NASSAU, Bahamas (PRWEB) June 04, 2015
“Trophy” has become the new buzzword in luxury real estate. According to a just-released study by Christie’s International Real Estate— the world’s leading luxury residential network of which HG CHRISTIE LTD is an exclusive affiliate — more properties than ever before were both sold and listed for sale at US$ 100 million or higher in 2014. As the number of billionaires globally reached new heights, so too did the price benchmarks for their trophy homes, as the world’s most affluent focused more and more on acquiring “collectable” residential assets in prized locations across the globe. US$ 100 million is now firmly established as the billionaire benchmark for ultra-prime property.
At the more traditional luxury residential real estate price segments, the overall market experienced steady growth in 2014, with US$ 1 million plus home sales up by an average of 16 percent over 2013 in the 80 luxury residential markets surveyed for the report. Titled Luxury Defined, the third annual edition of the research paper not only examines the world’s top 10 cities for prime property, but also analyzes an additional 70 key regional markets, exploring the dynamics and drivers shaping the globe’s high-end real estate market. Key findings from the white paper revealed that second home resort markets were red hot in 2014, leading the growth in luxury property sales.
The report provides insight into many of the world’s luxury residential markets and additional global highlights from Luxury Defined include:
2014 welcomed a return to normality in most major cities with growth showing signs of stabilizing in locations such as Paris and New York.
Toronto ranked as the world’s “hottest” luxury market, and was the only location to see a faster year-on-year pace with a 37 percent increase in luxury home sales.
As millennials grow up and baby boomers transition into life as empty nesters, these buyers are increasingly seeking urban amenities. This helped fuel growth in high-value urban market sales, particularly in metropolitan cities, which jumped by 15 percent over 2013.
Second home markets led the growth of high-value sales in 2014, with “Jet set destinations” recording on average a 28 percent year on year increase, fueled by attractive investment opportunities, below market-peak prices, and a confidence that the market has bottomed and a recovery is well under way.
International second home buyers are driving market growth, particularly in Marrakech and Turks & Caicos, where 100 percent of top end purchasers are from overseas.
Dubai ranks as the most popular city for second home purchases amongst global HNWIs, who accounted for 75 percent of sales. Meanwhile, 44 percent of the sales in London and 40 percent in Miami were international second home purchases.
The highest price-per-square-foot achieved in 2014 for a luxury home was recorded in Cote d’Azur at US$ 22,577 per-square-foot.
The average starting price for a “luxury home” worldwide is US$ 2 million. London and Beverly Hills have the highest price entry points at US$ 6 million and US$ 8 million, respectively.
“More than ever before, we are focusing on the purchasing patterns of ultra-affluent individuals – as well as what’s driving their investments across the globe — and why the acquisition of luxury real estate has become increasingly important to their portfolios,” said Dan Conn, CEO, Christie’s International Real Estate. “Whether for safe storage of wealth, lifestyle upgrades or the pure passion of the investment, the intrinsic recognition of the sheer value of prime property ownership could not be stronger among these consumers.”
“Here in The Bahamas, we are also witnessing the same surge in activity and demand for fine luxury properties. Our private island market is vibrant and established high-end communities throughout The Bahamas are enjoying being a coveted component of prestigious investment portfolios,” agrees John Christie, CEO/VP of HG Christie Ltd. “Happily, current projects underway across The Bahamas will ensure our continued ability to satiate the appetite of high net worth investors, especially those seeking impressive luxury real estate holdings in a stunning tropical location, for quite some time.”
Contrary to other research real estate studies, Luxury Defined not only comprises standard luxury property market measurements – such as top sale prices, volume of luxury home sales, average sale prices, etc. — but also establishes benchmarks by sub-market in order to assess trends among truly comparable homes.
The study also includes a chart highlighting what US$ 5 million buys around the world as well as a spotlight on magnificent art and luxury goods and their high-end real estate equivalents.
Christie’s International Real Estate is wholly owned by Christie’s and is committed to its core values of expertise in marketing luxury assets, exemplary client service, and discretion. The Luxury Defined study can be accessed at http://www.christiesrealestate.com/luxury-defined
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About Christie’s International Real Estate
Christie’s International Real Estate is an invitation-only affiliate network composed of the world’s most proven and qualified real estate specialists in the luxury residential sector. The company has offices in London, New York, Hong Kong, Beverly Hills, and Palm Beach, and 140 global affiliates with 32,000 real estate professionals in 46 countries. For additional information about Christie’s International Real Estate, please visit http://www.christiesrealestate.com.
About HG Christie Ltd.
HG Christie Ltd. is the most extensive and oldest real estate company in the Bahamas; offering sales, rentals, appraisals, and property management. The exclusive Bahamas affiliate of the prestigious Christie’s International Real Estate Network and founded in 1922 by the legendary Sir Harold George Christie, this esteemed brokerage proffers an incomparable selection of property listings from across the islands of The Bahamas inclusive of luxury estates, affordable homes and condos, vacation villas, beachfront and development properties, as well as private islands. With seven offices strategically located throughout The Bahamas, inclusive of Nassau, New Providence; Freeport, Grand Bahama; Governor’s Harbour, Eleuthera; George Town, Exuma; Marsh Harbour and Hope Town, Abaco, as well as representation in San Salvador, Andros and Cat Island. The skilled team of HG Christie licensed agents are steeped in experience, local knowledge and are recipients of numerous awards and accolades within their industry. http://www.HGChristie.com
Israel Kreps
Kreps DeMaria
ikreps(at)krepspr(dot)com
+1 305 663 3543
Tania McNally
Luchford APM
tania(dot)mcnally(at)luchfordapm(dot)com
+44 (0)20 7631 100
Michael Sherman
Christie’s International Real Estate
msherman(at)christies(dot)com
+1 212 974 4585
Bettina Thompson
HG Christie Ltd
bettina(at)hgchristie(dot)com
+1 242 322 1041