Luxury home sales in the world’s major real estate markets showed mixed results in the second quarter of this year, according to a global report by Knight Frank.
The report found that sales of homes priced at $10 million or more doubled in New York, while Miami saw its sales cut by half. This marks a reversal for Miami, which had experienced record levels of luxury transactions since 2020 due to an influx of wealthy buyers.
Dubai and New York were identified as leaders in the luxury market. Dubai recorded 143 sales totaling $2.6 billion, while New York closed 120 deals with a combined value of $2.9 billion. Los Angeles followed with 73 luxury home sales amounting to $1.6 billion.
New York’s performance represented a 97 percent increase in deal volume compared to the same period last year, when there were 61 deals. The dollar volume rose by 184 percent from $1 billion in the previous year’s second quarter. The report attributed New York’s strong showing to demand for high-end condos and resales of luxury townhouses, with foreign buyers playing a significant role.
In contrast, South Florida experienced a decline. Miami’s sales of homes priced above $10 million dropped by 52 percent year-over-year, from 52 to 25 transactions. The total value also fell by 53 percent, from $1 billion to $495 million. Palm Beach saw an 18 percent decrease in both the number of deals and dollar volume, with sales falling from 39 to 32 and total value dropping from $725 million to $594 million.
Brokers in South Florida have cited market uncertainty and recent tariff policies as contributing factors for the downturn. Nathan Zeder, part of Coldwell Banker’s Jills Zeder Group, told The Real Deal last month, “Liberation Day and trade wars aren’t what we had on our bingo card.”
Additional challenges such as new safety regulations and rising insurance costs have affected the condo market, with some economic indicators suggesting caution ahead.
