Europe Luxury Residential Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 126.40 Billion |
| Market Size (2029) | USD 153.80 Billion |
| CAGR (2024 - 2029) | 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Luxury Residential Real Estate Market Analysis
The Europe Luxury Residential Real Estate Market size is estimated at USD 126.40 billion in 2024, and is expected to reach USD 153.80 billion by 2029, at a CAGR of 4% during the forecast period (2024-2029).
The luxury residential real estate market in Europe is undergoing significant changes, driven by global expansion strategies and innovations in smart home technologies. Developers in the luxury residential sector are increasingly incorporating green building standards and smart home technologies to attract environmentally conscious buyers. An industry report in November 2024 identified 1,623 smart home startups operating across Europe. Leading companies such as Assa Abloy, F-Secure, Tibber, tado°, and Airthings are at the forefront of smart technology integration. These firms offer a comprehensive range of solutions, including mechanical and electromechanical locking, access control, entrance automation, and advanced security systems. The increasing adoption of these technologies underscores the rising demand for technologically advanced luxury homes throughout the region.
In April 2024, Raimon Land (RML), a prominent luxury property developer, announced its strategic plan to enter the European real estate market by 2025. The company projects that within the next 3-5 years, its revenue will be evenly distributed between domestic and international markets, highlighting a strategic emphasis on international growth.
Moreover, tax incentives are playing a crucial role in stimulating growth within specific market segments. For instance, in September 2024, Portugal introduced exemptions for real estate transfer tax and stamp duty for young buyers up to the age of 35 purchasing their first permanent home. This initiative applies to both foreign nationals and Portuguese residents who meet specific residency requirements, thereby encouraging investment in luxury properties while providing financial relief to younger investors.
Europe Luxury Residential Real Estate Market Trends
France Leads the Luxury Residential Real Estate Market in Europe
France plays a crucial role in Europe's luxury residential real estate market, with Paris and the French Riviera attracting substantial foreign investments. The country's rich cultural heritage, upscale lifestyle, and appealing tax incentives make it a prime destination for wealthy buyers.
Recent research from an industry organization underscores Paris's growing appeal to foreign investors. International buyers account for 8.1% of real estate transactions in the city. Delving deeper, 5.2% are foreign residents in France, and 2.9% come from overseas. The 4th arrondissement stands out, attracting 17% of foreign interest, followed by the 3rd and 12th arrondissements with 16% and 4.9%, respectively.
Outside of Paris, the French Riviera cements its reputation as a top luxury destination. The region, renowned for its upscale properties suited for both primary and secondary residences, saw real estate investments soar to EUR 2.1 billion (USD 2.29 billion) in 2023. Its lasting appeal is a cocktail of a desirable leisure lifestyle, superb connectivity, and a prestigious global standing, drawing the elite from around the world.
France's tax policies significantly influence its luxury real estate scene, particularly for high-net-worth individuals. Starting in 2024, properties valued above EUR 1.3 million (USD 1.42 million) will incur a progressive wealth tax between 0.5% and 1.5%, based on the property's value. These tax considerations are crucial, shaping the investment decisions of wealthy buyers as they navigate France's intricate real estate landscape.
Rising Demand for Luxury Villas and Landed Houses
The European luxury residential real estate market is experiencing significant demand for exclusive properties, particularly luxury villas and high-end residences. This trend is driven by the growing preference for more spacious and private living environments, as well as the continued popularity of areas renowned for their premium offerings. The demand for luxurious villas and homes in Europe remains robust, with notable shifts in pricing and market focus.
According to a September 2024 industry report, Europe’s housing market continues to reflect the region’s economic health, with emerging shifts in consumer confidence and investment trends. Despite recent economic challenges, Europe’s luxury housing market has demonstrated resilience, presenting strategic opportunities for investors in high-end real estate. The easing of interest rates throughout 2024, coupled with a more stable economic environment, has contributed to an optimistic outlook for luxury property buyers and investors in the region.
Furthermore, luxury housing projects in key European markets, such as Spain, have experienced substantial growth. As of October 2024, luxury home prices in Spain have increased by 37% since 2019, particularly for properties valued over EUR 3 million (USD 3.27 million). Areas like Altea, Calpe, Benidorm, and Moraira are experiencing a boom in demand for premium villas. Consequently, Spain’s luxury housing market is expected to continue expanding, with the average price of luxury properties projected to rise to EUR 5.4 million (USD 6.02 million) by 2024, reflecting strong demand and market confidence.
Europe Luxury Residential Real Estate Industry Overview
The European luxury residential real estate market is fragmented and highly competitive. Europe's luxury residential real estate market is competitive with the presence of local and international players. Competition and pricing have increased as new investors and developers have entered the market, leading to an increase in the demand and supply of real estate.
Some of the top players in this market are Mansion Global, Proprietes Le Figaro, Sotheby's International Realty Affiliates LLC, John Taylor, Luxury places SA, Haussmann Real Estate, Rodgaard Ejendomme, Juvel Ejendomme, Barnes International Realty, and Belles Demeures, among others.
Europe Luxury Residential Real Estate Market Leaders
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Mansion Global
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Proprietes Le Figaro
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Sotheby's International Realty Affiliates LLC
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John Taylor
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Luxury places SA
*Disclaimer: Major Players sorted in no particular order
Europe Luxury Residential Real Estate Market News
- May 2024: Hagag Development Europe has acquired the residential project "Obor Est Residence," located in East Bucharest on the former "Izolatorul" industrial platform. Following enhancements to the overall concept and design, the company has rebranded and relaunched the project under the Hagag name. The development is currently underway on a land plot exceeding 17,500 square meters, targeting the medium market segment.
- May 2024: Bloom Holding and LEAD Development Unveil Luxury Residential Project in Spain. In a significant move, two prominent players in the real estate sector have joined forces to develop the "Mabel Marbella Residences". Spanning over 100,000 sqm, the project is set in the prestigious Golden Mile, one of Marbella's most sought-after residential locales.
Europe Luxury Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Policies and Regulations
4.3 Government Regulations and Initiatives
4.4 Supply Chain/Value Chain Analysis
4.5 Insights into Technological Innovation in the Events Logistics Sector
4.6 Impact of Geopolitics and Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Sustainability as a Priority
5.1.2 Lower Financing Costs
5.2 Market Restraints
5.2.1 Economic Uncertainty
5.2.2 Financing Challenges
5.3 Market Opportunities
5.3.1 Undervalued Prime Properties
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Villas/Landed Houses
6.1.2 Condominiums/Apartments
6.2 By Country
6.2.1 Germany
6.2.2 United Kingdom
6.2.3 France
6.2.4 Italy
6.2.5 Russia
6.2.6 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Mansion Global
7.2.2 Proprietes Le Figaro
7.2.3 Sotheby's International Realty Affiliates LLC
7.2.4 John Taylor
7.2.5 Luxury places SA
7.2.6 Haussmann Real Estate
7.2.7 Rodgaard Ejendomme
7.2.8 Juvel Ejendomme
7.2.9 Barnes International Realty
7.2.10 BellesDemeures*
- *List Not Exhaustive
7.3 Other Companies
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution, by Activity)
9.2 Economic Statistics - Transport and Storage Sector Contribution to the Economy
9.3 External Trade Statistics - Export and Import, by Product
Europe Luxury Residential Real Estate Industry Segmentation
Luxury residential real estate refers to properties specifically designed for human habitation and offers a charming, resort-style lifestyle with high-end facilities.
The European luxury residential real estate market is segmented by type (villas/landed houses and condominiums/apartments) and country (Germany, United Kingdom, France, Italy, Russia, and the Rest of Europe). The report offers market size and forecasts for the Europe Luxury Residential Real Estate market in value (USD) for all the above segments.
| By Type | |
| Villas/Landed Houses | |
| Condominiums/Apartments |
| By Country | |
| Germany | |
| United Kingdom | |
| France | |
| Italy | |
| Russia | |
| Rest of Europe |
Europe Luxury Residential Real Estate Market Research FAQs
How big is the Europe Luxury Residential Real Estate Market?
The Europe Luxury Residential Real Estate Market size is expected to reach USD 126.40 billion in 2024 and grow at a CAGR of 4% to reach USD 153.80 billion by 2029.
What is the current Europe Luxury Residential Real Estate Market size?
In 2024, the Europe Luxury Residential Real Estate Market size is expected to reach USD 126.40 billion.
Who are the key players in Europe Luxury Residential Real Estate Market?
Mansion Global, Proprietes Le Figaro, Sotheby's International Realty Affiliates LLC, John Taylor and Luxury places SA are the major companies operating in the Europe Luxury Residential Real Estate Market.
What years does this Europe Luxury Residential Real Estate Market cover, and what was the market size in 2023?
In 2023, the Europe Luxury Residential Real Estate Market size was estimated at USD 121.34 billion. The report covers the Europe Luxury Residential Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Luxury Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Luxury Residential Real Estate Industry Report
Statistics for the 2023 Luxury Residential Real Estate in Europe market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Luxury Residential Real Estate in Europe analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Europe Luxury Residential Real Estate Market Report Snapshots
