11. June 2018
Global Luxury Homes Sales Grow
According to a report by the Christie’s International Real Estate network, there was a 11% year-on-year growth in luxury homes sales in 2017. The upward trend continues this year.
Christie’s International Real Estate published Luxury Defined, an annual report, which surveys the international high-end property market. Luxury Defined includes a detailed analysis of the data provided by more that 80 high-end real estate companies from all over the world including Svoboda & Williams, which are affiliates of the Christie’s network.
According to Luxury Defined, the sale of luxury homes (with a $1 million-plus price tag) increased by 11% year-on-year in 2017. The year-on-year growth in 2016 was only 1%, a year before 8% while in 2014 it amounted to 16%. In comparison, Svoboda & Williams recorded a 19% year-on-year growth of sales of this kind of properties last year and a 23% year-on-year growth in 2016.
The demand for premium properties has been driven by healthy macroeconomic influences and related optimistic expectations of future development, according to the Christie’s report. The worldwide economic growth also contributes to the swelling of the population of potential buyers: according to the Forbes, the number of billionaires has grown by 259 to the record 2208 in the last year and their combined net worth rose to $9.1 trillion – up from 18% in 2017.
Growing demand within this limited segment is evidenced by the decline in the time needed to sell a prime property. While the average period on the market for luxury homes was 160 days in 2016, last year they sold in 146 days on average, states Luxury Defined. According to the data of Svoboda & Williams, there has been a drop from 210 days in 2016 to 175 days last year. However, truly exceptional properties find their new owner faster.
The Christie’s survey also revealed that there has been a worldwide decrease in luxury homes (with a $1 million-plus price tag) purchased with cash. 29% of luxury homes were bought with cash in 2017, a decline from 36% in 2016 and 44% reported in 2015.
Svoboda & Williams portfolio includes premium properties in Greece, Portugal, Switzerland and France that are offered in co-operation with Christie’s International Real Estate.