Last year witnessed a solid 3% average price gain across the globe’s top 100 luxury real estate markets. Topping the charts was Manila, Philippines, boasting a remarkable 26% surge, partly driven by investors seeking refuge from Hong Kong and China. Dubai followed closely with a substantial 16% price increase, trailed by the Bahamas at 15%, and Portugal’s Algarve region at 12%.
However, amidst these successes, some markets experienced setbacks. New York saw a 2% decline in prices, while San Francisco remained relatively stagnant with a mere 0.5% increase. The most notable decline among prime markets worldwide was observed in Oxford, U.K., witnessing an 8% decrease.
According to Bailey, affluent American buyers are increasingly exploring opportunities abroad. They have emerged as the primary foreign investors in ultra-prime properties in London, those valued above $10 million, and are showing growing interest across Europe.
“They’ve become quite a big presence, so much more noticeable now in Italy, France, and Portugal particularly than they were,” noted Bailey. “I think the American buyers have become much happier to explore and kind of think about alternatives.”
Nevertheless, the purchasing power of $1 million has diminished both in the United States and internationally. In Monaco, renowned as the world’s most expensive real estate market, $1 million secures a mere 172 square feet of prime property. Aspen offers 215 square feet for the same price, while Hong Kong provides 237 square feet, making New York appear relatively affordable with 367 square feet.
