The greatest and worst luxury real estate markets for 2023 are expected!
According to a fresh new report, wealthy investors who are betting on luxury real estate may profit best by utilizing depositing their money in Dubai or Miami next year. According to real estate consultant Knight Frank, Dubai topped a list of the top 25 most affluent or “top” real estate markets, with prices expected to rise 13.5% in 2023. Miami came in second, with costs expected to increase by 5%. Dublin, Lisbon, and Los Angeles were next, each of which was anticipated to grow by 4%.
Seoul and London are expected to do poorly over the next 12 months, with charges expected to decline by 3% in each city. New York came in at number 13 and was positioned in the middle of the pack. Prices are expected to increase by 2% in the coming year. Even the most robust luxury markets, however, are expected to cool down the next year as interest rates rise and economies weaken, according to Knight Frank. Knight Frank has amended its earlier projection of 2.7% for the cost of living in each of the 25 towns’ cities and towns to a median increase of 2% in 2023.
The revision shows that the world’s wealthy, who are supposedly immune from inflation and economic slowdowns, are delaying major real estate purchases or becoming more price-sensitive in light of rising interest rates. Although top markets are better protected from the effects of higher lending rates, they are no longer exempt, according to the report. “In most top residential markets, the shift from a seller’s to a buyer’s marketplace is already underway.”
Dubai had a 50% spike in prices in 2022, thus the rate hike for 2023 will signal a significant slowdown. Over the past year, Dubai has seen a rise in the number of wealthy residents, driven in large part by Russians looking for a secure harbor for their riches, yachts, and real estate despite Western sanctions over the conflict in Ukraine. While the average income level increased 73% over the previous year, prices for single-family homes in Dubai increased 13% in October.
Miami continues to be a popular sanctuary for the wealthy due to its low tax rates and expanding number of financial businesses with offices or headquarters in South Florida. Although the 2% growth that New York is expected to have in the coming year is down from 2022, many agents predict falling prices, particularly in Manhattan. According to Knight Frank, consumers from other countries that are “seeking for more, instead of less, exposure to the U.S. dollar as the Federal Reserve cranks up rates” will benefit New York.
According to the data, Singapore is the best Asian city in the top 10 and is unquestionably one of the best four cities whose prognosis has improved over the past six months. Wealthy Chinese people are moving their money—and sometimes their families—to the island to escape tight Covid lockdowns and a faltering economy, which is helping Singapore.
According to Knight Frank, cash may be king throughout the 25 marketplaces since buyers who choose to pay in all coins may be more alluring to sellers. In many countries, political and economic instability may also lead to a flight to safety in real estate, “driving clients to mature and evident luxury markets.”
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
