In 2023, widespread inflation, higher interest rates and the spike in commodity prices have added complexity to an already difficult economic and geopolitical context. The most concerning element has been the worsening situation in the Middle East at the end of 2023. In an uncertain global context, luxury real estate has once again confirmed its status as a safe-haven value and withstood the turbulence in the financial markets thanks to the importance placed on excellence, prime locations and quality.
The UHNWI clientele, primarily composed of entrepreneurs, is now more mobile than ever, working from anywhere in the world. This increased mobility allows them to consider acquiring several semi-primary or semi-secondary residences ; a trend that has emerged in response to the new aspirations of these women and men in search of geographic freedom and professional flexibility.
The BARNES City Index 2024 highlights this phenomenon that has resulted in an explosion in the number of digital nomads. While some historic cities like New York, Paris and London continue to stand firm by building on their fundamentals despite high taxes, others like Madrid, Lisbon, Rome and Istanbul have adapted their tax regimes to attract wealthy clients. Dubai, Miami and Austin, the ultimate "cities of the future", seem to have settled in for the long haul at the top of the BARNES City Index.
Two phenomena seem to have taken hold on a long-term basis: growing UHNWI wealth fuelled by multiple economic crises, and growth in the number of digital nomads. Against this backdrop, luxury real estate acts as a stabilising factor for wealthy investors. In a constantly changing world, stability, quality and location continue to dominate.
The BARNES Global Property Handbook draws on various baseline studies conducted in particular by Wealth-X/Altrata, PWC, UBS, McKinsey and Capgemini as well as surveys carried out across 2023 among over 89,000 BARNES clients, employees and partners.