Market Size of Europe Luxury Residential Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Luxury Residential Real Estate Market Analysis
The size of Europe Luxury Residential Real Estate Market is USD 124.6 billion in the current year and is anticipated to register a CAGR of over 4% during the forecast period. The COVID-19 pandemic significantly impacted the luxury housing market, which saw a drop in sales transactions. Due to pandemic restrictions and lockdown measures, sales in Europe were hampered.
- The sector is in the recovery phase, and in a few European countries, like France, the market was resilient during the COVID-19 pandemic. The market in the French Riviera remained resilient even during the pandemic crisis, with high demand and stable price development in the luxury market. Despite the general uncertainty surrounding the economy, European residential markets, in most cases, showed at least minor growth in pricing. The real estate sector in France and Germany has seen tremendous growth in investment volumes.
- In 2021, the European real estate market made a robust comeback, with year-end figures approaching pre-pandemic levels. European commercial real estate investment had increased by 19% in 2021 to reach EUR 256 billion (USD 2.68 billion).
- It is important to note that real estate investment volumes vary significantly across European countries with few European countries dominating the international luxury residential market. France, Italy, Spain, and Portugal are at the top of the list, with Germany, the United Kingdom, Andorra, Greece, Cyprus, and smaller Eastern European markets like the Czech Republic, Croatia, and Montenegro following closely after.
- People's growing preference for luxury amenities and wealthy buyers looking for safe real estate investments are driving demand for luxury residences.
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
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.2 Restraints
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1.2.3 Oppurtunities
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1.3 Value Chain / Supply Chain Analysis
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Government Initiatives and Regulatory Aspects
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1.6 Impact of COVID - 19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Villas/Landed Houses
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2.1.2 Condominiums/Apartments
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2.2 By Country
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2.2.1 Germany
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2.2.2 United Kingdom
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2.2.3 France
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2.2.4 Italy
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2.2.5 Russia
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2.2.6 Rest of Europe
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Europe Luxury Residential Real Estate Market Size FAQs
What is the current Europe Luxury Residential Real Estate Market size?
The Europe Luxury Residential Real Estate Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
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.
