The global luxury real estate market has shown remarkable resilience and growth, particularly in some of the world’s most prominent cities. Here’s a snapshot of how luxury real estate is performing in New York, London, Dubai, and other leading markets:
New York
New York remains a powerhouse in the luxury real estate sector. The city recorded the highest number of super-luxury sales (properties priced at $25 million or more) in 2022, totaling 43 transactions. This demand is driven by both domestic and international buyers, buoyed by the city’s reputation as a global financial hub and cultural capital. [Mansion Global]
The Manhattan real estate market, in particular, has seen a significant rebound. In October 2021, the number of signed contracts surged by over 43% compared to the previous year, reflecting a strong recovery from the pandemic. The return of international buyers, enabled by the relaxation of travel restrictions, has further fueled this growth.
StreetEasy’s data also highlights a robust rental market recovery, especially in buildings offering high-end amenities. [StreetEasy]
London
London shares the top spot with New York for super-luxury real estate, matching its 43 sales of properties priced at $25 million or more in 2022. The city’s luxury market has rebounded strongly, with a 26% increase in these high-end transactions from the previous year. This resurgence is partly attributed to London’s appeal as a safe haven for international investors amid global economic uncertainties. [Knight Frank]
Dubai
Dubai has emerged as a standout performer in the luxury real estate market, recording the highest annual growth rate in prime residential prices at 44.2% in 2022. The city’s appeal has been bolstered by favorable visa policies and its status as a global business hub. Dubai’s luxury market is attracting ultra-high-net-worth individuals from around the world, seeking investment opportunities and lifestyle benefits in this rapidly growing metropolis. read UAE Dubai City guide
Other Key Markets
Los Angeles: Ranked third globally for super-luxury sales, Los Angeles recorded 39 transactions at $25 million or more in 2022. The city’s appeal lies in its glamorous lifestyle and robust entertainment industry. [Knight Frank]
Hong Kong: Despite a tumultuous year, Hong Kong saw 28 ultra-prime sales. The city remains a critical financial hub in Asia, attracting significant luxury real estate investments.
Miami: Miami’s luxury market has been buoyed by its favourable climate, attractive tax policies, and growing cultural scene, recording 23 ultra-prime sales
Industry Insights
Despite rising economic headwinds and growing uncertainty, the world’s wealthy have been committing to luxury residential property,” says Liam Bailey, global head of research at Knight Frank. [Knight Frank]
“All of the data we’re seeing points to an uptick in demand for homes in New York City, especially in the luxury segment, which is driving overall price growth in the market,” notes Nancy Wu, an economist at StreetEasy. [StreetEasy]
The luxury real estate market’s post-pandemic performance highlights the resilience and enduring appeal of prime global cities. As international travel resumes and economic conditions stabilize, these markets are likely to continue attracting high-net-worth individuals seeking safe investments and exclusive lifestyle offerings.
