The global luxury real estate sector is cooling down. The latest data from real estate agency Knight Frank indicates, for example, that in the third quarter of 2024, the volume and number of units sold fell in 12 international markets.
This is according to the Global Super-Prime Intelligence report, which refers to the “super-prime” (super-luxury) market, i.e., the sale of properties worth more than $10 million. According to the report, there has been a slowdown in this market, with an 18% drop in volume and a 17% drop in value compared to the previous quarter.
The “super-prime” market in Dubai stands out, with a 40% annual decline in sales during the third quarter. Even so, sales remain high compared to pre-2021 levels, highlighting a shift to more sustainable growth after a pandemic-driven surge.
Liam Bailey, global head of research at Knight Frank, believes that the “slowdown in global price growth reflects the international political and geostrategic context.” However, he is convinced that “the wave of interest rate cuts expected in 2025 could support further growth in house prices in the medium term.”
Focusing on the domestic market, Francisco Quintela, founding partner of Quintela e Penalva, Knight Frank's partner in Portugal, adds that: “cities such as Lisbon and Porto, the Algarve region, and areas such as Estoril, Cascais, and Comporta continue to be very attractive markets for foreign investment.” This is due to the country's “economic and political stability,” which “has sent positive signals to foreign markets,” attracting national and international investors, he explains.
Source: Idealista.pt