In the United States, growth in the luxury housing market is outperforming most other real estate
Luxury Real Estate Prices Surge in 2024, Led by Asia and the Middle East 🌍🏡
The global luxury real estate market experienced significant price increases in 2024, with Asian and Middle Eastern nations leading the charge. Despite persistently high interest rates discouraging many from investing in new properties, this year’s Wealth Report from Douglas Elliman and Knight Frank highlighted a notable surge in premium property values.
Seoul, Manila, and Dubai Lead Global Growth 📈
Among the cities witnessing remarkable growth, Seoul, South Korea topped the list with an impressive 18.4% increase in luxury real estate values. Close behind, Manila, Philippines, recorded a 17.9% rise, while Dubai, UAE, followed with a 16.9% jump—solidifying its reputation as a thriving hub for luxury investments.
Luxury Resort Markets Thrive in the U.S. 🇺🇸
In the United States, luxury resort housing continues to outperform other segments despite inventory shortages. Since the onset of the COVID-19 pandemic, demand for resort properties has remained strong, driving significant price hikes.
Nowhere is this trend more evident than in Palm Beach, Florida, where real estate values have soared 117% since the end of 2019. Just last month, an heir to the Estée Lauder fortune made headlines by selling two vacant Palm Beach waterfront parcels for $200 million.
Experts suggest that Palm Beach’s growth has been influenced by its increasing global recognition and high-profile residents, including former U.S. President Donald Trump, whose Mar-a-Lago estate has drawn attention to the area.
🗣️ “We’ve seen a major surge in international buyers, significantly expanding the pool of potential investors. Palm Beach is now on the world stage,” said Margit Brandt of Premier Estate Properties in a statement to Mansion Global.
Meanwhile, in stark contrast to Palm Beach’s coastal luxury, Aspen, Colorado, has also experienced strong demand, with luxury home values climbing 8.9% in 2024—the second-fastest growth rate among U.S. markets. Industry analysts attribute this trend to a post-pandemic emphasis on health and wellness, making Aspen’s serene ski community highly desirable.
Western Markets Lag Behind as Interest Rates Remain Key Factor 💰
Despite strong performances in select locations, Europe and North America struggled to match the pace set by their Asian, Middle Eastern, and Latin American counterparts. Analysts cite ongoing economic uncertainty and elevated interest rates as primary factors holding back these markets.
🔍 “Interest rates remain the key factor influencing prime markets. While central banks have started cutting rates more than raising them over the past year, debt costs are still high compared to 2022,” noted Liam Bailey, Global Head of Research at Knight Frank.
💡 While the direction looks promising for property values, Bailey emphasized that further interest rate reductions in 2025 will be necessary to sustain market momentum.
Explore the Hottest Luxury Real Estate Markets of 2024 🔥🏙️
As global luxury property trends continue to evolve, certain destinations stand out as prime investment opportunities. Stay ahead of the market and discover where high-net-worth buyers are focusing their attention this year!
