Record Year in Luxury Real Estate Says Christie’s International Real Estate
Christie’s International Real Estate released a recent study on luxury real estate and 2014 was a year for the record books. Combining both luxury properties that were either listed or sold, the total exceeding $100 million was the highest ever!
The Christie’s International Real Estate report is clear – $100 million has now arguably become the billionaire benchmark price point for ultra-rich properties. This achievement level was driven by the sharp increase in global billionaires.
The research from Christie’s International Real Estate included the world’s top 10 cities for elite properties. The report also looked at 70 additional regional markets with a goal of understanding the key dynamics in the luxury real estate around the world.
During 2014, large cities such as New York, Paris and Sydney remained very strong but started to stabilize a bit. The leader as the hottest luxury market is Toronto, Canada. Toronto was the only city studied that experienced a 37% year over year increase in luxury home sales.
Dan Conn is the chief executive officer of Christie’s International Real Estate and stated, “Whether for safe storage of wealth, lifestyle upgrades or the pure passion of the investment, the intrinsic recognition of the sheer value of prime property ownership could not be stronger among these consumers.”
Second home resort markets were also sizzling last year. This segment led the luxury property sales growth. High net worth people not only drove strong primary home sales, but also pushed the secondary home markets.
Dubai was the most popular city ranked for second home purchases with 75% of total sales. Also showing strong second home sales were London at 44% and Miami with 40%.
Traditionally, $1 million and higher was the benchmark for the luxury real estate industry. According to Christie’s International Real Estate, this segment was 16% higher than in 2013.
If you want to go for the priciest markets, look to Beverly Hills, California and London, England. $2 million is the average starting price per square foot around the world. But in Beverly Hills and London, that starting price is a lofty $8 million.
Another key measure reported by Christie’s International Real Estate was price per square foot. The highest value found anywhere for a luxury home was in Cote d’Azur. Known as the French Riviera, this gorgeous area of France is found on the Mediterranean coast was the highest at a staggering $22,577 per sq. ft.
Although the real estate market crashed last decade and devastated home owners and economies around the world, it’s definitely rebounded very strongly. Based on the high-end luxury market results reported by Christie’s International Real Estate, money is pouring in like never before.