Luxury Dened: An Insight into the Luxury Residential Property Market
As the global economy continues its recovery,record sale prices o luxury goods and luxuryhomes continue to capture headlines andintrigue the buying public around the world.
As the only real estate network owned by ane-art auction house, Christie’s InternationalReal Estate has unparalleled access to theHNWIs around the globe who procure assetssuch as art, wine, jewelry, and, o course, luxuryreal estate (1). Together with the collectiveknowledge o its 125 aliated real estatebrokerages in 41 countries – all individuallyselected to join its network or proven recordso proessionalism, client service, and successin high-end luxury residential sales – Christie’sInternational Real Estate is uniquely qualiedto understand the characteristics and trendsassociated with the prestige real estate market.
Location, liestyle, and provenance, particularlyat the top end o the luxury residential realestate market, are the hallmarks o value andoten equally as important as price whenHNWIs consider a property purchase. As such,it was decided not only to examine record andaverage luxury home prices, inventory, andhousing market supply, but also to explorebuying trends, client proles, and liestyleamenities that shape the luxury market.Ten important global cities were selected –cities where aliates o Christie’s InternationalReal Estate hold a strong market share – andcompared across these and other characteristics.This culminated in the development o the“Christie’s International Real Estate Index”,which synthesizes and compares key metricsacross these 10 cities.
In choosing the 10 cities to include in this study,a number o actors that infuence the HNWIluxury home purchaser and seller were
examined. These factors included: city GDP (2);number of billionaire residents (3); AT KearnyGlobal Cities Index (4); UBS Most ExpensiveCities Ranking (5); S&P Case-Shiller Index (UScities only) (6); Globalization and World CitiesResearch Network rankings (7); number of
Fortune 500 companies headquartered in a
city (8); and Christie’s International Real Estate
Based on performance in these categories,the cities selected were: Dallas, Hong Kong,London, Los Angeles, Miami, New York, Paris,San Francisco, and Toronto. Although the Côte
d’Azur does not rank as a city on these lists, ithas been added to this elite survey group orbeing one o Europe’s most highly prized second-home destinations or more than a century (9).All amounts in this report are presented in
US dollars, with exchange rates calculated asof September 30, 2012 (10).