Sales of homes priced at $10 million and above declined 18 percent globally leading up to the U.S. election, driven by buyer uncertainty. Notably, U.S. markets like Palm Beach and Miami face significant decreases, while London sees modest growth. Many affluent Americans are contemplating moves abroad amid political concerns.
The ultra-luxury real estate market experienced a notable decline prior to the U.S. presidential election, as wealthy buyers hesitated to make significant property purchases. A recent report by Knight Frank, a London-based real estate consultancy, revealed an 18 percent drop in sales of homes priced over $10 million across 12 global markets, totaling 406 transactions. Additionally, the total value of these sales fell by 17 percent compared to the previous quarter.
The report highlighted the impact of political uncertainty, particularly in five American markets where no sales increases were recorded. For instance, Palm Beach saw its lowest sales figures since late 2022, with only 16 ultra-luxury deals in the third quarter, while Miami’s trophy home sales dropped by an alarming 60 percent compared to the same period last year.
On a global scale, Dubai reported a staggering 40 percent decline in ultra-luxury sales for the third quarter of 2024 compared to the same period in the previous year. Interestingly, London stood out as the only city among the 12 analyzed to witness an increase in $10 million-plus sales, rising from 47 to 51 transactions from the prior quarter, attributed to fiscal policies initiated by the new Labour government.
In light of the U.S. political and economic climate, many affluent Americans are contemplating relocating abroad. A survey conducted by Arton Capital indicated that over half of U.S. millionaires may consider leaving the United States after the election. Among younger affluent individuals aged 18 to 29, 64 percent expressed interest in obtaining golden visas through overseas investments. Armand Arton of Arton Capital stated, “The love affair between Americans and Europe has been going on for a long time. They are totally fine investing a couple of hundred thousand dollars or a half million into a property or a fund.”
The dynamics of the ultra-luxury real estate market are often influenced by global and domestic political events. Historically, uncertainty surrounding major elections tends to result in cautious decision-making among buyers, particularly in high-value real estate transactions. The analysis presented by Knight Frank underscores these trends, emphasizing how significant political events, such as the upcoming U.S. presidential election, can impact global real estate markets. The report focuses on specific high-value markets and elucidates the shifts in buyer behavior in response to these uncertainties.
In summary, the ultra-luxury real estate market has demonstrated a significant slowdown globally, largely attributed to the uncertainty surrounding the upcoming U.S. presidential election. The 18 percent decrease in sales within the $10 million-plus category serves as a clear indicator of buyer apprehension. While London has managed to experience growth amidst this downturn, markets like Palm Beach and Dubai have seen drastic declines. The migration trends of wealthy Americans seeking opportunities overseas further illustrate the broader implications of political instability on real estate markets.
Original Source: robbreport.com
