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.

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.

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.

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.

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.