A survey of real estate specialists in more than 100 property markets across the globe reveals an enormous difference in where the starting price for a “luxury” home begins. Brokers reported luxury prices ranging from under $1 million in Palm Springs to $10 million in Monaco. The starting benchmark for a luxury home around the world varies considerably, and has shifted significantly in recent years thanks to exchange-rate movements. The average starting price for a luxury property worldwide is $2.2 million.
Overall, the worldwide market for luxury housing has shown itself to be relatively robust. Although recent global economic volatility has given some luxury home buyers pause, this asset class remains an important component of the portfolios of the world’s most affluent individuals, while investment continues to flow into the sector. In this year’s Luxury Defined report, we look beyond the headlines and offer fresh perspectives on how macroeconomic factors are impacting prices, inventory, and sales in the prime property market. We explore not only the impact of exchange rates on luxury housing but also the shifts in buyer demographics to better understand why some prime property markets remain on an upswing despite some of their countries’ declining economies. We examine trends in trophy property prices and explore the factors that have driven certain “comeback” markets to their strongest point since the global financial crisis. And finally we present an analysis of how affluent individuals’ passions and collecting habits are defining their home life and shaping the features and amenities within.