Global Luxury Home Prices to Grow More Than Expected in 2024

Prices are set to rise 2.4% in 2023, up from a prediction of 1.7%, while 2024 could see 2.5% growth!

Despite significant economic and geopolitical headwinds, luxury home prices in 2024 are now predicted to grow more than previously expected. “Some prime buyers appear confident that the worst is now behind us,” on the demand side, with inflation receding and interest rate hikes entering their final chapter, buyer appetite has strengthened in some markets.”

Supply could remain limited, however, giving prices a boost. We’re seeing a reluctance among mortgaged households to move, plus high construction costs, persistent labor shortages and planning delays collectively contribute to a shortage of new stock entering the market. 

In addition, 2023 saw a surge in cash buyers. Our global research network reports that 52% of prime buyers are now opting for cash purchases, an increase from 46% six months ago. 

Dubai has had a banner year in 2023, with final annual luxury price growth predicted to reach 14%, the data showed. Madrid took the second spot in the list of top performers with 6.5% price growth, followed by Stockholm (5%), Seoul (4.5%), and Miami (4%). Each city is either rebounding from recent price declines or experiencing robust wealth migration. London and Edinburgh were at the bottom of the list in 2023. Auckland was also in the bottom three, but the city is set to see a turnaround in 2024.

The New Zealand city is in line to lead price growth next year, with luxury home prices expected to rise around 10%, the figures showed. “This surge is best understood as a market correction, compensating for a previous peak-to-trough dip of 20%,” as report stated. 

Dubai’s prime price growth is predicted to drop to around 5%, landing it third on the ranking.  Madrid and Stockholm are set to see prices grow 5% and 4.5%, respectively. Their relative affordability, high quality of life and no restrictions for overseas buyers are key factors in its anticipated growth.