The price of luxury properties is projected to experience a global increase of 2.4%, with a growth of 2.5% forecasted for the upcoming year of 2024. Lisbon is in line with this increase.
During the year 2023, Dubai led the predictions with an expected growth of 14%, followed by Madrid (6.5%), Stockholm (5%), Seoul (4.5%), and Miami (4%), as these markets are either recovering from recent price declines or experiencing significant wealth migration.
In 2024, everything changes. Yes, Dubai, which was the leader in price predictions in 2023, is expected to surrender that position to Auckland in 2024.
The Australian city is set to experience a 10% increase in luxury prices. Dubai falls to the third position, with a growth of 5%, the same as Madrid and slightly above Stockholm (4.5%).
There is a moderate optimism among luxury property buyers, who feel that some economic risks are diminishing.
This includes the supply and demand dynamics, with a strong focus on inflation receding and the fact that the rise in interest rates is already decelerating.
Many observers agree that some high-end buyers are confident that the worst is behind us. With inflation receding and the rise in interest rates nearing its end, there is a renewed appetite for different markets.
At the same time, it is worth mentioning that construction costs, persistent labor shortages, and the risk of households taking on new housing credit will continue to contribute to the lack of supply in the market.
Recent studies on the performance of the sector in 2023 also show that the percentage of buyers with a cash-ready profile in premium property sales has increased from 46% to 52% in the last six months.
