Luxury Portfolio International® Shares 2022 State Of Luxury Real Estate Report

KUALA LUMPUR, Dec 2 -- Luxury Portfolio International® (LPI), the world’s premier network of luxury residential real estate brokerages, has shared the results of its 2022 State of Luxury Real Estate Report (SOLRE).

The study comprises data from individuals in the top one per cent to five per cent income bracket across 20 countries, and touches on a broad range of topics crucial to the global luxury residential real estate market.

Most notably, the LPI report reveals a continuation of dominating home purchasing-related trends that began during Q3 2020 and continued throughout all of 2021, showing that demand for luxury real estate remains high; price increases expected to continue; supply remains lower than demand; time-on-the-market for luxury single-family homes often continues to “last just hours”; and sustainability is ‘Critically Important’ (66 per cent) when considering future home purchases.

The study also shows an increase in the number of affluent sellers of residential real estate worldwide; that among luxury homes buyers, the majority (74 per cent) shared strong feelings of a personal economic confidence and still 75 per cent are significantly concerned that their discretionary spending power could be tested soon.

And while 2022 is expected to continue at a fast pace, there are signs that the luxury residential real estate market will be increasingly stabilising, a crucial step to avoid complications for a long-term, super-heated market.

With 75 per cent of luxury home buyers choosing their next home with environmental sustainability headlining a broad range of findings from a study of the world’s affluent households by Luxury Portfolio International® (LPI), 2021 ends as one of the most robust luxury residential real estate markets in history.

“After a record-breaking year in luxury real estate, we anticipate that some balance will be restored to the market,” said Mickey Alam Khan, President of LPI in a statement.

“It is important to view the luxury market over a trajectory of several years, noting that half of 2020 was in paralysis due to the pandemic. The red-hot market that began in the latter part of 2020 continued into 2021 and will continue a positive trajectory into 2022.

“The difference will be that there will be more luxury sellers in 2022 than in 2021, and while there will be fewer actual luxury buyers, it is still a seller’s market.”

-- BERNAMA