Navigating the Global Real Estate Landscape: Key Insights from The Wealth Report 2024

Knight Frank’s exploration of global wealth trends highlights how shifting wealth patterns, technological disruptions, and sustainability considerations are reshaping both residential and commercial real estate worldwide. 

What follows is an integrated overview of the most significant findings and their implications for property investors and homeowners.

Real Estate Resilience Amid Higher Rates

Higher global interest rates have certainly tempered some deal activity, yet real estate has proven unexpectedly resilient.

Prime residential

According to the Prime International Residential Index (PIRI 100), luxury housing markets still averaged a significant price increase. Cities like Manila, Dubai, and select US markets led, supported by a shortage of new development in many gateway locations.

Commercial real estate

Overall investment volumes declined by 46%, due mostly to more expensive financing. Despite this, private investors (including ultra-high-net-worth individuals, or UHNWIs) remained significant players, accounting for nearly half of global transaction activity.

Hot Spots and New Contenders

Geographically, emerging urban centers are rivalling legacy markets. In Asia-Pacific, growing wealth in India and mainland China is revitalizing demand for prime homes in Singapore, Hong Kong, and Tokyo. 

Meanwhile, Paris, Milan, Dubai, and Miami challenge well-established hubs such as London, New York, and Los Angeles through attractive tax regimes and lively cultural scenes.

On the commercial side, the living sectors (e.g. multifamily, student housing, and senior living) remain an investor favorite due to consistent rental demand, while trophy offices in prime areas still command premium prices. 

The industrial and logistics sectors continue to benefit from e-commerce growth and onshoring trends, diversifying opportunities for both institutional and private investors.

Sustainability Meets Opportunity

Sustainability is fast becoming a core differentiator for real estate projects. Nearly 60% of survey respondents evaluated property deals against environmental criteria such as energy efficiency ratings and recognized certifications, an indication of the surging green premium.

The upgrade of older buildings to meet modern energy standards, alongside investment in farmland and forestry for carbon credits and regenerative agriculture, reflects a growing awareness of ESG goals and the climate change imperative.

Property owners and developers who adapt the quickest to sustainability demands—via green retrofits, on-site renewables, or low-carbon designs—are likely to see higher valuations and stronger rental prospects.

The AI Factor and Future Outlook

The rapid expansion of artificial intelligence is influencing real estate in two main ways:

• First, by spurring demand for data centers, life science labs, and collaborative office formats in technology clusters. 
• Second, by improving how investors and developers analyze property deals. AI-driven methods now help pinpoint undervalued sites at scale, enhancing due diligence and speeding up decision-making.

On a broader horizon, moderating interest rates could set the stage for renewed activity in prime residential markets, while commercial opportunities abound in healthcare, biotech, and specialized office space as demographic and technological shifts accelerate.

Luxury Property in Mountain and Ski Resorts

Beyond urban hubs and beachside hotspots, prime mountain and ski resorts rank among the strongest-performing segments. 

A combination of restricted supply, strong tourism flows, and a global appetite for wellness-oriented lifestyles has encouraged prices to increase. Resorts are also seeking to diversify amenities beyond winter sports—through summer hiking, mountain biking, and wellness retreats—further extending rental seasons and ownership benefits.

Investors looking for both lifestyle enjoyment and rental returns find these high-altitude markets especially appealing, with professionally managed properties helping to maintain yields and handle ongoing ESG upgrades.

Apart from Courchevel, Val d’Isère, and St. Moritz, Verbier is among the ski resorts that attract the biggest number of HNWIs. 

If you want to live the ultimate Alpine lifestyle of luxury and natural beauty, Schraner Luxury Realty is at your service. Our exclusive portfolio of luxury properties in Verbier offers an extraordinary living experience.

Action Points for Investors and Homeowners

Identifying robust opportunities will require a nuanced approach. Focusing on under-supplied global cities that offer meaningful incentives for wealthy individuals can still yield strong capital appreciation. 

Retrofits of older commercial and residential stock, compliant with strict sustainability standards, are increasingly popular among tenants. Meanwhile, farmland and forestry assets serve new roles as nature-based solutions to climate challenges, though regulatory complexities demand expert guidance.

For many investors, a degree of agility is essential. With trillions of dollars in commercial real estate loans maturing globally by 2027, there may be an uptick in “motivated seller” scenarios that reward those prepared to act quickly.

A Market Primed for Reinvention

Despite geopolitical upheavals, climate concerns, and interest rate shifts, real estate continues to demonstrate remarkable staying power. The adaptability of both residential and commercial property in a post-pandemic, technology-driven world is definitely something to keep in mind. Private investors still gravitate to bricks-and-mortar for wealth preservation and diversification, drawn by long-term resilience and the scope for lifestyle synergies.

From mountain chalets to city penthouses, success will depend on recognizing the importance of sustainability, harnessing emerging technologies, and seizing opportunities in growing or reinventing markets.

Contact Schraner Luxury Realty if you’re considering purchasing a luxury property in Verbier.