Luxury home market worldwide - statistics & facts
Buying a home is a huge investment for just about anyone; it requires years of planning ahead, saving, and financing, and even more so if one wants to purchase a luxury house or apartment. Despite the high price tag, the demand for luxury housing worldwide is on the rise. To put this in perspective, in 2014 it took an average of 254 days to sell a luxury home, and by 2017 this figure had dropped to around 190 days.
Depending on the location, a luxury home can vary in price significantly. Hong Kong has the highest average price per square foot of prime residential property worldwide, at 4,670 U.S. dollars according to 2018 data. On the other hand, the average price of a square foot of fine real estate in Madrid amounted to only 730 U.S. dollars in that year. As of April 2019, the top two most expensive residential real estate sales worldwide both occurred in Hong Kong. Ho Tung Gardens on the Peak in Hong Kong sold for 657.9 million U.S. dollars, which was a significantly higher amount than the second most expensive property.
When it comes to how to pay for a luxury home, there are two main options: cash payment and traditional financing. Over the last several years, traditional financing has been the most popular method for purchasing a luxury home and the share of purchases made through financing has increased. In 2015, around 56 percent of luxury residential real estate purchase were financed, and 44 percent were paid for in cash. By 2017, 71 percent of the luxury homes were paid for through traditional financing and less than a third were purchased with cash.
For the ultra-wealthy, it is not uncommon to own multiple residential properties. A 2018 survey of private bankers and wealth advisors found that the average ultra-wealthy individual owned around 3.6 homes worldwide. In Latin America, this figure amounted to 4.71 homes, the highest of region in the world. The gap between millionaires and demi-billionaires is also vast in terms of home ownership. Demi-billionaires are those who have at least half a billion U.S. dollars in assets. The average millionaire in 2018 owned two homes, while the average demi-billionaire worldwide owned about ten homes.
Depending on the location, a luxury home can vary in price significantly. Hong Kong has the highest average price per square foot of prime residential property worldwide, at 4,670 U.S. dollars according to 2018 data. On the other hand, the average price of a square foot of fine real estate in Madrid amounted to only 730 U.S. dollars in that year. As of April 2019, the top two most expensive residential real estate sales worldwide both occurred in Hong Kong. Ho Tung Gardens on the Peak in Hong Kong sold for 657.9 million U.S. dollars, which was a significantly higher amount than the second most expensive property.
When it comes to how to pay for a luxury home, there are two main options: cash payment and traditional financing. Over the last several years, traditional financing has been the most popular method for purchasing a luxury home and the share of purchases made through financing has increased. In 2015, around 56 percent of luxury residential real estate purchase were financed, and 44 percent were paid for in cash. By 2017, 71 percent of the luxury homes were paid for through traditional financing and less than a third were purchased with cash.
For the ultra-wealthy, it is not uncommon to own multiple residential properties. A 2018 survey of private bankers and wealth advisors found that the average ultra-wealthy individual owned around 3.6 homes worldwide. In Latin America, this figure amounted to 4.71 homes, the highest of region in the world. The gap between millionaires and demi-billionaires is also vast in terms of home ownership. Demi-billionaires are those who have at least half a billion U.S. dollars in assets. The average millionaire in 2018 owned two homes, while the average demi-billionaire worldwide owned about ten homes.
