The most popular real estate markets for the super rich in 2024.

Wealthy individuals looking for a better lifestyle and sound investments are focused on buying new homes, says a new study. According to the Wealth Report from Douglas Elliman and Knight Frank, a quarter of U.S. individuals with ultra-high net worth of $30 million or more plan to buy residential real estate this year. The average ultra-high net worth individual already owns four homes, says the report. A quarter of their residential portfolio is outside their country of residence.

The predominant priorities for their next big purchase for the richest are considered "lifestyle" and "investments", with "taxes" and "security" coming in second.

While the luxury real estate market suffers from many of the same problems as the rest of the market - lack of supply, slow sales, rising prices - it is showing some improvement. Last year, there were 34 sales over $50 million in the U.S., down from 45 sales in 2022, but still significantly more than in the years before the pandemic.

Real estate experts say that with interest rates stabilizing and possibly falling this year, we could already see the first signs of an increase in luxury property supply, which could lead to more sales. "If we see a move to lower rates, or at least more confidence that inflation is heading in the right direction, I think you will start to see an increase in supply," said Liam Bailey, partner and global head of research at Knight Frank.

The report predicts that Miami will be the top U.S. luxury real estate market this year with an expected price increase of 4%. New York ranked second with an expected price increase of 2%, followed by Los Angeles with a 1% increase.

In terms of global luxury real estate market, the market in Auckland, New Zealand is expected to show the highest price growth of 10% in 2024. Mumbai ranks second with 5.5% growth, followed by Dubai (5%), Madrid (5%), Sydney (5%) and Stockholm (4.5%).

Last year, the top 100 luxury real estate markets in the world showed steady price growth, averaging 3%. The best luxury real estate market in the world was Manila, Philippines, with price growth of 26%, driven in part by investor relocation from Hong Kong and China.

Among the worst performers last year were New York with a 2% drop in prices and San Francisco, where prices remained almost the same (0.5%). The biggest decline among the world's major markets was the City of Oxford in the UK, where prices fell by 8%.

Bailey noted that wealthy US buyers are increasingly looking abroad for their opportunities. He said U.S. buyers are now the leading foreign buyers of ultra-premium properties in London - those with prices in excess of $10 million. They are also becoming increasingly active in Europe. "They've become quite a significant factor, much more prominent now in Italy, France and Portugal than they used to be," Bailey said. "I think U.S. buyers have become much more interested in exploring alternatives."

However, $1 million no longer allows you to get what you used to be able to. In Monaco, the most expensive real estate market in the world, $1 million gets you 172 square feet of prime real estate, according to Wealth Report. In Aspen, you get 215 square feet, and in Hong Kong you get 237 square feet, making New York a cheap option with its 367 square feet.