Market Size of Europe Luxury Residential Real Estate Industry
| 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 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 Size Summary
The European luxury residential real estate market is experiencing a phase of recovery and growth, following the challenges posed by the COVID-19 pandemic. Despite initial setbacks, such as a decline in sales transactions due to lockdowns, certain regions like the French Riviera demonstrated resilience, maintaining demand and stable pricing. The market is characterized by a strong preference for luxury amenities and safe investment opportunities, attracting wealthy buyers. Key countries such as France, Italy, Spain, and Portugal lead the market, with significant investment volumes also seen in Germany and the United Kingdom. The scarcity of available space, coupled with high land and construction costs, continues to drive up rental prices, particularly in prime locations.
The competitive landscape of the European luxury residential real estate market is marked by the presence of both local and international players, contributing to increased competition and pricing. Major real estate companies, including Segro, L E Lundbergfoeretagen AB, and Covivio, hold significant market value, reflecting the sector's attractiveness as an investment opportunity. The market's growth is further fueled by trends such as upgrading existing residences, a renewed interest in second homes, and lifestyle changes prompting moves to suburban areas. The entry of new investors and developers has heightened demand and supply, making the market fragmented and highly competitive. Notable transactions, such as Slate Asset Management's acquisition of key properties in Norway and Instone Real Estate's collaboration in Germany, underscore the dynamic nature of the market.
Europe Luxury Residential Real Estate Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Industry Policies and Regulations
-
1.3 Government Regulations and Initiatives
-
1.4 Supply Chain/Value Chain Analysis
-
1.5 Insights into Technological Innovation in the Events Logistics Sector
-
1.6 Impact of Geopolitics and Pandemic on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Type
-
2.1.1 Villas/Landed Houses
-
2.1.2 Condominiums/Apartments
-
-
2.2 By Country
-
2.2.1 Germany
-
2.2.2 United Kingdom
-
2.2.3 France
-
2.2.4 Italy
-
2.2.5 Russia
-
2.2.6 Rest of Europe
-
-
Europe Luxury Residential Real Estate Market Size 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.
