Welcome to the Sotheby’s International Realty 2024 Luxury Outlook—a comprehensive exploration of the luxury real estate market worldwide. While the complete report delves into various topics such as policy trends, real estate opportunities, the impact of demographic shifts, and the luxury rental market, among others, this blog post will specifically focus on the builders’ confidence, and the trend for cash acquisition amid the growing global demand for properties.

As luxury real estate markets try to build back inventory to pre-pandemic levels, some areas are seeing robust new growth amid continuing strong demand from buyers and restored confidence among builders and developers. For instance, in the United States the lack of existing inventory, while there is a strong demand is pushing for more constructions. “In South Florida, luxury new development in West Palm Beach is booming,” says Sonja Stevens, senior global real estate advisor, Sotheby’s International Realty – Palm Beach Brokerage.

Outside the U.S., Thailand is also seeing a renewed demand for new luxury real estate. “There is a clear demand for luxury housing projects and new luxury condominiums, driven by limited supplies and evolving buyer preferences,” says Phakrjira Jansakran, director of sales, List Sotheby’s International Realty, Thailand.

The island is also home to new off-plan projects both in the North and West regions. “ There is a constant supply of new developments on the market and developers are conscious that there is a greater demand for lower price points, while the luxury real estate segment is very niche” says Timo Geldenhuys – Director at Mauritius Sotheby’s International Realty. 

While the demand is rising, the rise in mortgage interest rates has translated into a higher percentage of all-cash deals around the world. Let’s have a look at the global trend. 

During the third quarter of 2023, 57% of the over–US$5 million market were cash deals, says Lisa Larson, associate broker, Sotheby’s International Realty – East Side Manhattan Brokerage. “The majority of over-US$10 million were cash, too”, she says. 

In Dubai, all-cash deals have been the rule rather than the exception. “It’s common for ultra-high-net-worth individuals who choose to buy here to purchase in all cash,” says Honey Deylami, executive partner, Dubai Sotheby’s International Realty. “It’s very rare that ultra-high-net-worth individuals look for a mortgage for their primary or vacation homes.”

The same trend was noticed in South Africa, where some 70% of luxury real estate purchases are all-cash deals in Cape Town, a long time trend that shows no signs of diminishing, according to Claude McKirby, owner and director, Lew Geffen Sotheby’s International Realty.

In Mauritius, while the minimum investment for residency is USD 375 000, buyers from around the world had to confine themselves to specific property programs to buy a property in Mauritius. 

However, foreigners who already are residence permits holders, can now explore a broader range of properties in Mauritius beyond the existing approved schemes.

Indeed, the much-anticipated regulatory updates have expanded the options for foreigners looking to invest in properties, provided there’s a minimum investment of USD 500 000.

If you’re looking for a property to rent or buy in Mauritius, contact us – info@sir.mu