Homebuyers can choose from a variety of different options when it comes to investing in luxury real estate, whether that’s in the city or the suburbs. But is it better to invest in developing gated communities, luxurious condos, or grandiose houses? It’s important to understand the current trends before committing.
Today, we see a lot of homes being listed as ‘luxury real estate’, but what is it that truly makes a home ‘luxury’? What are people looking for in luxury real estate? Let’s take a closer look to find out.
There are many factors that can influence how luxurious a home really is, and as beauty is in the eye of the beholder, so is the luxuriousness of a home. Since there is no specific checklist, it can be difficult developing luxury real estate.
There are some common features however that can make things a lot easier. A great location is one of them, and while in the past, cities were seen as the best location, the trends are changing. More and more people are turning to the suburbs and investing in luxury real estate there.
Another extremely important feature is interior design. Marble countertops, hardwood floors, and stainless-steel appliances are common features of what is commonly referred to as luxury real-estate. Modern floorplans also feature open concept designs including higher ceilings and larger shared spaces for previously separate spaces like kitchens, living rooms and dining rooms.
All of these features have been relatively consistent when considering the quality of a real estate investment, however, one of the most important features of a luxury home is its customizability.
A buyer has to have many opportunities to transform the home, build a room for recreation, gaming, a movie theater, etc. Primarily, how luxurious a certain home is, depends on individual preferences.
A new generation has entered the market of luxury real estate. Millennials. They’re currently overtaking the workforce and have bigger spending power. This means that luxury real estate development has to have them in mind.
Generally speaking, it’s thought that millennials prefer city dwelling, and that’s not far from the truth. However, what they prefer is convenience first and foremost. Traditional suburbs haven’t offered great convenience, but there’s been a great shift in this trend.
With mixed-use property development, millennials are finding suburbs much more appealing. It still holds true that younger generations would opt for cities, but millennials are starting to change their minds, and here’s why:
While luxury home sales have dropped in the cities, they’ve risen in the suburbs. This is in part due to their affordability. While you’d need a few million dollars to afford a high-end home in the city while around a million would suffice in the suburbs.
Schools in the suburbs are usually higher in quality than in the cities. Millennials are getting married and having children later in life than previous generations, but those looking to invest in luxury real estate are usually over thirty, and their high focus on quality education for their children is driving them to the suburbs.
To impress the younger buyers, luxury real estate developers aren’t focusing on their wants as much as on their needs. What buyers need translates to their greatest amenities.
Millennials have a better work-life balance than previous generations, and they’re searching for luxury homes with amplified amenities. In apartment complexes, that includes fitness centers, sporting facilities, spa treatment spaces, and more. Suburban luxury homes should offer services and lifestyle enrichment programs that appeal to the younger buyers wanting to invest in them.
Focus is a leading developer of luxury urban and suburban homes. Find out more today!