Recently there has been much buzz about luxury real estate not only making a comeback, but driving the shift in today’s housing market from slumpsville to history-making heights. In fact, in the past year or so, industry headlines consistently report one trophy sale trumping another whether it’s the $88 million sale of a Manhattan penthouse or a nearly $120 million estate in Silicon Valley. From New York and LA to London, Miami and Hong Kong, chart-topping sales of high-end properties has become an international phenomenon. And, as the New York Times recently reported, the trend looks like it is here to stay.
According to a forecast by Knight Frank, a London-based real estate company, during the next decade approximately 95,000 individuals around the globe will grow their wealth to at least $30 million. Likewise, the number of billionaires will increase by 85 percent to more than 4,000 worldwide.
These global wealthy are hailing from all corners of the world, but Europe and Asia lead the way, with Russian oligarchs and buyers from China and Hong Kong competing for trophy homes. Latin American wealth is also making an impact with Brazilians driving the high-end sales in Miami and New York.
And although the global luxury real estate market operates in its own stratosphere, the overall housing market does tend to see a somewhat trickle down effect. So for the folks who don’t expect to grow their assets to billionaire status anytime soon, as the rates for a 30-year fixed mortgage holds steady at about 4 percent this year, and home prices begin to rise, consider the currently attractive lending rates and act soon. For more information, please contact Felix Nihamin & Associates, P.C. at 212-502-4868.