Ultra-Luxury Home Sales Soar in New York

Sales of ultra-luxury homes, priced at $10 million or more, have skyrocketed in select US markets, defying a global trend of decline.

• New York, Miami, and Palm Beach saw significant increases in sales during the second quarter of 2024.
• Palm Beach witnessed the most dramatic surge, with a 44% jump in sales, followed by Miami at 27% and New York at 16%.

New York Leads the US in Luxury Sales

New York City dominated US luxury real estate sales, recording 72 transactions exceeding $10 million in the second quarter, the highest number in two years.

• Miami came in second with 55 sales, followed by Los Angeles with 42 and Palm Beach with 36.
• Los Angeles experienced a 29% decline in $10 million-plus sales, primarily attributed to the newly imposed “mansion tax” on homes sold for over $10 million.

Palm Beach's Private Island Sets Record Price

Palm Beach was a hotbed for ultra-luxury transactions, highlighted by the record-breaking sale of the only private island in the area.

• The island sold for $150 million in May, reportedly purchased by Australian infrastructure investor Michael Dorrell.
• In June, a historic 3.2-acre estate in Palm Beach sold for $148 million.

Global Luxury Real Estate Market Overview

While demand for luxury properties is slowing down from its 2021 peak, ultra-wealthy buyers are still shelling out record prices for rare and coveted properties, particularly in key markets like New York, Miami, and Palm Beach.

• Knight Frank, the global real estate firm, attributes this trend to substantial wealth creation and rising financial markets.
• Globally, sales of homes exceeding $10 million decreased by 4% year-over-year, reaching $8.5 billion.

Dubai Emerges as a Global Luxury Real Estate Hotspot

Dubai has become a prominent player in the ultra-luxury real estate market, attracting a significant influx of wealthy individuals from Russia, China, Europe, and other regions.

• Dubai's attractive tax and regulatory environment has contributed to its rapid growth.
• Dubai recorded 85 sales of homes over $10 million in the second quarter, surpassing all other cities on Knight Frank's list.

London's Luxury Market Faces Challenges

London, known for its luxury real estate market, has experienced a sharp decline in sales of $10 million-plus homes, dropping by 47% from last year.

• Concerns over higher taxes on the UK's wealthy have dampened demand.

Interest Rates Offer Support for Future Sales

While ultra-luxury buyers typically pay cash for their properties, falling interest rates around the world are expected to boost sales in the coming months.

• Experts believe this trend will help drive higher transaction volumes in 2025.