In the early months of 2020, Luxury homebuyers in pockets all across the country abandoned the convenience and low-maintenance potential that condos offer, opting instead for more space with fewer people. Sales rose in suburbs of New York, like Westchester County, and Long Island, between March 2020 and November 2020. However, Manhattan sales fell dramatically. High-end properties in urban areas sold in the city saw steep discounts. Here we will discuss how luxury condo sales are surging across the country.
However, all that has changed in the last 12 months. Manhattan has primarily rebounded, with the most pronounced increases in Hudson Yards and Chelsea—where contracts have tripled, and pricing is up more than 20% from pre-pandemic numbers—and on the Upper East Side, where contracts are up 150% and pricing 15%. The same is true in Miami; Sales of luxury condos are up 113.8% year-over-year, and Q3 2021 saw the highest numbers for that time period in more than six years.
The luxury condo market is now red-hot, with properties selling at or above asking prices and multiple offers being the norm rather than the exception. So what’s driving this resurgence in demand for high-end condos? This blog post will explore some of the factors behind this phenomenon, including the popularity of urban living, the rise in foreign investment in U.S real estate, the variety of inventory, and the increasing number of empty nesters and retirees.
The rise in foreign investment in U.S real estate has also helped boost the luxury condo market. A growing number of wealthy individuals from around the world are investing in U.S condos as a way to diversify their portfolios and protect their money against volatility in their home countries. In addition, many foreigners view U.S real estate as a sound investment due to the strong economy and stable political environment.
The increasing number of empty nesters and retirees has also helped drive demand for luxury condo sales. As more and more people reach retirement age, they choose to downsize their living arrangements and move into smaller homes or condos. This trend is particularly prevalent in urban areas.
The popularity of urban living is another factor driving demand for luxury condos, as more and more people are choosing to live in cities. The upside to urban living is that cities are the cultural and business engine of the country, and they continue to be a desirable place to live despite the narrative of the past two years.
Another factor contributing to the desirability of luxury condos is the variety of inventory. There are many different types of luxury condos out there, and this variety is appealing to buyers. From small or boutique buildings to full-service high-rise residential towers, buyers can find any type of condo home they want in a wide range of prices, walking distance to the things they and their families love to do. They can find the perfect property that meets their needs, whether for work or leisure.
Many high-end condo developments come with top-notch amenities, such as gyms, swimming pools, and roof decks, which are becoming increasingly important to luxury homebuyers. And finally, many people are choosing to buy condos as investments, knowing that they will be able to rent them out for premium rates, especially for luxury condos in South Florida. As a result of post-pandemic life, South Florida has quickly become one of the most popular getaway destinations in the world. Buyers & renters are coming from all over the globe to take advantage of our sunny weather, beaches, and lesser restrictive atmosphere. As a result, the demand for short-term rentals has skyrocketed, with luxury condos being the most in-demand.
So what does all this mean for the condo market? It looks like the luxury condo market is here to stay! The current trends indicate that luxury condo sales will continue to increase as more and more people are drawn to the urban lifestyle and the many benefits that come with it. If you’re thinking of buying a luxury condo as an investment or just for yourself and your family, now is the time.