Seventeen percent of ultra-high-net-worth individuals bought a home last year, the second-highest share in the past 16 years, according to UK-based real estate consultancy Knight Frank in its latest wealth report. The report finds luxury homes rose in price by 5.2 percent on the year.
The highest price growth was in Dubai, where luxury home prices rose 44 percent, and Aspen, at 28 percent.
In the highest-priced tier — homes priced higher than $25 million — New York City and London were tied for the most such sales in 2022, but with prices moving in different directions. In New York, those sales saw a year-over-year decline of 35 percent, while for London prices rose by 26 percent. Third through fifth place went to Los Angeles, Hong Kong, and Miami.
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The type of location preferred by the luxury-buying set continues to be affected by pandemic-related trends, according to the report: "Wealth preservation, hybrid working and early retirement themes supported resort markets, with sun and ski locations outperforming average prime market growth in 2022," by about 60 percent more than the average.
Looking forward, Knight Frank's global head of research, Liam Bailey, wrote " As the interest rate pivot approaches later this year we believe market sentiment will shift, quickly, and investors need to be well placed to take advantage of the very real opportunities emerging across global real estate markets."