America’s Super Wealthy Set Their Sights on Residential Property
According to recent research conducted by our sources, approximately one-fourth of American ultra high net worth individuals – those having a net worth above $30 million – intend to add to their residential property investments this year. These super-wealthy individuals typically already possess around four homes, with about a quarter of these properties situated internationally.
Priorities in Purchasing Property
These high-flying purchasers base their decisions on numerous factors, including lifestyle considerations, investment prospects, tax implications, and security preferences. Despite these investors confronting similar market challenges as all homeowners, the luxury real estate market, particularly the top-tier segment, continues to exhibit resilience with a sound performance.
Luxury Real Estate Performance Amid Market Pressures
Last year, the United States recorded 34 property sales exceeding $50 million. Although this represents a slight decline from the previous year, it represents a significant rise from levels seen before the global pandemic. Assuming interest rates stabilize, experts predict a surge in luxury real estate availability, likely leading to a boosted sales number.
Expected Luxury Market Performances
Our source’s findings forecast Miami to outperform other U.S. luxury markets, projecting a price growth of 4%. New York City and Los Angeles trail closely behind. Looking globally, Auckland, New Zealand, is anticipated to dominate the luxury real estate market with an expected 10% increase in property prices.
Increased Interest in Overseas Investment
The report also indicates a growing trend among ultra-wealthy American individuals investing in foreign properties. The majority of these investments are directed towards the European market. Interestingly, when it comes to real estate prices, Monaco holds the title for the world’s most expensive market. In this tiny nation, just $1 million can purchase a meager 172 square feet of prime property.
Summary
- A quarter of ultra-wealthy Americans plan to buy residential property this year.
- Lifestyle and tax considerations are major factors influencing their purchasing decisions.
- Despite market pressures, the luxury real estate market shows relative resilience.
- Miami is forecasted to experience the highest price growth in the US, while Auckland leads globally.
- Increased interest in overseas properties, notably in Europe, among these wealthy investors.
- Monaco takes the lead as the world’s priciest real estate market.
