In 2023, international crises have paradoxically consolidated themselves around us. Through crises of all kinds hitting the planet, luxury real estate finds itself in an arbiter's position. The world's great fortunes have definitively acknowledged its status as a safe-haven asset, provided the property and its location are chosen with the greatest care.
2022 was turbulent for financial markets, still recovering from COVID-19 and concerned by the war in Ukraine. 2023 dealt with widespread inflation, rising interest rates and above all the escalation of the Middle East situation from October. How has luxury real estate behaved in this troubled context?
Heidi Barnes: luxury real estate, a confirmed safe-haven value
Heidi Barnes: In the turbulent context of 2022 and 2023, marked by major economic and geopolitical challenges, luxury real estate has played the role of safe-haven asset, confirming its resilience against financial market tremors. More than ever, investors seeking stability and security have turned to high-end real estate. Buyers are looking for properties offering enhanced security, whether in terms of physical security or legal stability.
Thibault de Saint Vincent: the premium on excellence
Thibault de Saint Vincent: Luxury real estate has withstood economic and geopolitical turbulences due to the premium placed on excellence, prime locations and quality. Properties of exceptional quality, characterised by high-level finishes, luxurious amenities and unique features, have maintained their appeal. Premium location remains the number 1 criterion. Additionally, luxury real estate has played the role of a refuge against inflation and rising interest rates.
"In luxury, nothing replaces human contact and personalised service. In this context, the relationship of trust between the real estate consultant and the client remains crucial." — Heidi Barnes
TSV: In 2024, among the top 10 most attractive international cities for wealthy clients, we can distinguish the "cities of the future" — Dubai, Miami and Austin — which seem to be here to stay at the top of the BARNES City Index. Alongside these are the historic cities that continue to hold their ground, like New York, Paris and London, despite high taxes. And finally, historic cities that are progressing by adapting, notably Madrid, Lisbon, Rome and Istanbul.