Luxury real estate market: stability and high demand

During a pandemic and an unstable economic situation around the world, the luxury real estate market is showing good growth. In 2020, the average cost of premium class housing in large metropolitan areas of the world increased by 0.5%. A stable increase in prices is observed in 64% of cities.

Reasons for such an increase:

• After transitioning to remote work, more and more residents of various countries began to choose comfortable houses or large apartments to live in. They are not tied to a specific place of work, and they prefer to live as comfortably as possible, even during the quarantine period. Suburbs, coastal zones and other places with a relatively moderate rhythm of life are in high demand.
• Many foreign investors have thought about purchasing real estate in countries where quarantine measures are less strict.
• Due to the increasing demand for short-term rental of luxury villas or apartments, many investors have decided to invest their funds in the purchase of such real estate.

In addition, faced with an unstable economic and political situation around the world, many of those who previously rented housing or simply did not want to buy one, have finally decided to purchase real estate. Thanks to this, demand has grown, which has led to a stable increase in prices.

What is the current situation with prices?

US cities take one of the leading places in terms of the cost of purchasing luxury real estate. For example, New York is the 2nd most expensive city in the world. The fastest rise in prices is in Los Angeles and Miami. In Europe, a notable increase is demonstrated by Berlin. Also among the leaders in terms of price and popularity are London, Paris and Dubai.

Now you can buy a comfortable villa in Miami by spending a few million dollars. You will have to pay about 20 million dollars for an apartment in New York. Buying apartments in Europe is a bit less expensive. For a penthouse in Berlin today you need to pay about 5 million USD. An elite house can be bought for up to 2 million USD. The cost of apartments in London largely depends on the area where they are located. Average prices here are 2-6 million USD. Those wishing to invest in profitable commercial real estate can purchase hotels in the central regions.

The United Arab Emirates has long attracted many investors who want to purchase residential real estate in a country where you can go to a resort all year round. It will be possible to buy an apartment here at a price of 3 million dollars.

According to industry experts, prices will continue to grow, which is due to the gradual stabilization of the world economy.