Report: The Modern Luxury Home: Reimagined
Luxury Portfolio International® has released its latest report, which looks at a number of trends that are currently impacting the affluent consumer’s spending patterns in the face of COVID-19. The purchase of luxury goods, travel and experiential activities, for instance, have been all but curtailed by the pandemic. However, by that same token, high-end real estate has proven to be extremely resilient and more than capable of withstanding the current circumstances.
“Our research indicates that, while the world’s high-net-worth individuals have benefited from growing valuations in financial assets, the coronavirus continues to generate tremendous uncertainty,” said Mickey Alam Khan, President of Luxury Portfolio International®. “To that end, luxury real estate is proving to be an ideal investment, and consumer preparedness to purchase is very high, with many regions experiencing record sales.”
- It's a seller's market: The current ratio of buyers-to-sellers, on average, is three buyers for every two sellers.
- Face-to-face preferred: 61% of affluent buyers and 57% of affluent sellers noted that they prefer face-to-face property tours, The majority of both groups (63% and 64%, respectively) expect the agent to enforce safety protocols while in-person.
- Home renovation on the rise: The demand for spaces that cater to one’s “self” are on the rise, as are home remodels, with 32% of those surveyed noting that they would like to renovate.
- Perceived values of home features and amenities vary by price range:
- In the U.S. $1M to $1.9M range, outdoor areas are in-demand along with a dedicated home office. As work-from-home has become ubiquitous, so, too, has the need for a quiet place to video chat and be productive.
- In the U.S. $2M to $2.9M range, relaxation and an activity room are highest in demand, with luxury homeowners are using wellness practices to combat the stress of success and now life at home nearly 24/7.
- In the U.S. $3M to $5M+ range, monitored home security (more than likely due to the constant ‘at home’ status of most people), and home entertainment spaces are increasingly sought after.
- Real estate is the next big buy: 61% of those surveyed indicated their next big buy will be a home-related investment (either a purchase or remodel).
View the full report at luxuryportfolio.com/whitepaper. LPI members can also download the report in LuxeXchange, where we've made available a special member-version, as well as co-branded options. For additional information, read our press release.