For those who can afford some prime real estate, it appears to be a buyer’s market around the world.
New York City has been affected by the volatility of Wall Street, rising interest rates and political uncertainty, so buyers aren’t so easily seduced into plunking down big bucks for a luxury pad unless it features some incredible amenities.
Thus far in 2019, home sales are sluggish in Manhattan, and real estate experts believe it is due to an overpriced luxury market. According to NYC’s Donna Olshan, president of Olshan Realty, people are showing up at open houses but not taking the bait. She says that sellers are having to reduce prices by 10-percent to try and lure a potential buyer.
For those who are interested in the purchase of a luxury condominium or apartment, certain features are making the selling easier. Today’s home hunters are attracted to a property’s extras that deliver well-being and serenity. For example, there is an 88-story super-luxury tower in NYC that has splurged on the health and wellness factor. The special amenities comprise 44,000 square feet on the 50th and 51st floors and house spacious facilities that include a 75-foot pool, a yoga studio, a fitness center and a private spa.
Across the country in San Francisco, the numbers show a different story with the Bay Area maintaining its domination as one of the fastest growing locations for homes over $1 million. High-price buyers are fearless thanks to tech industry start-ups moving into the region and bringing with them a major boost to the economy.
Across the pond in the U.K., London homebuyers are still going through some bumps following the 2016 Brexit vote. The unrest continues as the British Parliament vote on a possible extension of Brexit negotiations beyond the original March 29th deadline. Political and economic uncertainty has affected the London housing market for more than three years now. British homebuyers have been hesitant to jump back in.
In the Middle East’s Dubai, luxury home sales are also on the decline, and the UAE government recently announced a plan to offer long-term visas to wealthy property investors, senior scientists and entrepreneurs. The reforms will offer a 10-year residency to those expatriates who comprise 80-percent of Dubai’s population.
In short, there is still interest in the luxury market worldwide, but the properties must be “just right” to gain the attention of today’s buyers.