The Trend Report - Coldwell Banker Global Luxury
A survey of affluent buyers, as well as an analysis of top markets and wealth data from Wealth-X, finds that some buyer priorities have changed, but the luxury market as a whole remains resilient.
The luxury real estate sector experienced an unprecedented, pandemic-induced boom in 2020 and 2021, but demand has softened in light of rising interest rates and inflation.
Real estate is still seen as a good long-term investment, and luxury single-family homes have seen appreciation of 60% since 2017.
Affluent buyers are looking for real estate options that offer stability while allowing them to diversify their investments, such as homes in established luxury centers or in locations less affected by climate change and extreme weather.
72% of the high-net-worth survey respondents who are considering a home purchase in the next few years are looking for a second home.
Bigger is no longer better: Buyers are looking at smaller second homes and investment properties. Luxury homes ranging from 2500-3500 square feet sold 18.6% faster than homes in the 4500-5000 square foot range.