A report by Knight Frank indicated a significant decrease in the sales of ultra-luxury homes, with revenues in the $10 million-plus category dropping 18 percent globally in the lead-up to the U.S. presidential election. While markets like Palm Beach and Miami experienced severe declines, London registered a slight increase in sales. Concurrently, many American millionaires are considering moving abroad due to political uncertainty.
According to a report by Knight Frank, a London-based real estate consultancy, the ultra-luxury real estate market experienced a significant decline globally during the third quarter of 2024, as potential buyers paused their searches in anticipation of the upcoming U.S. presidential election. The report highlights an 18 percent decrease in the volume of sales of properties priced above $10 million, totaling 406 transactions, and a 17 percent decline in overall sales value compared to the previous quarter.
The report particularly noted the notable effects of American political uncertainty on domestic markets. For instance, Palm Beach in Florida recorded its lowest sales figures since late 2022, reflecting the cautious behavior of wealthy buyers. Miami also faced a dramatic situation, with a staggering 60 percent drop in the number of luxury property transactions relative to the same period last year. Globally, Dubai’s ultra-luxury market saw a significant 40 percent decrease in sales compared to the prior year.
In stark contrast, London emerged as a bright spot in the report, registering an increase in sales, which rose from 47 in Q2 to 51 in Q3, attributed to a favorable budget proposed by the new Labour government. However, it remains below its pre-pandemic average of approximately $1.5 billion in quarterly sales.
As a result of this political and economic climate, there has been a noticeable uptick in American millionaires contemplating relocating abroad, with a significant portion indicating a willingness to invest in overseas properties or funds. A survey by Arton Capital revealed that over half of U.S. millionaires expressed intentions to leave the country after the election, regardless of its outcome. A particularly high number of younger millionaires, aged 18 to 29, are considering obtaining golden visas facilitated by international investments.
The ultra-luxury real estate market is heavily influenced by global events, particularly political dynamics in the United States. Prior to elections, there tends to be a cautious approach among high-net-worth individuals regarding significant financial decisions, such as purchasing luxury properties. The findings presented in Knight Frank’s report illustrate how economic constraints interwoven with political uncertainty can dramatically impact sales across worldwide real estate markets, with varying consequences in different locales.
In summary, the ultra-luxury real estate market has witnessed a substantial decline as wealthy buyers adopted a wait-and-see approach ahead of the U.S. presidential election. While major markets like Palm Beach and Miami faced dramatic downturns, London experienced a slight increase in sales. Furthermore, the findings indicate a significant trend among American millionaires considering relocation, reflecting broader sentiments of uncertainty that accompany electoral politics. This period showcases the correlation between international events and the ultra-high-net-worth real estate sector.
Original Source: robbreport.com
