Global Sales of Ultra-Luxury Homes Decline Ahead of U.S. Election

A recent report shows that ultra-luxury home sales over $10 million have declined worldwide by 18% in the third quarter 2024, largely due to uncertainties linked to the U.S. presidential election. Significant reductions were observed in key markets such as Miami and Dubai, while London was an exception with a slight increase in sales. Additionally, many wealthy Americans are contemplating relocating abroad regardless of the election results, reflecting a trend towards international investments.

Recent findings indicate a notable slowdown in the global ultra-luxury real estate market, particularly in the period leading up to the U.S. presidential election. A report by Knight Frank revealed that the number of transactions exceeding $10 million dropped by 18% globally in the third quarter, with total sales falling to 406 properties. This downturn was especially pronounced in major U.S. markets, with Palm Beach and Miami experiencing significant declines in super-prime home sales.

In Miami, there were only 23 notable transactions, reflecting a staggering 60% decrease from the same quarter in the previous year. Conversely, markets outside the United States faced similar challenges, with Dubai witnessing a 40% reduction in luxury home sales during the same timeframe. Interestingly, London was the sole market to display growth—rising from 47 to 51 sales over the same period, attributed to favorable governmental fiscal policies.

The report also divulged an increase in the number of affluent Americans contemplating relocation after the election, which underscores the prevailing sense of uncertainty regarding the political landscape. A survey indicated that more than half of U.S. millionaires are considering moving abroad regardless of the election outcome, with younger millionaires particularly inclined to secure residency through investments in foreign properties. The ongoing trend of American investments in European real estate continues to flourish despite the challenges present in local markets.

The ultra-luxury real estate sector, characterized by home sales exceeding $10 million, has been significantly influenced by global political and economic factors, particularly the impending U.S. election. The report by Knight Frank indicates that buyers have paused their searches for high-end properties, resulting in a marked decline in sales volume and value. This cautious sentiment pervades numerous affluent markets worldwide, driving an uptick in potential relocations as affluent individuals seek stability abroad.

The findings presented by Knight Frank illustrate a pervasive decline in the ultra-luxury real estate market globally, primarily attributed to the uncertainty surrounding the U.S. presidential election. Major U.S. markets are witnessing substantial sales decreases, with emerging patterns indicating an inclination among millionaires to consider international relocation. This trend highlights the interconnectedness of global real estate markets and the profound impact of political climates on investment decisions.

Original Source: robbreport.com