In 2024, the most sought-after housing markets for the wealthy.

• A new report from Douglas Elliman and Knight Frank reveals that one-quarter of American ultra-high-net individuals plan to purchase a home this year.
• The wealthy prioritize "lifestyle" and "investment" above all else, with taxes and safety coming in second.
• This year, it is predicted that Miami and New York will be the top-performing luxury markets in the United States, according to the report.
• Auckland, New Zealand is predicted to be the top market for luxury real estate worldwide.

A study reveals that the wealthy are seeking a superior lifestyle and investment opportunities when purchasing their next home.

According to the Douglas Elliman and Knight Frank Wealth Report, one-quarter of American ultra-high-net individuals plan to buy a residential property this year. The average ultra-high-net-worth individual already owns four homes, and one-quarter of their residential portfolio is outside their home country.

The top priorities for the ultrawealthy when it comes to their next big purchase are "lifestyle" and "investment," with "taxes" and "safety" following closely behind.

Despite facing the same challenges as the general real estate market, such as low inventory, sluggish sales, and increasing prices, the ultra-luxury segment has performed slightly better. In the US, there were 34 sales worth over $50 million in 2022, a decrease from 45 in the previous year but still a significant improvement from the pre-pandemic era.

Real estate experts predict that with stabilizing and potentially falling interest rates, there may be an increase in luxury supply, which could result in more sales.

According to Liam Bailey, partner and global head of research at Knight Frank, if there is a pivot to lower rates or more confidence that inflation is heading in the right direction, inventory will start to build up again.

Miami is expected to have the best-performing U.S. luxury market for price growth this year, with an anticipated increase of 4%, according to the report. New York ranked second with a predicted 2% growth, while Los Angeles is forecasted to have 1% growth.

In 2024, Auckland, New Zealand is projected to have the highest growth in luxury real estate globally at 10%, followed by Mumbai at 5.5%, Dubai at 5%, Madrid at 5%, Sydney at 5%, and Stockholm at 4.5%.

In 2019, the world's top 100 luxury real estate markets experienced an average increase of 3% in price. The top-performing luxury real estate market globally was Manila, Philippines, with a remarkable 26% growth. This surge was partly driven by investors seeking refuge from Hong Kong and China. Dubai followed closely behind with 16% price growth, while the Bahamas and the Algarve region in Portugal recorded 15% and 12% growth, respectively.

Last year, New York experienced a 2% decline in prices, while San Francisco remained relatively stable at 0.5%. Oxford, located in the U.K., had the largest decline among prime markets, with a 8% drop.

Ultraprime London properties priced above $10 million are increasingly being purchased by American buyers, who are now the leading foreign purchasers in this market. These buyers are also becoming more active in Europe.

Bailey stated that American buyers have become more noticeable in Italy, France, and Portugal, and are now more open to exploring alternatives.

The value of $1 million in real estate varies across the world. In Monaco, it buys 172 square feet of prime property, while in Aspen it gets you 215 square feet and in Hong Kong, it buys 237 square feet. In comparison, New York looks like a bargain with 367 square feet.