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The global super-prime property market has experienced a remarkable 66% growth over the past five years, driven by significant increases in wealth and a reshuffling of global assets, according to Knight Frank’s latest report.
The top-tier luxury real estate market, which includes the most prestigious and sought-after properties in major cities and exclusive locales, has settled at nearly two-thirds above its pre-pandemic levels, reflecting a robust and evolving sector.
Knight Frank’s analysis of 11 major super-prime property markets—Dubai, Geneva, Hong Kong, Los Angeles, London, Miami, New York, Orange County, Palm Beach, Paris, and Singapore—revealed that total sales reached $33.4 billion in the year leading up to June 2024.
This figure represents a stabilization following a pandemic-induced peak of nearly $44 billion in late 2021.
Since Q4 2022, annual sales have consistently ranged between $32 billion and $34 billion, signaling a shift towards more sustainable market conditions.
Dubai and Miami lead the surge in super-prime sales
Despite a recent slowdown in activity, the legacy of the pandemic has been a significant expansion of the super-prime market.
This shift is particularly evident in markets like Palm Beach, Miami, and Dubai, which have experienced surges in demand due to global wealth redistribution.
Total annual sales values now stand at $33.4 billion, a 66% increase from the $20.1 billion sales recorded in 2019.
Dubai emerged as the standout growth market, with property sales in the $10 million and higher segment soaring from just 23 in 2019 to 436 in the most recent 12-month period.
Other markets, such as Geneva, Palm Beach, and Miami, also saw substantial increases in super-prime sales.
Geneva’s sales jumped from 59 in 2019 to 102, while Palm Beach saw an increase from 50 to 138, and Miami experienced a dramatic rise from 41 to 149 sales.
Conversely, more mature markets like New York, Singapore, Paris, and Hong Kong have seen more modest growth, while London and Los Angeles have posted increases of 25% to 50% over the same period.
Source: Knight Frank Research
Wealth creation fuels super-prime market growth
The surge in super-prime property sales can be largely attributed to a broader increase in global wealth.
Knight Frank’s Wealth Report confirms a 19% growth in the number of ultra-high-net-worth individuals (UHNWIs) globally over the past five years.
In particular, the remarkable performance of US markets and Dubai is linked to recent wealth creation in these regions, with the number of UHNWIs in the US rising by 8% in 2023 and by 6.2% across the Middle East.
In Q2 2024, Dubai led the super-prime market with 85 sales, although this represents a slowdown from the peak of 131 sales in Q3 2023.
New York followed with 72 sales, marking its highest total in two years.
Hong Kong’s strong performance in third place, with 61 sales, signals a market turnaround driven by demand from mainland China and high individual unit prices.
Commenting on the market outlook, Liam Bailey, Knight Frank’s global head of research, said,
“Substantial wealth creation has supported the growth in the global super-prime sales market. The transformation of markets like Dubai, Palm Beach, and Miami has more than offset the slowing experienced by some more mature markets. With rates moving lower, total transaction volumes are likely to tick higher into 2025.”
As global wealth continues to grow, the super-prime property market is expected to remain resilient, with emerging markets leading the charge.
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