2023 has, like previous years, been full of surprises: the stalemate in the war in Ukraine, the sudden collapse of Credit Suisse taken over by UBS, terrible trade relations between China and the US, persistently high inflation, central bank interest rates that investors are still waiting to fall, and the brutal escalation of the Israeli-Palestinian conflict in October.
In this turbulent context, luxury real estate once again played the role of ultimate safe-haven asset, as much for primary residences as for secondary ones, both in major cities and in holiday destinations by the sea or in the mountains.
Second homes: the triumphant comeback of big cities
UHNWI own on average 3.7 residences around the world. It is interesting to note that their second homes are mainly located in big cities, starting with well-established values like New York and London. New York has a relatively even split between secondary and primary residences. Unlike Miami, which has four UHNWI secondary residences for every primary residence.
"The unpredictability that has dominated in recent years calls for humility and diversification. However, it also underscores the adaptability of the economy." — Source: UBS Year Ahead 2024