Introduction by Neil Palmer, Christie's International Real Estate's Chief Executive Officer
The luxury real estate market continues to capture the imagination of the buying public and to intrigue journalists worldwide. As the recognized authority in the high-end housing market, we are frequently asked questions such as: How are the international markets performing? Which markets are performing above expectations, and what are the primary drivers?
An even more important question to ask is this: How is inventory selling at specific price levels? At the very top of the market—above US$10 million in some markets and above US$5 million in others—these are primarily cash transactions. A largely discretionary buy of a second, third or even tenth home, these purchases are driven by a unique dynamic. Location, lifestyle, and sentiment are equally important as value, and in some cases, even more so.
Properties priced at US$1–5 million are largely purchased as a primary residence by those still in the workforce. These buyers typically require some financing. Lending remains challenging in many traditional markets with aversion to risk continuing to dominate the headlines. Consequently, this lengthens the amount of time it takes to sell these homes.
There are, however, high-performing geographies in luxury housing. Prime markets in Asia, Brazil, Switzerland, Canada, France, and central London continue to see robust demand with adequate funding availability. If there is a challenge in these markets, it is a lack of quality housing inventory.
The 129 brokerages in the Christie’s International Real Estate network were asked to complete a survey on the State of the Luxury Market. Select respondents were then contacted by phone to expand on the survey findings. This report captures the collective wisdom, experiences, and insights of the leaders of our network, the Affiliate Principals and management of Christie’s International Real Estate. The luxury real estate specialists you will hear from in this report are the most qualified leaders in their local high-end market as well as recognized authorities on the world stage. Read more...
