WEALTH REPORT 2023 | 5 MINUTE READ

RE-SHAPING THE LUXURY MARKET: ACCOUTER'S INNOVATIVE STRATEGY INSPIRED BY KNIGHT FRANK'S 2023 WEALTH REPORT

Earlier this month, our New York team attended the Knight Frank Wealth Report Event 2023. This report was a comprehensive analysis of global wealth trends, offering insight into the movements of High Net Worth Individuals across all major regions. It also provided an overview of the current economic climate and its implications for HNWIs around the world, as well as examining the key issues affecting their investment decisions. Following this event, we were provided some valuable insights on how best to serve our clients in today's uncertain environment.

Read on to discover our key findings and how this knowledge has developed Accouter’s approach for 2023…

KEY FINDINGS

The ultra-prime market in 2022 demonstrated remarkable resilience, driven by a surge in new build completions exceeding $25m. Additionally, pent-up demand stemming from Covid-19 restrictions contributed to the market's momentum, with many buyers unable to travel to view properties in 2020 and 2021.

The latter part of 2021 and early 2022 saw a flurry of wealth creation events, including a resumption of M&A activity in global financial centers, which further fueled transactions. Despite the pandemic's initial impact on demand, particularly for urban properties, a revival of city markets occurred towards the end of 2021, coinciding with the lifting of Covid restrictions in Europe, the UK, and the US. This trend continued throughout 2022.

NEW YORK, LA, LONDON

New York maintained its position as the most dynamic super-prime market, witnessing a staggering 244 sales of US$10 million or more. Los Angeles and London secured second and third place, respectively, with 225 and 223 sales. The size of the US super-prime market correlates with the growth in prime prices, where Los Angeles recorded 8% growth and Miami surged with a remarkable 22% increase. Despite the moderate 3% growth in New York last year, it continues to reign supreme in the global super-prime market.

Notably, London's sales remained strong in 2022, despite the introduction of the Register of Overseas Entities in the UK, announced in late February of that year. This regulation mandates that all foreign entities owning UK property register their beneficial owners, which sets the UK apart from other countries in terms of ownership transparency. This development led to speculation about whether some buyers would be discouraged from entering the UK market.

OUR NEW YORK STUDIO APPROACH

“Post pandemic, we can see the global property market bounce back with a healthy vigor. The trend is leaning towards "resort style" aquisitions, with people wanting to buy their "retirement dream" sooner rather than later, due to the changes in work/life balance. There has been a huge upswing of interest in areas like Aspen, Miami and LA, with people opting for more space and better leisure climates.

With this in mind, Accouter are in a wonderful position, we can continue to offer our clients inspired designs based on our global influences. The wealth report also told us that HNWI’s continue to spend a lot of their money on art, property and wine- with the largest sale this year for a collectors item at $140m on a Mercedes from the 1950's. This is very beneficial for us to know, as we are constantly working on sustainability. In 2023, we became B Corp certified, and so to move forwards with these Wealth Report findings, we will continue to work on featuring one of a kind, bespoke antique pieces within our projects. Not only is this great for the planet, but it adds to the opulence and exclusivity of our designs. ”

Karis Samuelson, Associate Director, Accouter New York

You can find our team at the New York Studio at:

1 Crosby St, 3rd Floor, New York, NY 10013.

To stay up to date with our projects, as well as other exciting ventures in the works, make sure to follow our LinkedIn and Instagram.

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