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Luxury Holiday Homes for 2022

Is 2022 the year of international real estate investors? Borders worldwide are finally open, and vaccinations have rolled out in most urban centres. Increases in interest rates may over-inflate the prices of luxury holiday homes in the near future. But, in 2022, that risk seems negligible.

According to a recent report by Bloomberg, several factors are driving up the demand for luxury homes. They include –

  • Intergenerational Transfers of Wealth: By 2042, approximately $70 trillion will be transferred from older generations to millennials. This new and young group of investors will create waves in the global luxury real estate market.
  • Demand and Competition: There’s a scarcity of concrete, fixed assets like luxury real estate in the world. Investors aiming to balance their portfolios are aggressively buying up luxury homes in major urban centres worldwide. Demand and competition will push the prices of all premium-quality luxury properties in this current environment.
  • Tax Considerations: Investing in foreign real estate will significantly decrease your tax burden. Recently, Canada instituted a 1% capital gains tax on the value of luxury homes owned by non-Canadian owners. That means many investors from Canada’s luxury real estate market will be looking for new investments in foreign countries. Countries like Kuwait, Monaco, Qatar, Saudi Arabia, and the United Arab Emirates are very investor-friendly in terms of taxes.
  • Supply Crunch: Lack of consistent supply may slow down the global luxury housing juggernaut. The demand for high-quality luxury condos will keep increasing throughout 2022 (and possibly beyond that). Hence, investors who own multiple luxury properties across the world are set to benefit a lot.

So, where should an aspiring luxury real estate investor turn to in 2022? According to current market trends, the following locations are ideal for luxury home investments. Of course, your selection will also depend on the quality of life, geographic qualities, etc. Here’s a shortlist of the best luxury home markets around the world that meet all these criteria –

Dubai, UAE

The international elite has had an insatiable appetite for Dubai’s luxury homes for over a decade. In 2021, luxury home sales in Dubai reached record levels. Add up all $10+ million luxury home sales in the middle eastern city since 2010. In 2021 alone, the number of luxury home sales in the city was almost three times more than all the sales recorded since 2010.

Will this golden run continue in 2022 and beyond? Most probably yes. Anything is possible in this city of skyscrapers. Luxury home investors need premium-grade lifestyles, high-end shopping options, and luxury residential communities that are constantly growing. Dubai offers all of that and more.

New York, U.S.A.

In the United States, there are multiple exciting luxury real estate markets to choose from. But, no market comes close to the eternal city of gorgeous skyscrapers – New York City, New York. Manhattan’s luxury real estate market, in particular, has been on a golden bull run in 2022. The borough is home to some of the swankiest properties in the world.

Again, luxury real estate in Manhattan, Brooklyn, Queens, and the surrounding boroughs of New York are highly scarce assets. There will always be high demand for ultra-luxurious homes in this part of the world from elite global investors.

Singapore

It’s hard not to include the fastest-growing urban wealth hub in the world on a list of top-quality luxury properties. Singapore’s “ultra-luxury” condos are some of the most sought-after assets in the world. Plus, the country’s tax benefits are drawing real estate investors from all across the world in 2022.

Investors can’t go wrong if they invest in any of the locations on this list, at least not in 2022.

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