The Surge in Ultra-Luxury Real Estate in 2024. What will 2025 hold?

The Surge in Ultra-Luxury Real Estate in 2024. What will 2025 hold?

The U.S. ultra-luxury residential real estate market experienced a significant boom last year, with over 1,700 sales totaling an impressive $31.39 billion, according to a recent report.

The 2024 Ultra-Luxury Report from Compass revealed that 1,744 homes sold for $10 million or more in 2024. Remarkably, just 10 markets across four states accounted for nearly three-quarters of the total sales volume, amounting to $23.2 billion.

New York, California, Florida, and Colorado emerged as the top states for ultra-luxury sales, with Manhattan leading the way with 307 high-end transactions worth $7.55 billion.

Greater Los Angeles followed with 190 sales exceeding $10 million, totaling $3.33 billion. Florida’s Miami-Dade and Palm Beach County also stood out, generating $2.73 billion and $2.48 billion in sales, respectively. These markets have attracted wealthy investors from New York City and beyond since the COVID-19 pandemic, driving up home prices in Miami and Palm Beach.

Southwest Florida, including cities like Naples and Cape Coral, saw 72 luxury home sales, totaling $1.03 billion. Orange County, CA, recorded 107 upscale home sales valued at $1.58 billion. Silicon Valley and San Diego also made notable contributions, with sales of $106 billion and $835.76 million, respectively.

Outside these leading states, Colorado had a strong year in exclusive real estate, with Aspen earning $1.41 billion from 58 sales. The Hamptons, a long-time favorite for New York City’s elite, continued to thrive, generating $1.15 billion in sales.

Compass researchers attributed the strong performance of these top markets to a combination of wealth creation and wealth transfer. Billionaires and millionaires increased their wealth last year, enabling them to purchase more high-end properties. Additionally, the inheritance of wealth by the children of the affluent created a new wave of wealthy buyers.

The report predicts that the ultra-luxury market will remain robust in 2025, driven by high demand for prestigious homes and private retreats.

Perspective from a Florida Realtor and Native:

As a Florida realtor and native, I see the surge in ultra-luxury real estate as a testament to the state’s growing appeal among affluent buyers. The influx of high-net-worth individuals has driven demand for exclusive properties, particularly in Miami-Dade and Palm Beach County. This trend highlights Florida’s allure as a prime destination for luxury living, offering unparalleled amenities and a desirable lifestyle. For those seeking ultra-luxury homes, Florida continues to present exceptional opportunities, making it an exciting time to be involved in the real estate market here.

Your Realtor,

Antoinette Vazquez

407-579-5008

www.FL RealtorAntoinette.com

Coldwell Banker Realty

Source: Homes.com