Global super-prime property sales have surged by 66% over the past five years, according to new data from global property consultant Knight Frank. In the three months leading to June 2024, 463 properties worth $10 million or more were sold across 11 key markets, slightly down from 476 sales in the previous quarter. However, these figures are still nearly 60% higher than pre-pandemic levels.
Liam Bailey, Knight Frank's Global Head of Research, attributes this growth to substantial wealth creation and the transformation of markets such as Dubai, Palm Beach, and Miami. These cities have offset slower activity in more mature markets. Bailey expects that with interest rates easing, total transaction volumes are likely to rise through 2025.
Stabilizing Annual Sales Values
The total value of super-prime sales across 11 markets reached $33.4 billion for the year ending in June 2024. After peaking at nearly $44 billion during the pandemic-driven boom in late 2021, annual sales have stabilized between $32 billion and $34 billion since Q4 2022.
Pandemic-Driven Growth
Despite recent slowdowns, the pandemic significantly expanded the super-prime market. Cities like Palm Beach, Miami, and Dubai have benefited from global shifts in wealth distribution. The current annual sales value of $33.4 billion marks a dramatic increase from $20.1 billion in 2019.
Key Market Highlights
Dubai has emerged as the fastest-growing market for super-prime properties, with sales rising from just 23 in 2019 to 436 in the latest 12-month period. Other notable increases include Geneva (59 to 102 sales), Palm Beach (50 to 138), and Miami (41 to 149). Meanwhile, more established markets like New York, Singapore, Paris, and Hong Kong have seen moderate growth. London and Los Angeles have experienced sales increases of 25% to 50% since 2019.
Wealth Creation Fuels Growth
The global rise in ultra-high-net-worth individuals (UHNWIs) has driven this growth, with Knight Frank's Wealth Report revealing a 19% increase in UHNWIs worldwide over the past five years. The U.S. and Middle East have seen notable increases, with the number of UHNWIs in the U.S. rising 8% in 2023 and in the Middle East by 6.2%.
This Quarter's Performance
Dubai led the market in Q2 2024, with 85 transactions, though this was down from 131 in Q3 2023. New York followed with 72 sales, its highest in two years. Hong Kong, with 61 sales, also showed a strong rebound, fueled by high demand from mainland Chinese buyers and rising unit prices across the city.