The luxury market in 2021: sky-high prices, scandals and acquisitions – Inman

December 18, 2021 by No Comments

The luxury housing market had a strong year in 2021. High net worth individuals continued to buy and sell homes at a quick pace as they and their businesses generally thrived amid the continued trend of working from home.

As a result, many luxury agents had outstanding years. The percentage of existing single-family home sales priced above $1 million also shot up this year, which helped agents in this market sector, as home prices across the country more generally surged.

But 2021 also saw some significant shakeups in the luxury real estate world — a number of acquisitions changed the scene and a major industry figure stepped out of the limelight. Tragedy also found the luxury market this year when a condo building in Miami collapsed and took numerous lives with it.

But luxury real estate wouldn’t be the same without its penchant for scandal and big price tags, and 2021 delivered this as well.

Here’s all you need to know about what happened in the luxury market in 2021.

Major acquisitions

NASA / Unsplash, @properties and Christie’s

A number of major companies in the luxury realm were involved in big acquisitions this year.

The splashiest was probably @properties’ acquisition of Christie’s International Real Estate, which was announced in November. After a competitive process drawn out over the course of a few months, @properties earned the luxury giant’s trust enough to prove they were the best company to help guide the Christie’s International Real Estate brand into the future.

At the time, @properties co-CEO and co-founder Thad Wong said he hoped to shape Christie’s International Real Estate into “the most valuable luxury real estate brand in the world” by combining the company’s already eminent brand name with @properties’ top-notch technology, marketing, coaching and company culture. Wong added that the brand is “a beautiful Ferrari frame” that @properties planned to infuse with new life.

Realogy and Sotheby’s auction house (not the Realogy brand) also teamed up this year to buy luxury real estate auction marketplace Concierge Auctions. The deal bestowed the two companies with a 80 percent joint ownership stake in Concierge Auctions with Sotheby’s and Realogy executives joining the auction marketplace’s Board of Managers. Concierge Auctions would continue to operate independently after the transaction was closed.

“As demand for luxury real estate auctions increases, we believe Realogy and Sotheby’s can jointly bring powerful data and network scale to Concierge Auctions, a valuable tool for real estate agents helping clients expertly navigate the global high-end property market,” Realogy President and CEO Ryan Schneider said …….

Source: https://www.inman.com/2021/12/17/the-luxury-market-in-2021-sky-high-prices-scandals-and-acquisitions/

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