Luxury real estate. The term is tossed around so many times but can vary considerably based on location. Around the globe…
Luxury real estate. The term is tossed around so many times but can vary considerably based on location. Around the globe, the average entry price for a luxury home varies from $1 million to well above $10 million. The limit really has no maximum. The highest price on a home for sale in 2017 was $360 million. That was for a property in Hong Kong’s upper echelon real estate in the Peak neighborhood.
Ultra-luxury homes, also known as trophy homes, meet the highest standard of price and quality. They are the pinnacles of design, technology, build, and finishes. Expect opulent amenities that value health and human comfort above all, and inspire awe and wonder in the viewer. These homes are like art museums in every shape and form.
Let’s break down the top 5 qualifiers of an ultra-luxury home. But first, we’ll examine the difference between luxury and ultra-luxury homes.
The Difference between Luxury and Ultra Luxury Real Estate?
Some homes cost millions while others don’t. The reason? Location.
Homes that have more land, are in private and exclusive areas, offer incredible views, and have more discretion are in greater demand than ones without those features. That’s why a home in a global commerce and lifestyle hub like Manhattan sells for more than a home in Topeka, Kansas.
What else sets ultra-luxury homes apart? Their square footage, finishes, and amenities. With customized design work and artisanal touches, a $2 million dollar house becomes $4 million.
The perceived value increased with each customized touch. Whatever makes a home unique is its selling proposition.
Top 5 Factors Of Ultra-Luxury Homes
Gathering the insights and impressions of expert real estate agents and affiliates, here’s a glimpse into buyer preferences. The definition of luxury is constantly changing, but certain factors stay the same…
1 | Moving Beyond Location, Location, Location
Big-time addresses and prominent ZIP codes aren’t exactly the foundational necessity for ultra-luxury homes. Millionaires and billionaires are visualizing luxury homes beyond the typical traditions. They’re willing to pay more if the amenities and offerings match their lifestyle. High-end commercial real estate also inspires and informs residential homes and their upgraded amenities.
Domestic and international buyers are becoming more willing and open to accepting property outside of their traditional and comfortable visions. Because of improved buildings and the increased development of residential areas, buyers are willing to compromise on classic ideas of luxury. Luxury can be found anywhere, even in the most non-traditional locales.
Luxury homes in desirable locations can be found anywhere in the world. Whether on the slopes of Aspen or the mountains in Hawaii or the beaches of Malibu, the beauty of the planet is the calling card. Wealthy neighborhoods in close proximity to adventure and high-end lifestyle activities like fine dining, art and culture, golf courses, and shopping centers are in high demand. Safe and quiet neighborhoods with landscaping and privacy are the basis for ultra-luxury homes.
2 | Lifestyle and Ultra-Luxury Compatibility
Luxury can also go beyond the four walls of a home–it can affect the general community and environment. Homes that positively affect their planet and their community are in higher demand for wealthy buyers. When sustainable and healthy environments are at the forefront of architecture and design, wealthy buyers jump on that. Homes can fuel their mission and purpose.
Knowing where products come from and how they’re manufactured really feeds the trend of conscious living and promotes beauty and sustainability. Luxury isn’t just materialistic opulence, it goes deeper now, touching the elements of earth and thoughtful design. Buyers are looking to enhance their lifestyles and align their values with their daily lives. Homes do this when they’re engineered to support ecosystems instead of damage them.
Ultra-luxury home buyers are more likely to buy from places that are energy-efficient and environmentally conscious in their construction and amenities. A home that is also in close proximity to rich culture and outdoor adventures, along with great volunteer opportunities can really make a difference from luxury to ultra-luxury.
3 | Experiences Are Valuable
Wealthy buyers and consumers are exposed to information at a higher rate than ever. They’re more sophisticated and cultured as well. Baby boomers are less likely to consume and more likely to experience. High net worth individuals (HNWIs) are following the trend of luxury experiences offered by prestigious brands more than ever.
Areas such as education, travel, luxury goods, and art are all meshing together to create a focused real estate experience. The focus is on connecting clients to art and culture. Luxury is becoming a comprehensive, holistic umbrella of architecture, travel, and design. Enjoyment of a property goes beyond typical and traditional possession and ventures into a meaningful experience.
This shift affects both amenities and lifestyle preferences as well. Buyers are more likely to spend money on rooms that prompt healthy experiences like a meditation room or an outdoor shower, or a greenhouse garden. Spending money on things that create meaning and enhance purpose can really open up the boundaries of what an ultra-luxury home means.
4 | Convenience is Key
With the popularity of urban downtown hubs in major cities, home-buying preferences are changing drastically. The emphasis on urban life is increasing, even with older generations like baby boomers. As millennials age as well, we’re seeing an increase in affluent older buyers in urban areas. Suburban areas are also more likely to increase their urban offerings and amenities.
Many adults who’ve become empty nesters are looking for large condos and townhome units that are within walking distance of lively shopping centers filled with theaters, restaurants, and offices. It’s a form of “downsizing” but maintaining the desire for luxury. Many affluent buyers are trading up their homes in the country for a home in the city, even aged 50 and above. The demand for new and modern buildings in city centers is growing daily. Being close to transportation and nightlife are big positives for people looking to enrich their lives rather than staying cloistered in their homes.
5 | Ultra-Luxury Means Ultra Space
Luxury travel is huge. What’s becoming even more of a trend is multi-generational travel. A luxury travel report noted that this has become a noteworthy trend for families involving at least three generations. As luxury tourism increases, real estate markets selling ultra-luxury homes in resort destinations are seeing a high demand for properties. Families are looking for spaces that can provide room for generations and entertain the entire family. They need flexible and adaptable homes. Ultra-luxury spaces are bending to their needs.
There’s an increased desire for family spaces that house adults, children, grandchildren, and elderly parents. This creates a need for spaces like guesthouses, playrooms, bedrooms, and family dens. There’s a need for decks, pools, gardens, and large kitchen spaces. This means more square footage and greater emphasis on experiential spaces.
A wide array of entertainment and amenities is at the forefront of ultra-luxury home development. Buyers are seeking amenities for children because their work has become so consuming, that they need healthy distractions for their children. Rooms, where they can stay near their parents but also be occupied in a healthy way, are in high demand. Multi-functional spaces are the foundation of upscale apartments and homes. The flexibility in multi-functionals spaces keeps buyers on their toes and eager to purchase. They can envision family gatherings with ease and entertain guests with no problems.