Record Surge in Global Uber-Luxury Home Sales
According to a recent report from Knight Frank, the global market for ultra-luxury homes in major financial centers experienced a significant surge in sales during the first quarter, showing an 11% increase since December. The data revealed that a total of 417 properties priced at $10 million or above were sold in the 12 markets monitored by Knight Frank in the first three months of this year, compared to 376 transactions in the final quarter of 2022. This rise in sales marks a recovery from the peak of the second quarter of the previous year when sales of extremely high-end properties reached their highest point.
Knight Frank's global head of research, Liam Bailey, explained that this recent upturn follows a period of slowed activity due to higher interest rates and growing geopolitical risks. However, it is important to note that the growth rate has decelerated compared to the booming real estate period. The figures indicated that there were 1,645 transactions in the 12-month period ending in March, which represents a decline of 28.4% from the recent peak of 2,298 sales recorded in 2021.
Bailey also highlighted that despite the increase in volumes during the first quarter, the total value of super-prime sales amounted to $7.2 billion, which was a 4% decrease from the previous quarter. The report emphasized that Dubai emerged as the leading market with 88 super-prime sales in the first quarter, underscoring the emirate's significant role in supporting the global ultra-luxury real estate sector. Bailey mentioned that Dubai's share of super-prime sales across the 12 monitored markets rose from 2% in 2019 to an impressive 17% in the most recent 12-month period.
Following Dubai, Hong Kong secured the second position on the list with 67 sales of homes priced at $10 million or more, while New York (58), Los Angeles (46), Singapore (37), and London (36) followed closely. Palm Beach, Florida, and Miami, two luxury markets that have gained substantial attention since the beginning of the pandemic, ranked seventh and eighth, with 30 and 20 sales respectively. Geneva, with only 19 super-prime sales during the first quarter, boasted the highest average price for such properties at $23.8 million. Sydney recorded 10 uber-luxury deals, with Paris and Orange County, California, completing the list with three top-of-the-market sales each.