'The panorama of the "COVID boom" is clearly behind us,' says Mickey Alam Khan, president of Luxury Portfolio International. And with the dust now settling, so too is the market, Mickey adds, 'with the latter half of 2022 ushering necessary market stability into 2023 and beyond.'
According to Luxury Portfolio International’s newly released State of Luxury Real Estate (SOLRE) 2023 report, affluent home buyers are moving past, and working with, pandemic shifts in the market, thinking long term and city center for their next purchases.
Affluent consumers appear to be leaning into the new real estate environment, according to the 2023 SOLRE report, which is based on a survey of nearly 3,000 individuals in the top five percent income in 28 countries.
'Adaptability is the defining spirit of buyers currently, and confidence is its currency,' adds Mickey.
'The worldwide wealth outlook is positive over the next five years. Breakout growth among ultra-high-net-worth individuals is creating a global upper-middle class.'
Luxury home buyers — those who plan to purchase a home at $1 million or above in the next three years — are 'aware of the potential headwinds,' as Mickey explains. But whether these come in the form of local economic conditions, the fragmented political landscape of climate change, buyers are still ready to trust themselves to make decisions and go ahead with their purchases.
'Owners and buyers expect values to rise in 2023 and investment-property purchase expectations remain at 2022 levels,' Mickey concludes. 'Luxury real estate remains a solid investment in a time of upheaval.'
The report includes three main sections: behaviour, mindset and trends.
Behaviour takes a look across the world at the various luxury real estate markets — with New York, Beijing and Singapore the hottest places right now — as well as looking at the new luxury markets which emerged in the wake of the Pandemic, such as Harrison, Idaho, and College Grove, Tennessee.
The mindset section takes a fascinating look at how buyers think about their property purchases, finding that 89% admit that their instincts are now their primary guide in decision making, with gut feelings validating decisions that have already been quantified rationally.
Finally, the trends section of the report looks at how buyers are thinking right now, concluding that they're looking for places that are both solid investments and surrounded by natural beauty — and city centre homes are still hugely sought-after. It's also fascinating to see that over 50% of luxury property buyers in the 18-49 age range are still happy to buy a house purely after a virtual tour.
You can read an extended summary of the SOLRE report in LPI’s latest blog post, there's a list of key findings below, or you can download the PDF directly from this link.
Key Findings from The State of Luxury Real Estate report
Luxury Residential Real Estate Market Behaviour
- The Affluent Housing Shortage Continues
- Luxury Residential Market Establishes New Normal
- Asia-Pacific Affluent Expressing Pent-up Demand for Housing
- Europeans Remain in a Post-COVID Slump
- South America Has Strong Intentions Despite Economic and Political Shifts
- North America Is Bullish on Luxury Real Estate
Consumer Sentiment
- Buyer Insight: Tenure with wealth
- A Long History of Living With Wealth and Affluence
- Trusting Their Instincts
- Living Their Values: Recreation Activities Align With Priorities
- Intensely Happy by Design
- Personal Well-being Activities Are Remarkably Consistent Globally
- Environmental
- Sustainability Is an Element of Well-being
- Inspiration Is the Most Potent Form of Social Well-being
- Ready to Entertain at Home Again
- Large-scale Events Regaining Popularity
- Confident for a reason
- Wealth Creation Continues at a Historically High Pace
- Personal Financial Outlook Is Healthy
- Luxury Home Buyers Are Alert to the Realities of the Day, but Are Not Troubled by Them
- Spending Intentions Are High Between 2022 and 2023
- Luxury Spending on Home Goods Expected to Rise During the Holiday Season
Buyer Trends in Luxury Real Estate
- Consumers Are Prepared to Act, and Buyers are Motivated
- Fear Keeps Many Potential Clients Out of the Market Entirely
- Sound Investment is the Top Priority in 2023
- A Difficult Investing Year Spurs a Return to Quality
- Luxury Investment Properties Are On-trend
- The City Center Remains the Most Desirable Address
- Focus is Shifting from Shared Walls to Single-Family Homes
- In It for the Long Haul
- Financing: Cash Is No. 1, But It Is Complicated
- Next-gen Buyers Are Open to Virtual Buying Opportunities
- Use of Online Agency Appeals to Next-gen Buyers
Why the luxury international property market is heading for balance in 2023
Mickey Alam Khan, President of Luxury Portfolio International, shares his views on the latest in the international property market leaned
Five things to look out for in the international property market next year
The latest report from Luxury Portfolio International shows that the high-end property markets around the world are still in rude
Credit: Getty Images
10 top locations to invest in international property in 2022
As the global property market begins to normalise, estate agents’ network Luxury Portfolio International identifies some of the best places
-
If the future of Ferrari is electric vehicles, then it is our future tooIt's widely believed that Ferrari will unveil its first electric car this year. It's the signal that the internal combustion era is coming to an end.
-
Gaze over Cap Ferrat in this four-bedroom French villaIgnore the wind and the rain. Imagine yourself in this hillside home with some of the best views the Mediterranean can offer.
-
Code8: Beauty on Burlington ArcadeCome along Burlington Arcade with Hetty Lintell to visit beauty gurus Code8, and try their new Day To Night Foundation.
-
The gift of growingEntirely built to suit your needs, a bespoke Alitex greenhouse not only helps you nurture flowers and vegetables, but also offers a tranquil retreat from the pressures of daily life.
-
The ultimate Canadian train journeyExperience the spectacular scenery of the Canadian Rockies onboard the luxury and top-tier service of Rocky Mountaineer.
-
The Art of Lighting: Four of Britain's top designers share their best tips for choosing lightingAt a recent panel discussion hosted at Vaughan’s London showroom during Focus/24, interior designers Emma Pocock and Sarah Peake, lighting designer Jo Mann of Lighthouse Designs and Richard Smith of Vaughan shared their top 10 tips on choosing lighting.
-
The beauty of bespoke: A journey with Julia Lloyd GeorgeGoing bespoke with Julia Lloyd George means getting not just a piece of jewellery, but a lifelong treasure.
-
Hancocks: Sparkle of geniusHistoric jewellery firm Hancocks, now in its new St James’s home, specialises in old-cut diamonds pieces that gleam and turn heads even in low light.
-
The timeless appeal of Vaughan and the secrets of good lighting to be unpacked by four of Britain's top designersFor more than four decades, Vaughan has combined inspiration from past and present to create beautifully crafted lighting, furniture and textiles that will stand the test of time.
-
The glittering new home of Hancocks London, the jeweller that makes the Victoria CrossThe new home of Hancocks London celebrates the historic brand’s history of making exquisite jewellery and providing the bespoke service that befits them.
