The real estate market continues to face challenges such as high mortgage rates, soaring home prices, and limited housing inventory, contributing to the ongoing housing affordability crisis
However, a recent report from Mordor Intelligence predicts that the global luxury real estate market will register a CAGR (compound annual growth rate) of more than 2% each year over the next five years. New players are to appear on the market, and the existing companies raise their presence, creating a highly competitive environment.
Given the current economic challenges and the intensely competitive market, the real estate sector must enhance its performance. According to McKinsey's research
, incorporating technologies into operational pipelines stands out as one of the most impactful ways to boost productivity.
According to Forbes Global Properties' analysis, luxury markets are more resistant to rising inflation than the broader housing market. Affluent buyers in these markets are also less affected by concerns about affordability and interest rates, which significantly impact housing markets worldwide. This resilience empowers the luxury sector to adopt innovation, allocate resources for growth, and improve performance.