MONACO
INTERNATIONAL LUXURY
PROPERTY EXPO
BACKGROUND
INFORMATION
INVESTORS SHIFT PRIORITIES
TO PURSUE FASTEST GROWING REAL
ESTATE OPPORTUNITIES
Investors shift priorities to pursue fastest growing
real estate opportunities
Real estate in Singapore, Madrid, and Tokyo has increased in price by
more than 10% and demand keeps rising. In the meantime, prices for real
estate in Dubai and London are tumbling as demand slips. The EU and,
in particular, German luxury real estate markets remain the most stable.
In 2018, Berlin real estate enjoyed the highest demand.
he geography of luxury real estate
investment is changing, analysts at the
International Luxury Property Expo (ILPE)
(http://ilpexpo.com/) report. Investors’
focus has shifted toward countries that
have seen an increase in real estate value
over recent years. For instance, prices for
high-end real estate in Singapore have
soared by 11.5%, while in Tokyo prices
have risen by 9.4% and in Beijing, real
estate values have risen by 7.3%. At ILPE
events in 2018, many attendees expressed
interest in Spanish properties, which mirror
the current trends. For instance, prices
have skyrocketed by 10.3% in Madrid.
Germany remains the most attractive
destination in Europe for upmarket real
estate investment. Its popularity can
be credited to its stable economy and a
transparent taxation system. The German
22
real estate market received €57.5 billion in
investment over the previous year alone.
Based on the number of enquiries, real
estate in Germany ranked 1st among the
EU countries at ILPE events.
In general, the European Union generally
retains its investment appeal for upscale
property investors, but 2017 was not an
easy year, where concerns included Brexit
and elections in Germany and France.
Even so, 2018 had a positive effect on the
real estate market which, in turn, resulted
in an increase in luxury real estate prices.
In Berlin, for instance, prices rose by 8.5%
and by 6% in Paris. The most expensive
homes can now be found in Monaco,
where homes fetch US$62.5 per square
meter. On average, prices for high-end
real estate in the EU have grown by 6%.
Western Europe remains the most coveted
investment destination for asset protection.
Political uncertainty has taken its toll on real estate
elsewhere: In London prices declined by 1.8%, and in
Istanbul by 2.4%, while the market in Vancouver, Canada
has plummeted, losing 6.2% of its value.
Several years ago, investors massively favoured the UAE,
but now, with prices dropping an average 6% a year,
investors need to use caution when selecting property.
However, the transaction volume still remains quite high
and the market is expected to recover and prices to rise
by 2020, thanks to World Expo 2020, to be held in Dubai.
International Luxury Property Expo (ILPE)
(www.ilpexpo.com) is a series of B2C
exhibitions dedicated to high-end real estate
that have been held around the world,
including in Cannes, Shanghai, Mumbai,
Moscow, Bangkok, and other cities. The ILPE
events draw HNWIs from across the globe.
The large-scale Monaco International Luxury
Property Expo 2019 will be held 15-16 May in
Monaco’s Grimaldi Forum. It will bring
together 200 developers and 1,000 individual
investors from 80 countries.
The ILPE team works with private
investors directly and eyes the real estate
market worldwide.
The above figures were provided by the ILPE
analytical services.
FORECAST FOR 2019
ILPE analysts report the following trends influencing the
luxury home market in 2019:
• Investor interest in upmarket holiday rental apartments
is growing. This holds true for Europe (e.g. Italy and Spain)
and Asia (Thailand).
• Caution in transactions involving UK real estate in the
aftermath of the Brexit vote, to be observed during the
first half of 2019.
• Europe is gradually withdrawing capital from the
market while investments from Asia and CIS countries,
particularly China, Hong Kong, India, Russia, and
Azerbaijan, are rising steadily.
• The number of deals involving off-plan and pre-
construction properties is increasing.
23