Europe Luxury Residential Real Estate Market Size

Europe Luxury Residential Real Estate Market Analysis

The size of Europe Luxury Residential Real Estate Market is USD 124.6 billion in the current year and is anticipated to register a CAGR of over 4% during the forecast period. The COVID-19 pandemic significantly impacted the luxury housing market, which saw a drop in sales transactions. Due to pandemic restrictions and lockdown measures, sales in Europe were hampered.

• The sector is in the recovery phase, and in a few European countries, like France, the market was resilient during the COVID-19 pandemic. The market in the French Riviera remained resilient even during the pandemic crisis, with high demand and stable price development in the luxury market. Despite the general uncertainty surrounding the economy, European residential markets, in most cases, showed at least minor growth in pricing. The real estate sector in France and Germany has seen tremendous growth in investment volumes.
• In 2021, the European real estate market made a robust comeback, with year-end figures approaching pre-pandemic levels. European commercial real estate investment had increased by 19% in 2021 to reach EUR 256 billion (USD 2.68 billion).
• It is important to note that real estate investment volumes vary significantly across European countries with few European countries dominating the international luxury residential market. France, Italy, Spain, and Portugal are at the top of the list, with Germany, the United Kingdom, Andorra, Greece, Cyprus, and smaller Eastern European markets like the Czech Republic, Croatia, and Montenegro following closely after.
• People's growing preference for luxury amenities and wealthy buyers looking for safe real estate investments are driving demand for luxury residences.