International Buyers Undeterred by Rising Interest Rates as Travel Restrictions Lift

A contemporary take on a classic London mansion. This apartment is in an intuitively designed building that slots into the urban fabric of Marylebone.

international buyers began trickling back to luxury

real estate markets around the world as lockdowns lifted. With lingering pandemic travel restrictions relaxed in most major markets, that trickle is becoming a fl ood. And the ratio of international to domestic buyers in many markets is set to keep increasing through the end of the year.

“Once border restrictions were lifted, we quickly noticed many people wanted to travel freely and, subsequently, move forward with transactions that they had been waiting to see through,” said Christy Budnick, CEO of Berkshire Hathaway HomeServices. “Some destinations that typically relied on overseas investors ground to a halt during the pandemic, but now they are booming, and that is great for the travel, tourism and real estate industries.” Mexico In San Miguel de Allende, an expat destination and UNESCO World Heritage site in the central highlands of Mexico, “Covid-19 decimated the market in 2020,” said Gregory Gunter, broker of Berkshire Hathaway HomeServices Colonial Homes San Miguel. But international buyers fl ocked to the city as soon as travel bans were lifted. “We had people arriving in record numbers in 2021, and of course that has spilled over into this year as well,” he said.

“About 55% of our buyers through the registered transactions are American, and about 11% are Canadian,” Mr. Gunter said. The majority are seeking retirement homes, but the pandemic also brought younger buyers taking advantage of remote-work policies.