As the U.S. Dollar surges, American buyers splurge on European homes.
Taking advantage of the most favorable exchange rates in a generation, and reeling from exploding prices at home, buyers are disregarding other sources of instability—including the threat of coronavirus flare-ups, rising interest rates, travel disruptions, and the war in Ukraine—to sink their dollars into European residential real estate, with savings on luxury properties, compared with last year, reaching into seven figures.
With the exception of Lisbon—where prices rose 11.5% between the first quarter of 2021 and the first quarter of 2022—price gains in local currencies are modest to nonexistent in these markets. According to the most recent Knight Frank Global Residential Index, prices in greater London and Paris rose less than 5% between the first quarter of 2021 and the first quarter of 2022, while prices in Florence, Tuscany’s capital, dropped 1.6% during the same period. By comparison, America dominates the Knight Frank study, with nine of the top 20 spots held by U.S. cities. The top three, Phoenix, Miami and San Diego, have seen prices rise 29% or more.
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