Sotheby’s International Realty released the 2024 Mid-Year Luxury Outlook, analyzing trends shaping high-end residential real estate markets worldwide for the rest of the year.
Today, Sotheby’s International Realty unveiled the latest edition of its esteemed Luxury Outlook℠ report. The 2024 Mid-Year Luxury Outlook offers an in-depth analysis of the dynamics and trends shaping the high-end residential real estate markets worldwide for the remainder of the year.
Notable insights from the report include :
Nearly half of the global voting-age population will be eligible to vote in 2024. This encompasses over four billion people across nearly 80 nations, collectively contributing to over 60% of the world’s GDP.
Traditionally, the housing market tends to decelerate during presidential election years. Conversely, a sense of political stability often positively influences market activity.
While real estate professionals globally are mindful of political shifts, their primary focus remains on interest rates.
Industry experts predict that the Federal Reserve will reduce rates later this year. The Mortgage Bankers Association forecasts a decline in rates to approximately 5.9% by 2025, while Wells Fargo projects a similar rate of 6%.
The advocacy for cities to be thoughtfully designed continues to evolve, emphasizing that significant cultural investments are crucial to vibrant urban environments globally.
According to data released in March 2024 by the National Endowment for the Arts and the Bureau of Economic Analysis (BEA), the economic contribution of the arts and cultural industries in the United States reached unprecedented levels in 2022, accounting for 4.3% of GDP, or $1.1 trillion, bolstering the U.S. economy significantly.
The report also highlights that affluent buyers are increasingly seeking properties that offer not just luxury, but also sustainability and wellness features. There is a growing demand for homes equipped with green technologies, wellness amenities, and those located in environmentally-conscious communities.
Furthermore, the influence of technology on the luxury real estate market cannot be understated. Virtual tours, AI-driven property recommendations, and blockchain for secure transactions are transforming how high-end properties are bought and sold, making the process more efficient and transparent.
Overall, the 2024 Mid-Year Luxury Outlook underscores the intricate interplay between political, economic, and technological factors in shaping the future of luxury real estate.
Click here to read the complete report.
