Luxury listings booming on Properstar portals

Properstar Marketing
Published by Properstar Marketing

Luxury real estate activity flourishes

With the pandemic, the sale of luxury properties has been rising all around the world. In this difficult period, investors and affluent buyers have been focusing on bricks and mortar, asset-based investments, like real estate.

In Q4 of 2020, we saw 31% growth of listings over $1M published on Properstar compared to the same period in 2019

 

We have been investigating this evolution in the increased volume of luxury listings, published on Properstar. Overall, we see that current worldwide luxury listing numbers, when compared to those in 2019, showed a significant increase, with 112, 424 listings over $1M in January 2021!

 

Country by country study

 

Premium listings in the price range over $2.5M accounted for one-third of this increase. We delved a little deeper and isolated some major markets like United States, Portugal, France and Spain that showed a high level of luxury listing increases.

 

The Luxury market in the United States

Luxury markets are doing well and are expected to continue to do so. Limited inventory of move-in ready, luxury homes has forced prices up and high-end homeowners, who for years have rented out their investment properties, are now putting them on the market knowing that they can command top dollar from affluent clients.

 

Increase of luxury listings on Properstar in the U.S.

 

+49% for properties priced at between 1-2.5M

+64% for properties priced over 2.5M

The number of luxury listings in the United States is 58% higher in Q1 2021 than they were in the same period in 2020 on Properstar.com with 20 676 listings. The rebound for luxury listings in both price categories is currently rising at a significant rate.

 

Luxury buyers and leads

8% of foreign buyers purchase U.S. homes priced at $1M or more. In 2020, 29% of the leads were for properties above $700, 000. Refer to our U.S International Buyer Report 2020

As the world has grappled with the human and economic costs of the Covid-19 pandemic, the United States government has injected trillions of dollars into the economy to mitigate the economic downturn.  In this effort to achieve economic stability, the injection of “new money” into the economy will drive inflation up. In order to protect their savings and investments from inflation, savvy investors are transferring their money into stable assets, like real estate. The result is a record volume of properties being sold at remarkably high prices. For individuals that have been considering selling their luxury homes, now is a better time than any to sell.

In fact, many countries find themselves in a similar situation, and the large increase in luxury listings on Properstar is evidence of this trend.

 

The Luxury market in Portugal

Portugal is catching up rapidly with its neighbor Spain, as an ex-pat favorite. Portugal is an increasingly popular choice for foreign citizens looking to buy or rent property in Western Europe. Property ownership is extremely attractive due to Portugal’s low-interest rates, lower property taxes and long-term mortgages.

 

Increase of luxury listings on Properstar in Portugal

 

+53% for properties priced at between 1-2.5M

+35% for properties priced over 2.5M

 

The number of luxury listings in Portugal is 39% higher as of Feb 2021 than they were in 2020 with 13 830 listings. In the last few years, there has been a steady increase of American citizens looking for a less expensive place overseas with a more calm and peaceful life.

 

Luxury buyers and leads

The volume of total leads is significantly higher in Portugal. The percentage of leads for properties above $700, 000 in 2020 is 3%, which in absolute numbers, represents a significant volume. Refer to our Portugal International Buyer Report 2020.

 

The Luxury market in France

For luxury real estate, buyers always look to Paris, and with such limited supply in a geographically very small city, demand remains strong in the luxury market.

 

Increase of luxury listings on Properstar in France

 

+34% for properties priced at between 1-2.5M

+28% for properties priced over 2.5M

 

The number of luxury listings published on Properstar in France is 32% higher as of Jan 2021 than they were in 2020 with 27  229 listings. There is an increasing demand for rural property in France whether as a permanent home or as a holiday home – from both domestic and international buyers

 

Luxury buyers and leads

In the high-end French housing market, the forecast is that values will continue to increase, pulling the market averages upward. In 2020, 16% of the leads in France in the ListGlobally network were for properties above $700, 000. Refer to our France International Buyer Report 2020.

 

The Luxury market in Spain

With Q1 of 2021 behind us, more and more expats and foreign buyers want to move abroad and buy property in Spain. The residential property market in Spain is already showing signs of recovery, although figures are still below the situation prior to the health crisis. (INE real estate registry)

 

Increase of luxury listings on Properstar in Spain

 

+37% for properties priced at between 1-2.5M

+19% for properties priced over 2.5M

 

The number of luxury listings published on Properstar in Spain is 23% higher as of March 2021 than they were in 2020 with 16 847 listings. The number of home sales and purchases in Spain grew during the last quarter of 2020, with both national and international buyers showing renewed interest.

 

Luxury buyers and leads

As in Portugal, the volume of total leads is an important indicator of the international housing market.  Leads for properties above $700, 000 in 2020 represent 5% of total leads. Refer to our Spain International Buyer Report 2020.

 

Growing with the luxury market

There was a time not too long ago when all agents advertised themselves in the same manner. Then, the market landscape changed. The internet became a big part of the sales process – for both buyers and agents. Add a few boom and bust cycles, then the pandemic and a whole new set of factors influence the market. Today’s landscape is comprised of buyers who want an agent who can readily help them, no matter what they are looking for or where in the world the property may be located.

So what does this mean for you as an agent? And how can you position yourself on top?

 

Luxury

Luxury is a key factor for the international exposure of your listing on prestigious portals. With these examples mentioned above from across the world, you can see that there is no doubt that the luxury market is thriving. Luxury is playing an important role in publishing our agents’ prestigious properties across the world. Our Luxury Network portals include Mansion Global, James Edition, the Wall Street Journal, BellesDemeures, PrimeLocation, Propriétés le Figaro, Lux-Residence.

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