Luxury Market Report | February 2021 by Erin Sykes | At the beginning of the pandemic, the luxury real estate market fell faster than any other industry, however, within a few months it rebounded with a vengeance and reconfirmed its resiliency. The V-shaped recovery of luxury is also evident in the public sector, as shown by the S&P Global Luxury Goods Index compared to the S&P 500. Demand for single-family homes, private outdoor space and enough room to work remotely will drive robust luxury home sales in 2021, benefiting some of the world’s top luxury markets more than others. With economic recovery underway, a vaccine boosting confidence and a strong stock market, the continued “wealth effect” will drive the ultra-luxury market even further. 2021 will thus be a strong year for cities with ample single-family housing stock, preferably on large lots, as is the case in places such as Los Angeles, Palm Beach, and Miami.