Luxury Real Estate: What Matters Most To Today’s Global Elite
Globally, the luxury real estate market has seen both extreme highs and lows within the past year. However, we have found that the population of affluent consumers continues to grow around the world, as does their interest in and emotional relationship with real estate.
In our most recent whitepaper, Luxury Real Estate: What Matters Most To Today’s Global Elite, authored in partnership with luxury consumer researcher, YouGov, we found that interest in purchasing residential real estate remains high, with 38% of the global high-net-worth considering a purchase in the next three years. Though purchasing is in high demand, we have found that globally, selling remains significantly lower at 23%. The impact of this mismatch in purchase intent is resulting in higher prices, less inventory and hesitation on the part of sellers as they manage the process of finding a new home in markets such as San Francisco, California, Hong Kong and beyond.
Our latest research explores the desires of today’s global affluent consumer and what factors they consider when purchasing their next primary residence. We found that across the globe, these individuals view real estate as a “wealth creator,” a status symbol of wealth and success and often, as a deep emotional investment.
Some of the key takeaways from our latest research include:
- IT’S THE RIGHT TIME FOR MOST TO BE IN THE MARKET
- The top of the home market has many buyers and relatively fewer sellers, making it a good time to list if you’re contemplating a move. By getting in when there is less competition but strong interest you can expect to see the best return on your investment.
- EMOTIONS RUN HIGH IN A CATEGORY DOMINATED BY PRACTICAL FEATURES
- For most luxury homebuyers, the emotional value of a property outweighs the practical features. The goal is to have a life well lived: personal growth, security and a customized environment with room for many happy memories. While a home’s amenity suite is clearly important to the decision process, it’s the ability to see oneself living comfortably that brings buyers over the threshold. Read more about what the affluent believe makes a house a “home” in our sharable infographic here.
- VALUE BEATS PRICE
- Luxury homebuyers rank “the value” as twice as important as “the price” in their primary residence. Good value for the money is established in the potential of the neighborhood and the ability to customize a home. For most buyers in this category that means a near-professional quality kitchen, lots of entertaining and family space and, as we observed in our previous report The Rise of the New Aristocracy, outdoor living features that extend the home beyond its walls.
- REAL ESTATE IS A CRUCIAL WEALTH CREATOR
- Homeownership as a path to financial independence continues to play a significant role in wealth creation. Globally, luxury homebuyers seek the safety and stability of real property. Foreign investment, while down from recent peaks, remains an attractive option for many in maturing economies such as Asia and the Middle East.
- PERSONAL WEALTH IS A PREDICTOR OF SUCCESS IN RESIDENTIAL REAL ESTATE
- Multiple sources indicate strong growth in wealth worldwide, a trend we have followed for the past eight years. The fastest growing (Asia) or most affluent per capita (Middle East), regions have an equally impressive budget for their next home.
For more information on the desires of today’s luxury buyer download our latest whitepaper Luxury Real Estate: What Matters Most To Today’s Global Elite at luxuryportfolio.com/whitepaper.