Luxury property market grows - despite recession

Luxury property market grows - despite recession

The top of the overseas property market is in rude good health, according to two companies in the high-end sector.

Interest in purchasing luxury properties (valued to be worth above €1m) has increased by an average of 2% in the last 12 months, according to analysis conducted by Luxuryestate.com, the largest online source of high-end properties.

Peaks of 10 per cent more sales enquires for high-end residences have been seen from individuals from countries in extreme economic instability, including Greece and Italy.

This follows on from news just released by high-end real estate agent Engel & Volkers (530 offices in 34 countries) that reported their best ever quarter-year profits int heir 35-year history.

Through the analysis of buyer activity on more than 25,000 listings, spread over 30 different countries, Luxury Estate has been able to identify trends in the demand for luxury properties.

While the largest demand overall comes from individuals from the UK, the countries that have seen the largest increases in demand have been Greece (+8%), Russia (+6%) and Italy (+5%).

“As expected, there is demand from countries which have a large number of high-net-worth individuals as residents, including Russia, Luxemburg, Switzerland, says Silvio Pagliani, President of LuxuryEstate.com (that lists 30,000 homes in 30 countries).

“Our analysis also shows increased number of enquiries from countries going through an economic crisis, with statistics suggesting that many wealthy citizens are looking to invest in luxury property and seeking a safe haven for their assets.

“We found it interesting that there are no Middle Eastern regions named in the list of countries with the most search activity. After looking at the data further, the reason for this became clear; wealthy Middle East buyers are using specialised brokers to purchase properties. In most cases, these are based in London, which contributes to such a high level of demand from the UK.”

There is also data on the most high-end residences for sale. In countries with more stable economies the number of luxury villas, mansions and castles on the market has remained constant or even decreased.

In contrast, countries that are going through a period of continued economic crisis have seen a notable increase in luxury properties on the market in the last year. For example, Italy has the largest offer in Europe and second in the world (14% more than the UK) with an increase of 8% per year, France is fourth with 12% (+4%) and Spain seventh with 3% (+6%).

The countries with the highest (advertised) number of properties for sale are:

United States 15%, Italy 14%, United Kingdom 13 %, France 12%, Germany 4%, Switzerland 3%, Spain 3%, Monaco 2%, UAE 1%, Luxemburg 1%.

Luxuryestate.com provide the easiest and most efficient way to search for exceptional properties around the world, including luxury homes, prestigious estates, classic residences, unique castles and country homes, relying on trusted independent luxury brokerages.

Author

A Place In The Sun