Forbes Global Properties Reveals Timely Luxury Trends in 2021 International Real Estate Report

Coinciding with the organization’s first anniversary, the Year-End Market Perspective draws from the transactions and expertise of more than 2,400 leading experts across 11 countries

Forbes Global Properties, a curated consumer marketplace of luxury homes and an invitation-only membership network of top real estate firms, has released the 2021 Year-End Market Perspective. A comprehensive analysis of the international luxury property market gleaned directly from its local leading experts, the report examines global property prices, buyer demographics, desired luxury amenities, and second home market trends, while also underscoring market enthusiasm through anecdotal recounts of recent transactions.

“The performance of the international luxury property sector over the past twelve months, and that of our growing network, has been nothing short of extraordinary,” said Jeff Hyland, President and Co-Founder, Forbes Global Properties. “A significant period of time spent at home, coupled with a growing population of high-net worth individuals, dramatically amplified interest in luxury property acquisitions and second home purchases.”

Global Property Prices:

A stark decrease in luxury housing inventory and increasing buyer demand drove prices upwards.

“Throughout our network, our members saw substantial price increases and unprecedented buyer demand intensifying a marked decline in inventory during 2020 and 2021,” said Bonnie Stone Sellers, Chair and Co-Founder, Forbes Global Properties. “Many of our members experienced record-breaking years in terms of both volume and price-points achieved.”

A review of select markets revealed that 2021 median prices considerably outpaced 2020 price increases, with domestic markets like Lake Tahoe, Ventura County, and Scottsdale reporting double-digit gains of 29%, 28%, and 24% respectively. International markets followed similar trends as evidenced by increases of 32% in Sydney, Australia, and a 17% increase in Toronto’s average price.

 The state of Hawaii, in particular, exemplified exponential growth as a result of highly motivated buyers. There, luxury sales priced at US$3 million and above in 2021 surged past 2020 with a 195% increase in transactions and 235% increase in total dollar value sold.

Buyer Demographics:

Across global luxury property markets, younger buyers shaped demand.

Individuals under the age of 56 (Gen X, Millennials, and Gen Z) comprised at least two-thirds of buyers in many of the luxury primary home markets studied, with Gen X accounting for the largest demographic in selected markets as evidenced by a 70% share in Lake Tahoe and 50% in Hong Kong. Several of the primary home markets surveyed reported a demographic shift with Millennial buyers (ages 25-40) representing a growing proportion of overall luxury buyers. The Great Generation, or individuals over the age of 75, accounted for 8% of the buyers in Santa Barbara, and only 5% of buyers in both Hong Kong and Dubai.

Members also noted that the increasingly younger buyer population is responsible for shifting property messaging and marketing strategies to tech-forward touchpoints.

“Affluent individuals and established families of all ages have an affinity for the Forbes brand,” said Alex Lange, CEO of Forbes Global Properties. “Our unique platform allows us to write the story of the home and the area so that a buyer can really fall in love with it.”

Desired Amenities:

“Location, location, location” shifted to “location, location, lifestyle” as the hybrid work model became the norm.

Forbes Global Properties members ranked buyer priorities within their respective markets, demonstrating an overwhelming 68% preference to more indoor and outdoor space. Further bolstering that preference, 64% of affluent buyers prioritized a home office, followed by 32% seeking privacy, and 19% gravitating towards a move-in ready home. The fifth most in-demand feature was a tie between a private pool and fitness facility and increased green spaces such as balconies, terraces, and gardens, each accounting for 18% of those surveyed.

Second Homes:

Markets were redefined as real estate priorities shifted.

Nearly all brokers in surveyed second home markets reported that even if luxury homes were purchased initially as a vacation residence, high net-worth individuals are increasingly using these homes for primary home purposes and for longer periods of time. Capitalizing on lifestyle amenities like skiing and golf, this trend was particularly evident in Montana, Telluride, Lake Tahoe, and the Swiss Alps.

Forbes Global Properties is the exclusive worldwide residential real estate partner of Forbes. The global media brand estimates that nearly 500 individuals around the world joined the billionaire class between March 2020 and 2021. The global population of high-net worth individuals also increased by more than 1.2 million, according to Capgemini’s 2021 World Report.

Members of the exclusive network benefit from Forbes’ engaged audience of more than 100 million monthly global visitors to connect, inspire, and inform affluent potential homebuyers and sellers about the finest properties for sale around the world. Homes are presented across Forbes and Forbes Global Properties print, digital, and social media channels with expert commentary, timely market data, and top-tier editorial.

About Forbes Global Properties

A natural extension of the time-honored Forbes brand, Forbes Global Properties is a curated consumer marketplace that connects discerning buyers directly to the world’s finest homes and the elite agents that represent them. Established in December 2020, the invitation-only network spans 140 locations and comprises approximately 2,400 luxury property experts across the U.S., Asia, Australia, Canada, Mexico, the Middle East, and Europe. More than 100 million monthly visitors to forbes.com enjoy unrivaled access to an elite collection of properties presented within the hallmark context of trusted editorial content and timely market data. For more information, visit forbesglobalproperties.com and view the brand’s exciting new video here.