Cash Still King for Luxury Homes Globally
• Cash purchases are commonplace for high-end homes in Dubai, with ultra high-net-worth individuals rarely taking out mortgages.
• 70% of luxury real estate sales in Cape Town, South Africa are all-cash deals, aided by favorable exchange rates for foreign buyers.
• Over half of NYC homes sold for $5M+ were all-cash purchases in Q3 2022, with most over $10M being cash deals.
• Hong Kong luxury buyers often make purchases through separate corporate entities, with some taking 10% mortgages to avoid money laundering scrutiny of all-cash deals.
• Montecito, California has historically seen cash deals across price points, with the percentage increasing for more expensive homes.