LETTER FROM THE CHAIR AND CEO

Prime residential real estate continues to be an enormously attractive asset for the world’s most affluent individuals. Despite inflationary pressures, stock market volatility, and geopolitical conflicts, luxury property markets remained resilient and have a strong outlook for 2023:

• The skyrocketing luxury real estate sales peak that occurred in many markets during 2021 has proven to be short-lived, with 2022 making a return to more steady price growth and a slowdown of transaction volume. However, prime property prices grew by 34% on average over the past five years in our studied markets worldwide.

• Exchange rate shifts, coupled with the slow post-pandemic return of foreign buyers, are impacting the ebb and flow of the global luxury markets, creating opportunities for some buyers and challenges for others.

• As lockdowns and Covid restrictions eased, affluent buyers have been looking beyond their walls, prioritizing outdoor spaces and access to lifestyle amenities as they often choose to vacation where they live.

• Record prices were achieved for trophy homes in 2022, led by billionaires on the Forbes 400 list. Despite ranking among the year’s priciest sales, these transactions were typically no more than 1% of the buyers’ overall net worth. The top 25 sales were clustered in 11 regions of the world, topped by South Florida, Hong Kong, and Los Angeles.

This report captures the collective wisdom and insights of our global network—over 13,000 agents operating out of 440 offices in 22 countries. The experts cited are leaders in their local real estate markets and are recognized authorities in the world of luxury real estate.

Our team is pleased to present these findings.

Co-Founder and Chair

Michael Jalbert Chief Executive Officer