If you think that buying a house is a rich person’s game, well, you might be right.
A new report from worldwide real estate agency Kight Frank shows that luxury homes prices are growing at a rate that’s outpacing other types of homes. Globally luxury homes now cost roughly 8.2 percent more than they did before.
In North America, things are a little more expensive with an average luxury market growth of 16 percent. In Toronto, things are even pricier as the market exploded up 27 percent in the first six months of 2021. This means Toronto has the fastest-growing luxury home market in the world. Shanghai, China comes in second place.
“Lack of product and perceived options are pushing those with money to pay more, while at the same time pushing those with exceptional houses to be afraid of moving. Shortage of options always pushes pricing to new heights,” said Richard Silver from Sotheby International in a quote to Storeys.