A recent report by Knight Frank indicates a significant decline in ultra-luxury real estate sales globally in Q3 2024, largely due to U.S. election uncertainty. Sales of properties priced above $10 million fell by 18 percent in volume and 17 percent in value. American markets reported no increases, while London showed slight growth. Many U.S. millionaires are contemplating moves abroad post-election.
Recent findings from Knight Frank, a London-based real estate brokerage, indicate that the international ultra-luxury real estate sector experienced a significant downturn in the third quarter of 2024, coinciding with the lead-up to the U.S. presidential election. High-end property sales priced at $10 million and above fell sharply, registering 406 transactions—a decrease of 18 percent in volume and a 17 percent dip in value from the previous quarter. Buyers appear to have hesitated in making significant investments, largely due to the uncertainty surrounding the election outcomes.
In the United States, the ultra-luxury market was adversely affected, with no uptick in sales reported across five major American markets. For instance, Palm Beach, Florida, saw its lowest figures since 2022, with merely 16 super-prime deals recorded in the third quarter. Miami faced an even steeper decline, with sales plummeting by 60 percent compared to the same time last year.
Internationally, Dubai, recognized for its active ultra-luxury sector, experienced a noteworthy 40 percent reduction in sales from the previous year’s third quarter. Surprisingly, London was the sole market among the 12 reviewed that saw an increase in ultra-luxury sales, rising from 47 in the second quarter to 51 in the third, attributed to the favorable impact of the new Labor government’s budget. However, the British capital is still below its pre-pandemic averages of $1.5 billion in quarterly sales.
Amidst this climate of political and economic uncertainty, there has been an observable trend of U.S. millionaires contemplating relocation abroad. A survey conducted by Arton Capital revealed that over half of the surveyed affluent individuals in the U.S. expressed intentions to leave the country after the election, regardless of the electoral outcome. Additionally, a significant proportion of younger millionaires (ages 18 to 29) demonstrated interest in obtaining overseas golden visas through investment. This trend highlights a long-standing attraction of Americans to European opportunities, even if it involves substantial financial commitments.
The ultra-luxury real estate market is typically characterized by high-value residential properties, often selling for $10 million or more. Various factors, such as political events, economic indicators, and market stability, significantly influence buyer confidence and propensity to invest. The global slowdown reported by Knight Frank reflects the broader economic uncertainty created by the approaching U.S. presidential election, which has caused potential buyers to approach their acquisitions with caution. The varying trends across different international markets underscore the complexity and variability of the real estate sector, particularly in the luxury segment, as consumers respond to geopolitical dynamics.
In summary, the Knight Frank report reveals a slowdown in the ultra-luxury real estate market across the globe, largely influenced by the political uncertainty surrounding the U.S. presidential elections. While the American luxury markets have particularly suffered, interestingly, London has defied the trend with increased sales. The overall decrease in high-value transactions may encourage affluent individuals, especially younger ones, to consider relocating and investing abroad as they navigate these uncertain times.
Original Source: robbreport.com
