The 2024 Mid-Year Luxury Outlook℠ report is Sotheby’s International Realty’s first-of-its-kind mid-year report, delving into the pivotal, forward-looking issues shaping luxury residential property markets worldwide. Our aim is to offer as much insight and perspective as possible to help our clients make informed and intelligent decisions regarding their real estate portfolios.

The report looks into how policy shifts and elections will likely impact property markets as voters hit the polls in nearly 80 countries. It also explores cultural investments like new museums and major art projects to continue to mould desirable neighbourhoods and bolster property values. We know buyers and sellers are eager to make wise financial decisions, and staying informed is key to making that happen.

When the 2024 Luxury Outlook℠ report was released in January, several interest rate decreases were expected. Lower interest rates would make monthly mortgage payments more approachable, enabling potential buyers who were waiting on the sidelines to transact again and helping to unlock housing inventory.

Those in the Millennial generation, which is the largest generation in recorded history, numbering more than 100 million people in North America alone, are now entering their prime income-earning years, with many considering home purchases. Coupled with an estimated $16 trillion wealth transfer from Baby Boomers and the Silent Generation to Millennials and Gen Z in the next decade, creating immense demand for luxury real estate, independent of interest rate fluctuations.

For those thinking of homes as investment vehicles, the financial concept of “time value of money” should also be considered. When selling a home, owners may often focus on the sales price. The reality is that holding out for the ideal price incurs costs, from maintenance, taxes, lost investment opportunities, and delaying a move to another property that might better suit your lifestyle.

But a home is more than the money tied up in it; it’s about cultivating an environment conducive to your happiness. For many, that’s living on a golf course, near the water, or in a property that best displays a beloved art collection.

As collectors have become more sophisticated, many homes today are being designed around an art collection that is meant to be enjoyed daily rather than sitting in storage. Drawing on proprietary data from Sotheby’s fine arts division, this report also provides insight for collectors looking to make informed decisions about the art on their walls. After all, what better frame is there for a collection than a home?

We hope that luxury buyers and sellers find this mid-year report useful and that it provides transparency and insight into the premium property market for which our team and Sotheby’s International Realty are known for.