The cost of luxury real estate increased in 2024 – with Asian and Middle Eastern countries dominating the market – even as interest rates continue to deter people from purchasing new properties, this year’s Wealth Report from Douglas Elliman (DOUG) and Knight Frank revealed.
Seoul, South Korea saw the most dramatic growth, with an 18.4% increase in the value of luxury real estate. In the Philippines, the Manila market grew by 17.9% and in the United Arab Emirates, the Dubai market saw a 16.9% jump.
In the United States, growth in the luxury resort housing market is outperforming most other real estate, even in the face of limited inventory levels. Resort markets, in particular, have seen dramatic growth since the COVID-19 pandemic.
Nowhere is this shift clearer than in Palm Beach, where property values are up 117% since the end of 2019. Just last month, the heir to the Estée Lauder (EL) fortune sold two vacant parcels of land on the Palm Beach waterfront for $200 million.
Some have attributed the Palm Beach property boom to President Donald Trump’s presence in the city, which is home to the Mar-a-Lago resort.
“We have undoubtedly seen a huge bump after the election,” Margit Brandt, of Premier Estate Properties, told Mansion Global. “Some international buyers now have their sights set on Palm Beach, so we’ve expanded the buyer pool majorly,” she continued. “Palm Beach is on the world stage now; it’s the center of the universe.”
In many respects, Aspen is the polar opposite of Palm Beach. However, the COVID-19 era also saw a bump in property values. Luxury real estate prices in Aspen climbed 8.9% in 2024, the second-highest growth rate of any American market. Analysts attribute this shift to a broader post-pandemic trend toward valuing health and wellness, which makes the laid-back ski community especially desirable.
Despite these growth areas, however, European and North American markets lagged behind their Asian, Middle Eastern, and Latin American counterparts. Analysts attributed this to higher interest rates and economic uncertainty.
“Even for prime markets, interest rates remain the key story. Rates are still very high in most developed markets compared with where they were as recently as 2022, but the past 12 months have seen central banks move decisively into a new era, with cuts outpacing rate rises for the first time in three years,” said Liam Bailey, global head of research at Knight Frank, in a statement.
“While the direction of travel is positive for house prices and has supported the growth we have seen in over three-quarters of markets, the reduction in debt costs is still not sufficient to turn this into a trend in most markets. It will take additional rate cuts during 2025 to restore momentum.”
Continue reading to learn more about the hottest luxury real estate markets in 2024.
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In Tokyo, the cost of luxury real estate increased by 12.1% in 2024.
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In Riyadh, the cost of luxury real estate increased by 16% in 2024.
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In Dubai, the cost of luxury real estate increased by 16.9% in 2024.
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In Manila, the cost of luxury real estate increased by 17.9% in 2024.
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In Seoul, the cost of luxury real estate increased by 18.4% in 2024.
