global market guide

Global Market Guide

By LINSEY STONCHUS

As high-end markets around the world fluctuate, we see both noticeable differences as well as similarities from region to region. Take a closer look at the luxury real estate markets of these curated global destinations and discover how an uncertain political climate, tourism and the demand for new construction can affect the purchase intent of affluent buyers in our Global Market Guide.

LPI Affiliate: Barfoot and Thompson
Auckland, New Zealand
CURRENT HOUSING MARKET

The number of sales in 2017 compared to the two previous years, decreased by one-third. Turnover in the market has declined, however, the level of decline is not as large in the luxury market.

BUYER PROFILE

Currently about 3–4% of buyers are non-New Zealand residents. Anecdotal information suggests the most common nationalities of non-resident buyers are British, North American, Australian, Chinese and South Korean.

ATTRACTING BUYERS

New Zealand offers an attractive quality of life, temperate climate and connectivity to the rest of the world. The country also does not have a capital gains tax, which makes it appealing to foreign buyers.

NEW DEVELOPMENTS

Housing construction in Auckland is at its highest in decades and the building boom is forecast to continue for the next 10 years.

5-YEAR PREDICTION

Predications anticipate prices will remain flat with sales numbers increasing within the year. The current market is best described as being in a stable trading environment.  Prices have stayed firm long enough to suggest that prices are unlikely to decline.

LPI Affiliate: Unique Estates
Sofia, Bulgaria
CURRENT HOUSING MARKET

There was a high demand for listings in 2018, but not a great supply for what buyers are looking for. Affluent buyers are seeking contemporary spaces with smart home capabilities and large yards, and unfortunately these listings are in short supply.

BUYER PROFILE

Affluent buyers in Sofia are mostly Bulgarians who are returning from abroad to purchase a primary residence or a property for an investment. Bulgarians from the countryside are also venturing into the city to purchase homes.

ATTRACTING BUYERS

Buyers in Sofia are attracted to the location, but they are also looking for new and contemporary buildings with sustainable features and smart home technology to fit their modern needs.

NEW DEVELOPMENTS

High prices and limited inventory are creating challenges for buyers. It is predicted that more of the new developments that buyers are looking for will be completed within the next three years.

5-YEAR PREDICTION

Things are looking positive for the Bulgarian market, but it may not see rapid growth as it did 10–12 years ago. The next two years will show growth with 6–10% increase in prices with new construction projects completed in the next three years.

LPI Affiliate: CDR Bienes Raices San Miguel
San Miguel de Allende, Mexico
CURRENT HOUSING MARKET

Recently, buyers have been looking for homes with cleaner lines and contemporary design, which differ from the arches and Spanish colonial aesthetic that is dominant in the area.

BUYER PROFILE

Most buyers coming to San Miguel are from the U.S. and Canada. As a secondary market, many buyers travel to the region to purchase a vacation home.

ATTRACTING BUYERS

Buyers in San Miguel come to the town for the vineyard and equestrian offerings as well as the culture and architecture.

NEW DEVELOPMENTS

There has been an influx of new construction just outside of the city within the past 5–7 years, and many high-end buyers have been attracted to these new developments.

5-YEAR PREDICTION

Currently, San Miguel is seeing significant price improvement in the area, which may stabilize the market for the next quarter. Demand for real estate is high as more retirees and expats flock to the area.

LPI Affiliate: IRG – International Realty Group Ltd.
Cayman Islands, Caribbean
CURRENT HOUSING MARKET

Due to its stable economy and safe environment, the Cayman Islands have become a very attractive place for international investors. Currently, in a boom market, prices in key areas are rising in an exponential fashion.

BUYER PROFILE

High-end buyers in the area are comprised of both local and international buyers. On an international level, most of the residents come from North America with a recent increase from Asia and the UK.

ATTRACTING BUYERS

Quality design, amenities and above all safety are bringing in buyers. The area has managed to avoid many of the hurricanes and natural disasters that have plagued other countries throughout the past 20 years

NEW DEVELOPMENTS

Construction is very prevalent in  the Cayman Islands and includes high- net-worth-individuals moving to the islands to build their own properties.

5-YEAR PREDICTION

The current market in the Cayman Islands is quite strong and if this trend continues, the area will continue to see growth in the next 5 years (between 3–5% per years).

Global Market Guide originally published in our October 2019 issue of Luxury Portfolio Magazine.