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Appreciation Anticipated For Luxury Homes in Sydney, Seoul, Berlin, Dubai, Moscow, Mumbai and Miami.
- 2nd Jun 2021
The year 2021 can be termed as a comeback year in many ways. The world has got used to the Covid pandemic and the initial shock and awe has now been replaced with new treatments, smarter care, vaccinations and much better understanding.
Many businesses have improved as they have finally got a hold of the proceedings and have managed to align their offerings as per the new reality. The same is the case with luxury real estate globally. The costs of luxury homes in more than thirty cities across the world are slated to go higher as travels increase along with the vaccinations and the recovery stories.
Some of the globally renowned luxury real estate agencies have come up with varied reports for the growth and performance of luxury real estate markets on a global level. Some of the growing cities in terms of luxury real estate include Sydney in Australia, Berlin in Germany, Seoul in South Korea, Dubai in the United Arab Emirates, Mumbai in India, Miami in the United States of America and Moscow in Russia. It is predicted that the year 2021 will see luxury properties in these locations grow substantially.
Factors Contributing to Luxury Real Estate Rebound
Many of these real estate markets including the ones in Seoul, Sydney, Berlin and Dubai have witnessed a robust come back in the latter half of 2020 and which has continued through the first half of 2021. Many factors like increased demand, low interest rates, aspirations for bigger spaces and limited real estate supply in certain locations have been the major reasons among few others for the rebound and further growth. Of course, basic strong fundamentals in certain luxury real estate locations have definitely helped shift the momentum and increase the sales of luxury homes in certain pockets as soon as the grip of the pandemic loosened.
Sydney, Berlin & Seoul
There are a handful of locations globally that have performed well in terms of luxury real estate sales in the latter half of 2020; Seoul, Berlin, Sydney are three of them. The other cities include Dubai, Moscow, Mumbai and Miami.
Dubai luxury real estate momentum has actually started from the second quarter of 2021 as there has been phenomenal activity in terms of sales of luxury homes in Dubai with a lot of foreign investors pouring in money in the Dubai luxury property market. Surprisingly the sale of high end homes in Dubai including plush luxury villas in Dubai has seen the most traction. Luxury condos, golf estates and luxury penthouses in Dubai have also been selling very well.
Mumbai is definitely one city that has a never ending demand for space. The well-heeled and the rich classes in Mumbai are always on the lookout for good luxury real estate buying opportunities. The pandemic, the lock down and the uncertainty thereby created a lot of such opportunities especially in Mumbai luxury real estate market as luxury real estate developers in Mumbai were desperate for liquidity and compromised on rates. Also with the state government providing the added incentive of a substantial stamp duty discount, sales of luxury homes in Mumbai went through the roof in the latter half of 2020 and continued till the first couple of months in 2021. Many celebrities and wealthy in Mumbai took advantage and bought luxury homes in Mumbai especially in South Mumbai. Overall the Mumbai luxury real estate market is still performing pretty well and is expected to grow in the coming months.