Luxury real estate’s global cooling, Q3 2024

Knight Frank's latest Global Super-Prime Property Report highlights a decline in sales of US$10 million+ homes across 12 key markets during Q3 2024. Political and economic uncertainties, particularly in the U.S., have influenced this slowdown. London stood out as the only market to record a quarter-on-quarter rise in transactions, while Dubai and Miami saw significant cooling from previous highs. Despite the decline, these markets underscore the shifting dynamics of luxury real estate as they adjust to post-pandemic realities.

Key Findings:

• Market slowdown: Sales of properties over $10 million across 12 key global markets totalled 406 in Q3 2024, representing an 18% decline in volume and 17% drop in value compared to the previous quarter. This slowdown was notably influenced by political and economic uncertainties, particularly in the U.S.
• London's performance: Among the tracked markets, London was the only city to show a quarter-on-quarter increase in super-prime sales (51 compared to 47 in Q2). This rise was attributed to market activity ahead of the new UK government budget. However, sales remain significantly below the post-pandemic peaks.
• Dubai's cooling momentum: Dubai, which has been a standout market, experienced a 40% year-on-year decline in super-prime sales during Q3. Despite this, sales remain high compared to pre-2021 levels, highlighting a shift toward more sustainable growth following a pandemic-driven surge.
• US Market: US super-prime market performance reflected a desire for greater political certainty post-election. Miami saw a nearly 60% year-on-year drop in sales, while Palm Beach recorded its lowest figures since late 2022, emphasizing the impact of seasonal and political factors.

Read the full report: Knight Frank Prime Global Cities Index Q3 2024.

Pia Arrieta, 10 Dec 2024 - Intelligence - News