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According to The Wealth Report, edited by Knight Frank, London and New York will remain important cities for the world’s wealthy in 2022, with more top-notch real estate deals (25 million than any other global market) in 2022. $ or more) is occurring.
About 43 deals above this level were made in each city last year, with London seeing a 26% increase in sales compared to 2021, while New York saw a 35% decrease.
Ultra Prime sales in London reached their highest level since 2014. Los Angeles ranks him third with 39 sales, while Hong Kong (28) and Miami (23) occupy the top five.
Liam Bailey, Head of Global Research at Knight Frank, said: High-end sales are likely to slow down this year, but China’s reopening and continued appetite for lifestyle-driven purchases will support activity. “
The strength of the ultra-prime market in 2022 was underpinned by a wave of new construction completions valued at over US$25 million. In addition, stagnant demand following Covid-19 was also a factor, with several buyers unable to travel to view properties in 2020 and 2021.
Late 2021 and early 2022 saw a number of wealth creation events, including a resumption of M&A activity in global financial centers. This activity supported trading in the first half of 2022.
The pandemic has seen a significant shift in demand to non-urban markets, particularly rural, coastal and mountain markets, but a resurgence of urban markets in the second half of 2021 will likely come as restrictions due to COVID-19 in Europe, the UK and the US coincided with the release of It will last until 2022.
Last year’s London turnover came against the backdrop of the UK introduction of the Foreign Entities Register announced in late February 2022. This regulation requires all overseas entities that own property in the UK to register. profitable owner. This additional level of transparency puts the UK well ahead of other comparable countries in terms of publishing ownership data, and will likely discourage some buyers from entering the UK market in 2022. Speculation abounded.
Bailey continued: “Our data suggest that the introduction of the UK’s Overseas Business Registration regime has not had a negative impact on demand for high-value properties. , compared to other comparable jurisdictions, may not be suitable for all potential investors, but for most the transparency of the market is attractive and the UK’s strong governance It seems to help build reputation.”
wealth report It also reveals the number of deals made in the super prime market ($10 million or more) in 2022, with 1,392 deals exceeding this level across the 10 major global markets analyzed in 2022. was broken. Having broken the 2,076 transaction record set for 2021, he still outperformed the 2019 total by 49%, worth US$26.3 billion in sales.
New York maintained its position as the most active superprime market, with 244 sales over $10 million. Los Angeles and London occupy the top three places with 225 and 223 respectively. The size of the U.S. superprime market is in line with prime price growth, but New York grew just 3% last year, while Los Angeles grew 8% and Miami 22%. .
As with many market segments, trading slowed in the second half of 2022 as the cost of debt rose and recession talk began. However, the decline has been slow, with 44% of transactions taking place in the last six months of the year.
Surprisingly, European cities were the most resilient. Superprime sales grew in both Geneva and Paris, while London sales fell slightly, just two less than in 2021.
Flora Harley, research partner at Knight Frank, said:“After the anomaly of 2021, 2022 was a year of transition. While some pandemic trends continued, mounting headwinds prompted others to ponder their assets and investment strategies. In 2023, trading levels will return to pre-pandemic levels, down from the last two years, but still very active, so this normalization process is likely to continue.”
High-end activities:
Sales in 10 Super Prime ($10M+) and Ultra Prime ($25M+) Market Segments Worldwide
city | super prime | ultra prime |
London | 223 | 43 |
new york | 244 | 43 |
Los Angeles | 225 | 39 |
Hong Kong | 125 | 28 |
Miami | 146 | twenty three |
Singapore | 121 | 18 |
Palm Beach & Broward | 117 | 18 |
Geneva | 69 | 16 |
sydney | 99 | 7 |
Paris | twenty three | 6 |
$1 billion total volume | 26.3 | 9.8 |
Source: Knight Frank Research, Douglas Elliman, Naef Prestige, HM Land Registry, LonRes
Exchange rate calculated at 30th December 2022