Buying ‘Unseen’ At Auction On The Rise

Would you spend millions of pounds on a property on the other side of the world that you may not even have seen in person? A growing number of investors are doing exactly that.

The international market for luxury property is well established, but in recent years, the number of such homes sold at auction, often to overseas buyers who haven’t conducted a viewing, has increased rapidly.

“Buying luxury property at auction is becoming more commonplace,” says Chad Roffers, CEO of Concierge Auctions, a marketplace run by Sotheby’s, the international auction house that has a significant real estate business. “Buyers appreciate the opportunity and transparency that luxury auctions bring.

Real estate firm Knight Frank, which each year publishes The Wealth Report, says 44% of family offices worldwide are now looking to increase their exposure to property (that follows a fall in investment volumes since the peak of the market in 2021). Data from Christie’s shows a similar trend. A recent survey conducted by the firm found 74% of US real estate agents expect demand for luxury property to increase this year, with 58% of their counterparts in Europe and Asia saying the same.

Luxury property markets popular with international investors include both bustling cities and idyllic holiday destinations. In the US, New York vies with Los Angeles for prestige sales, while in Europe, buyers focus on London, Rome and Paris. Dubai, Singapore and Cape Town are also magnets for the wealthy. For those seeking sun, sea and sand, Caribbean properties remain hugely in demand, while Malta is a relatively new European hotspot, boosted by citizenship schemes that enable wealthy investors to establish residency in the European Union.