Global Luxury Real Estate Market Drivers In 2024: AI, Sustainable Development & Mobility

Cyprus Sotheby’s International Realty is pleased to announce the release of the 2024 Luxury Outlook report, a comprehensive exploration into high-end real estate markets across the globe.

The report explores the trends shaping real estate investment decisions in the year ahead, from the intergenerational transfer of wealth, to pinpointing parts of the world where tax incentives are increasingly enticing.

The Sotheby's International Realty 2024 Luxury Outlook report was compiled by surveying Sotheby’s International Realty agents around the world who transact in the US$10M+ price category. This information was complemented by gathering supporting data from other leading industry experts, including UBS; The Brookings Institution; McKinsey & Company; and property technology and security firm, Kastle Systems; in addition to art and luxury experts at Sotheby’s, the famed auction house, to round out luxury trends in the year to come.

KEY FINDINGS FEATURED IN THE REPORT INCLUDE:

• High-net-worth individuals being more mobile than ever - maintaining multiple residences - and looking at transactions with a modified perspective in light of higher taxes, new government incentives, or in the face of a changing climate.

Anastasia Yianni, CEO of Cyprus Sotheby's International Realty and the leading real estate expert in Cyprus, commented on the key report's results, providing more insight into Cyprus's high-end real estate market.

"Cyprus remains one of the top investment destinations, specifically for the real estate sector. Foreigners continue buying property in Cyprus as an investment, a summer residence, or a second home. Factors such as real estate expenses, price fluctuations, new construction, the Euro exchange rate, local laws, and investment regulations - all play a role in their investment decision. Another big plus is the opportunity to get permanent residency in Cyprus through property acquisition. Therefore, having the support of a competent team throughout the property-buying process is crucial.  Our team of professionals completely empowers clients to reduce possible risks while offering an excellent service.”

• The real estate industry uses the synergy of the real world and the cyber world to market and sell homes.

"Businesses all around the world are using digital tools for their operations, and Cyprus is no exception. One of the primary focuses is to enhance client services through this digital shift, and in the case of the Cyprus real estate market, we can claim this improvement in online real estate platforms. During the pandemic, there was an acceleration of technological changes in Cyprus, where the real estate industry adapted to remote work and embraced digital tools. The integration of AI, data analysis, and virtual and augmented reality is slowly shaping the future of real estate practices in Cyprus," Anastasia Yianni commented.

• More than 80% of leading Sotheby’s International Realty agents said AI is likely to have the biggest impact on the real estate industry in the next five years vs. virtual reality or blockchain.
• The dominance of telecommuting and hybrid work shifting the demands of affluent homebuyers.
• Sustainability moving from a niche interest to now being top of mind for many buyers.

"Today high-end property buyers are more and more focused on eco-friendly and environmental concerns, making them one of the key factors in their purchasing decisions. As a result, features like solar panels, energy-efficient technologies, and eco-friendly building materials becoming more common, adding significant value for these clients. In the Cyprus market, there is also a growing demand for additional sustainability features, with smart home systems and alternative energy sources," Anastasia Yianni revealed.

• A historic rise in mortgage interest rates translating into a higher percentage of all-cash deals around the world.

Luxury Outlook 2024 Report

https://www.luxuryoutlook.com/luxury-outlook-report-2024/