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Despite taking a series of hits, New York City remains the world’s most expensive real estate market, according to a new report from Douglas Elliman.
The 17th annual Wealth Report, released Wednesday by New York-based Douglas Elliman and the real estate consulting firm Knight Frank, found that more ultra-prime real estate transactions took place in New York in 2022 than anywhere else in the world. The report defined home sales of over $10 million as “super-prime” and sales over $25 million as “ultra-prime.”
New York City took first place with 244 super prime sales and 43 ultra-prime sales, while London took a close second with the same amount of ultra-prime sales but 21 fewer super prime sales, according to the report. Los Angeles took third place, followed by Hong Kong and Miami.
“Despite rising economic headwinds and growing uncertainty, the world’s wealthy have been committing to luxury residential property, with London and New York the standout cities in demand for ultra-prime sales,” Knight Frank global head of research Liam Bailey said in a statement.
Despite taking the first-place spot, the growth of New York real estate was notably smaller than other top-10 cities. While Miami saw its prices surge by 22 percent and Los Angeles prices went up by 8 percent, New York real estate only went up 3 percent last year, according to the report.
Last year, overall, was considered a down market for luxury sales, especially when compared to the boom seen in 2021. There were apporximately roughly 1,400 sales of $10 million or more across the 10 global markets covered by the report, down 33 percent from 2021 but still 49 percent higher than the levels seen pre-pandemic in 2019.
The report said 2023 will likely see some degree of normalization as the market adjusts to higher interest rates.
“After the anomaly of 2021, 2022 was something of a transitional year,” Knight Frank research partner Flora Harley said in a statement. “Some pandemic trends continued to play out, while mounting headwinds promoted some to reflect on their assets and investment strategies. In 2023, it is likely we will see this process of normalization continue as transaction levels revert to pre-pandemic levels, down on the past two years but still highly active.”
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