Sales of super-prime homes dropped to their lowest annual level in three years in the 12 months to March 2024, according to global property firm Knight Frank’s latest snapshot of the luxury property market.
In the 12 months leading up to the end of March 2024, there were 1,618 super-prime sales. This is the lowest annual total in three years, and, according to the Global Super Prime Intelligence, Q1 2024 report, reflects a stabilising in the market after the highs of 2021/2.
Despite the dip, luxury sales remain above pre-pandemic sales, the report found, with the value of super-prime sales totalling US$8 billion in the first quarter of the year. This is the strongest result since Q2 2023.
Major markets, including London, New York and Geneva, saw sales above pre-pandemic levels, while Dubai led the ranking of super-prime sales.
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Dubai fuels sales of $10 million homes
The super-prime property market in early 2024 reflected tougher economic conditions, regional political uncertainties, and the residual effects of the Covid-19 pandemic. Yet despite a decline in the number of transactions, the high value of sales in the global market underscores the enduring appeal and robust nature of luxury real estate, the report found.
There were a total of 426 super-prime sales, defined as properties valued at US$10 million or more, between January to March 2024, across the 11 key markets tracked by Knight Frank. Luxury sales were driven by Dubai, with 105 sales, cementing its status as a key hub for super-prime property, despite the first quarterly decline in sales in the Emirate since 2019.
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Global sales of luxury residential properties increased from the 365 sales recorded in the final quarter of 2023, although Q1 2024's figures were an 11.6 per cent decrease from the 482 sales in the same period last year.
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The annual total has remained in the 1,600 to 1,700 range over the past two years, which is lower than the post-Covid highs of 2021 and 2022, but still significantly above pre-pandemic levels.
While the number of sales decreased, the total value of these transactions amounted to $8 billion in the first quarter, the strongest quarterly result since Q2 2023. This suggests that while fewer properties are changing hands, the ones that do are of higher value.
Liam Bailey, global head of research at Knight Frank, said: 'Dubai’s arrival as a super-prime hub has helped to support global sales of US$10m+ property. Of the major markets Dubai, London, New York and Geneva are still seeing sales above the levels they experienced in the pre-pandemic period – helping to drive global activity.'
Regional Highlights
- Dubai: Dubai recorded 105 super-prime sales in Q1 2024. Although this is the highest among all tracked cities, it marks the first quarterly decline in Dubai since Knight Frank began its survey in 2019.
- New York and Palm Beach: New York saw 56 sales, while Palm Beach had 47, making them the second and third highest in terms of super-prime sales, respectively.
- London: The London market faced challenges due to uncertainties surrounding the upcoming general election and potential changes to the non-domiciled taxation regime. Sales dipped in Q1, yet London remains the second largest super-prime market on an annual basis, 15 per cent ahead of New York.
- Asia: Hong Kong leads the Asian market with 132 sales in the 12 months to March 2024, followed by Singapore with 88 sales.
