ultra-luxury real estate market has experienced a notable slowdown in sales, particularly in the lead-up to the U.S. presidential election. A recent report by Knight Frank, a London-based brokerage, indicated that globally, there were only 406 transactions of homes priced at $10 million or more in the third quarter of 2024, marking an 18 percent decrease in the number of sales and a 17 percent decrease in total value compared to the prior quarter. This decline in super-prime residential real estate was attributed to uncertainty surrounding the election results, which discouraged affluent buyers from pursuing high-value property investments.
Markets such as Palm Beach and Miami, both exhibiting significant drops in luxury home sales, reported their lowest numbers since late 2022. Specifically, Palm Beach recorded a mere 16 sales in the super-prime classification, while Miami observed a 60 percent decline from last year’s figures, with only 23 trophy sales. Meanwhile, the Dubai market suffered a 40 percent decrease in ultra-luxury transactions. In contrast, London saw an uptick from 47 to 51 sales in the $10 million-plus category, attributed to favorable changes in the local government’s fiscal policies. Nonetheless, London still lagged behind its pre-pandemic average sales surge, which consistently surpassed $1.5 billion quarterly.
Amidst these challenging market conditions, there has been a significant increase in American millionaires expressing intentions to relocate abroad post-election, independent of the outcome. A survey conducted by Arton Capital revealed that over half of the U.S. millionaires are considering leaving the country, with 64 percent of younger affluent individuals (ages 18 to 29) seeking investment in overseas golden visas. Armand Arton remarked on the enduring migration trends between Americans and Europe, emphasizing the willingness of wealthy individuals to invest substantial amounts into international properties or funds.
The report by Knight Frank addresses the dynamics of the ultraluxury real estate market, particularly in the context of global trends influenced by U.S. political events. This sector is often viewed as a bellwether for economic confidence and consumer behavior among high-net-worth individuals. The findings shed light on the weighty effects of political uncertainty on significant financial decisions among the wealthy, as well as shifts in demand across various global markets.
The analysis of the luxury real estate market highlights the considerable impact of political uncertainty on buyer behaviour, particularly in the lead-up to U.S. electoral events. As high-net-worth individuals reassess their investment strategies under prevailing conditions, there remains a critical need for market participants to remain attentive to shifting patterns in demand and international mobility trends among affluent populations. Given the complexities observed across different global markets, the luxury real estate sector’s recovery may hinge on forthcoming political developments and economic stabilization.
Original Source: robbreport.com
