Perspectives draws from the expertise of an international network of almost 17,700 leading local agents to provide a detailed view of select regional luxury markets.
New York (March 15, 2024): Forbes Global Properties, an international network of selected real estate brokerages that connects buyers and sellers to the world’s most exceptional properties, has released Perspectives, a comprehensive recap of the international luxury residential market gleaned directly from its almost 17,700 prominent local experts. The report delves into 21 select luxury markets throughout the U.S., Canada, Caribbean, Mexico, Europe, and Asia, offering insights and forecasts complemented by a look at 2023 market-making transactions and contextual interviews with leaders in architecture, wealth, business innovation, and hospitality.
“Through the insights and outlooks of our global network, we paint a vivid picture of real estate’s current state and future trajectory,” said Michael Jalbert, Chief Executive Officer, Forbes Global Properties. “The parallels drawn between our member analyses and expert interviews offer a valuable guide for navigating and understanding the nuances of the prime property market and business world.”
An examination of the global luxury market revealed a 2023 increase of more than $1.5 trillion, spurring long-term strategic planning with a specific focus on securing financial stability for future generations. This trend is being realized by Bennett Property Shop Realty in Ottawa, Canada, where the projected generational transfer of $1 trillion by 2026 is empowering younger homebuyers and reshaping the real estate landscape.
“Through the insights and outlooks of our global network, we paint a vivid picture of real estate’s current state and future trajectory. The parallels drawn between our member analyses and expert interviews offer a valuable guide for navigating and understanding the nuances of the prime property market and business world.”
— Michael Jalbert, Chief Executive Officer, Forbes Global Properties
Perspectives also demonstrated that similar to previous years, high- and ultra-net-worth buyers were unincumbered by geographic boundaries, and flocked to destinations that offer a wide range of lifestyle amenities, culture, and pedigree. This was seen in cold and warm weather markets alike, and included Grace Bay Realty in Turks and Caicos which registered a 113% increase in the dollar volume of single-family homes over 2022, and South Florida where Keyes Co. CEO Mike Pappas commented, “Five years ago, there were less than 100 sales over $10 million, last year there were close to 600.”
As to the origin of the buyers, Chestertons in London experienced a wave of international buyers, a trend echoed by CDR San Miguel Real Estate in San Miguel De Allende, Mexico where 67% of the local market was made up of foreign buyers with Americans leading the group, and by 2Seas Los Cabos, Mexico, which saw an influx of buyers specifically from California, Texas, and Colorado. Similarly, Portugal’s Modern noted a 5% annual increase in investment leads from the US.
“We tend to get a lot of sales through people who just come on holiday and fall in love with the place,” commented Stephen Garvey of Best Invest in Turkey.
Slifer Smith & Frampton Real Estate in Colorado, Barry Cohen Homes in Toronto, Canada, Hong Kong’s Okay.com, and Driven Properties in Dubai joined several members who noted that high buyer demand was met with limited inventory within their respective markets.
“In 2023 we have seen a paradoxical dynamic where the market has clearly slowed down due to the increase in interest rates, but prices kept increasing due to a strong demand and limited [inventory], yet at a slower pace than in previous years,” said Quentin Epiney, FGP Swiss & Alps.
“We’re kind of overexposed,” said Matt Beall, Hawaii Life. “Because so much of the trade volume during Covid was in the high-end market, we sold everything there was to sell.”
A similar sentiment was reported by Ryan Knowles, MAISON Bahamas, “We had a lot of buyers actively looking for properties on the market, and we had very little to show them.”
However, around the world, market optimism is on the rise as 2024 unfolds. In December 2023, Shaza Luxury Real Estate reported that the number of homes sold in Sweden increased by 8%, compared with the previous three months. David Kramer of Beverly Hills’ Hilton & Hyland also believes that the market rally that began at the end of 2023 will bring strong sales this year, especially with an anticipated decrease in interest rates to further bolster market confidence.
And pointing to “pent-up demand from buyers who are looking for trophy properties,” Ken Jacobs of Private Property Global in Australia, also anticipates a strong 2024 with new submarkets potentially gaining prominence.
Chris Morrison of RETSY in Arizona believes that as interest rates decline, inventory will increase. “All those people on the sidelines could flood the market,” he said.
“I’m optimistic,” said John Turpin, Turpin Realtors, New Jersey, said of the luxury market. “I am hopeful that pent-up inventory will come to market, meeting strong buyer demand not only in the luxury segment but across all markets.”
“I’m positive for the new year,” echoed Anthony Morsinkhof, PQ Property Intelligence, New Zealand. “There’s still hard work and people need to be realistic about prices they’re going to get, but there’s definitely a change happening.”
The exclusive worldwide residential real estate partner of Forbes, Forbes Global Properties provides branding and marketing services to the world’s premier real estate firms and is now presented by real estate agents across 25 countries in more than 500 locations. Members are thoroughly vetted, and the network is comprised of top brokerages with proven records of success in luxury property sales and recognized delivery of exceptional client service.
