The luxury real estate market is experiencing significant development due to the continued growth in global wealth and the increasing number of affluent individuals. A study by CBRE shows that key European markets such as London, Paris, Milan and Amsterdam in particular are experiencing changes, driven by the increasing demand for luxury real estate in various sectors such as retail, hotels and residential.
In the retail sector, luxury retail brands are outperforming the mass market, according to the study. This is also reflected in the rental and capital value growth of real estate. In addition, the focus is shifting from traditional luxury shopping streets to new luxury districts, which are increasingly emerging outside established luxury locations. There is also a shift in the types of stores. Stores for cosmetics and household goods are currently replacing traditional clothing stores.
According to the study, the luxury hotel market is also showing a positive trend, with the demands of the younger, wealthier generations changing service standards. This clientele is looking for authentic, meaningful travel experiences, which is increasing the demand for unique and experience-oriented luxury hotels. In the residential sector, there is an increase in demand for sustainable properties in less densely populated areas and for high-quality second homes, with European cities such as London and Paris remaining particularly popular.
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