Ultra-luxury real estate and Los Angeles go hand in hand—just look at the 2021 receipts for proof.
According to Compass’ inaugural Ultra-Luxury Real Estate Report, which focused on year-over-year residential real estate sales at $10 million and above within 30 key markets across the country, L.A. was the top market for ultra-lux sales last year.
Collectively, the brokerage tracked more than 2,300 residential properties that sold at or above $10 million in 2021, a 111.6 percent increase over 2020. Los Angeles was the top market with a total of 628 transactions, accounting for 27.3 percent of all residential sales at or above $10 million.
Greater L.A. saw $10.6 billion in ultra-lux sales last year, a 90.3 percent increase in transaction volume and a 97.5 percent increase in sales volume, compared to 2020. Los Angeles was followed by Manhattan with $6.31 billion in ultra-luxury sales and Palm Beach with $3.75 billion in sales.
(Special shout out to California Listings Malibu expert and Compass superstar Chris Cortazzo, who surely helped raise L.A.’s ultra-lux figure with his own $1 billion sales haul last year!)
Compass notes that a host of factors, including tech industry growth, consumer lifestyle changes and historically low-interest rates, made 2021 one of the most unique and profitable years the industry has ever seen, particularly within the ultra-luxury sector.
“The pandemic only accelerated the need for abodes that double as sanctuaries,” said Lena Johnson, Co-Head of Compass’ Luxury Division. “Substantial year-over-year increases within this elevated price bracket, where it is not uncommon for people to own multiple homes in prime localities, demonstrates that beautiful homes are always in vogue.”
When looking at 2021 transaction volume changes compared to the year prior, Austin experienced the greatest increase of sales at $10 million and above at 450 percent, followed by Suburban Long Island (excluding the Hamptons) at 400 percent, and the Coconut Grove, Coral Gables and Key Biscayne area of Florida at 233.3 percent.
To read more of Compass’ report, click here.