While the luxury real estate market is not immune to economic influences such as rising interest rates, it does react differently.
Because luxury buyers rely less on credit, their buying decisions may be less sensitive to spikes in interest rates and more influenced by the stock market or inflation.
Luxury Real Estate – It’s Not Like Other Markets
“The reason for buying into luxury real estate as an investment is primarily that the capital values are expected to appreciate over the long-term, due to location and scarcity of supply,” Steve Tay, senior associate vice president, List Sotheby’s International Realty, Singapore says. “This still holds true even in a high-interest-rate environment.”
In this article from Sotheby’s International Realty, learn more about how the luxury market, cash buyers, inflation and the stock market cross-influence current conditions.
