A recent report indicated a sharp decline in sales of ultra-luxury homes, exceeding $10 million, globally in anticipation of the U.S. presidential election. High-profile markets in the U.S. such as Palm Beach and Miami reported significant drops in transactions, while Dubai also faced a 40 percent decrease. Conversely, London saw a slight increase in luxury sales. This political climate has prompted many wealthy Americans to consider relocating abroad.
Sales of ultra-luxury homes, specifically those exceeding $10 million, saw a significant decline across various global markets in the third quarter of 2024. A report from the London-based real estate consultancy Knight Frank indicated that prospective buyers paused their searches in anticipation of the U.S. presidential election. Analysis of 12 key markets revealed a total of 406 transactions in this price range, marking an 18 percent decrease in volume and a 17 percent reduction in total value from the previous quarter.
In the U.S., heightened political uncertainty noticeably impacted sales, with prominent markets such as Florida experiencing stark declines. Palm Beach recorded the lowest number of high-end sales since late 2022, totaling merely 16 transactions, while Miami reported 23, reflecting a drastic 60 percent drop compared to the same quarter the previous year. Conversely, Dubai’s luxury market also suffered, experiencing a 40 percent fall in sales compared to the previous year.
Interestingly, London stood out as an exception among the surveyed markets, with a modest increase in ultra-luxury sales, rising from 47 in the second quarter to 51 in the third quarter. This uptick was attributed to government budget changes under the new Labour administration; however, sales figures remain below pre-pandemic averages.
The political climate in the U.S. has prompted many wealthy Americans to consider relocating abroad. A survey conducted by Arton Capital revealed that over 50 percent of U.S. millionaires expressed intentions to leave the country following the election, irrespective of the election outcome. Furthermore, 64 percent of younger affluent individuals, aged between 18 and 29, were exploring options for obtaining golden visas through foreign investments. As Armand Arton noted, “The love affair between Americans and Europe has been going on for very long time.”
The luxury real estate market serves as a critical economic indicator, often reflecting broader economic trends and political climates. In recent months, particularly leading up to major political events such as elections, consumer behavior in high-end property markets can shift dramatically. Wealthy buyers are usually more sensitive to economic and political uncertainties, leading to decreased activity in purchasing high-value real estate during uncertain times. Reports from reputable real estate firms such as Knight Frank provide valuable insight into these market shifts and the underlying factors that drive buyer sentiment in ultra-luxury markets.
In conclusion, the decline in sales of homes priced above $10 million globally can be attributed to the lingering uncertainties surrounding the upcoming U.S. election. While most markets, especially in America and Dubai, experienced notable reductions in transaction volumes, London showed resilience with a slight uptick in luxury sales. Furthermore, the reported intentions of affluent Americans to emigrate underscore the overarching impact of political factors on high-value real estate dynamics.
Original Source: robbreport.com
