Over the past 50 years, the luxury real estate market has transformed. Luxury properties are no longer just for the ultra-rich or celebrity figures, they’ve instead been redefined and reshaped by the buyer’s market itself. Gone are the days of $10 million dollar penthouses, and in are more affordable luxury properties fit for a broader and more varying audience.
With global economies faltering, buyers no longer have endless amounts of money to shell out for lavish real estate and developers are taking note by creating projects that align more with their target demographics’ lifestyles. This has changed the meaning of luxury all together, shifting from being so “one-size-fits-all” to providing an abundance of differentiation in a previously one-sided market.
Consumers have defined luxury by their own needs, and as a professional it is important to weigh in on these new concerns and opinions as Miami’s real estate market continues to grow.
So how can real estate professionals gauge Miami’s luxury market?
When it comes to amenities think quality over quantity
Consumers would rather invest in a luxury property that caters to their most immediate needs (i.e. a gym and a doorman) rather than shell out extra cash for an abundance of amenities they probably won’t use.
Location is key
Most buyers start their housing search by location. Convenience is important, so tap into areas your audience would be interested in. For Miami, this could mean selling by the coast, by downtown nightlife or a treading new neighborhood like Bay Harbor Islands. More people consider location as the biggest “added amenity,” so ensuring you comply with those needs moving forward on different projects is crucial.
Price is important, even when dealing with luxury buyers
Affordable luxury has flooded the real estate market. More consumers are looking to snag a “better bang for their buck,” by looking at moderately priced luxury real estate that better fits their wants. Rather than spending $2 to $3 million on an apartment designed by a world renowned architect, they rather spend $850,000 on a condo that’s walking distance from the beach and has all the amenities they want and will use.
Be unique
Be sure to differentiate yourself from other competitors. Keep up with current trends to be on the forefront of new styles and technology. No one enjoys a market flooded with sameness, so stand out to your consumers by providing different approaches to traditional real estate styles and amenities.
Here at Verzasca Group, when we start developing buildings, before we even build we take into consideration who we want our buyers to be. It is important to remember that you’re not just trying to sell a building, but trying to sell a lifestyle.
Tim Lobanov is the managing director of the Verzasca Group. He has experience in the international real estate space, specifically identifying emerging market trends across both commercial and residential real estate.
