Longboat Key, Florida | May 29th, 2018 – Prospects look bright for sellers of luxury residences moving onwards to 2020. In the Coldwell Banker Global Luxury Report 2018 released recently, the projection is that the ultra-high net-worth individuals is a growing market for luxury real estate.
Citing figures from the market research firm Wealth-X, the Coldwell Banker annual report noted that the number of ultra-rich individuals will surpass the 318,000 mark and that their aggregate net worth would rise 54 percent to $46.2 trillion by year 2020.
As Wealth-X defines it, the ultra-high net-worth consumers are those having assets $30 million or more. Its research shows that property ownership has diversified among these potential buyers of luxury residences. This diversification, it says, is the result of the increasingly globalized business, continuing advances in technology, and the unrelenting expansion of high-speed air travel.
Multiple Luxury Dwellings
Increasingly, the world’s ultra-rich individuals are acquiring multiple properties, Wealth-X notes further. It estimates that at least 50 percent of them own two residences, while about 10 percent of them have five or more residential properties in multiple places worldwide. Evidently, these super-rich homebuyers regard real estate as a vital part of their assets portfolio.
Breaking it down, Wealth-X put the Americas atop the geographic regions with the biggest ultra-rich population, accounting for 43 percent of the world’s total. The research firm, however, anticipates that Asia-Pacific region will add the largest increase in both the count of ultra-rich individuals and their total net worth.
By 2020, the ultra-wealthy in Asia-Pacific countries will contribute $6.4 trillion to the global economy, Wealth-X estimates. It also expects substantial increases in the net worth of the wealthiest citizens in Europe, the Middle East, Africa, and the Americas. The research company forecasts that each of these regions would generate about 30 percent growth in the net worth of their ultra-wealthy citizens during the 2015‒2020 period.
Luxury Listings’ Must-haves
Sellers of residences targeting this luxury market segment have to be aware that the mindset of these potential buyers has also shifted significantly. In the Coldwell Banker annual report, the following must-haves for luxury listings have been enumerated as vital elements in sales of luxury residences.
Displays of ostentatious wealth is declining, as today’s luxury buyers prefer smaller residences over the traditionally larger, high-end dwellings. Instead, luxury buyers are opting to spend more on amenity-rich spaces and sanctuaries better suited to their lifestyle, such as an IMAX theater, his-and-her master suites, or a private gym.
Smart home automation
Just as luxury buyers look for cutting-edge smartphones and intelligent cars, they equally prefer smart residences with the state-of-the-art gadgets. What they seek are the latest devices that control, even from remote locations, the entertainment, temperature, security, and other household features just with the press of a button or the sound of their voice.
Conservation and sustainability are not mere buzzwords for the luxury market segment. Today’s super-rich residential buyers seek out conservation systems and solar-energy panels that will help cut the carbon footprint of their dwellings.
Custom design and features
Artisan, imported, hand-painted finishes: Luxury buyers want to know and establish the unique nature of all the materials, elements, and details so that they can share the story of their residence with family and friends.
Enclosed spaces for sports
Enclosed spaces for team sports such as hockey rinks, tennis and basketball courts, and similar facilities are in demand for the luxury buyers increasingly adopting an active lifestyle.
For years, wine cellars are a consistent in the list of must-haves in luxurious houses. The requests trending now lean toward even much finer spaces such as glass-enclosed wine rooms or dine-in cellars that fully highlight the collection.
Inspired by their travels worldwide, more luxury buyers are looking for resort-type pools, sometimes even multiple pools wherein they can unwind as well as entertain guests.
Large garages are increasingly becoming popular to the super-wealthy, allowing them to showcase to the max their collection of fine cars and big-boy toys.
Showstopping but functional kitchens
Although grand kitchens have always been a favorite, more luxury buyers want a space wherein fine finishes and top of-the-line commercial grade appliances combine to support the family chef in creating a fine dining experience.
In demand now are backyard retreats with built-in kitchens, fire pits and BBQs, as well as outdoor TVs, as these spaces allow additional room to entertain and enjoy outdoor views.
The luxury segment is clearly as dynamic as the other sectors of real estate market. Link up with the Judy Kepecz-Hays team if you are buying or selling a residence. Our in-depth readings of the various elements dictating the tempo of the property market, coupled with the wide industry network we have, combine for a reliable platform toward a successful deal.