The global luxury real estate sector is just coming out of a year of growth in 2015 with more wealthy prospects in sight during the coming months. An ever-increasing group among the affluent are extremely optimistic about their future.
Global luxury
With their top income and asset levels, the global affluent can have a definite impact on consumerism in every sector including luxury real estate. The YouGov Affluent Perspective Global Study examines the lifestyle, as well as the saving and spending habits, of the top 10 percent of the world’s consumers.
At least half of the 5,000 people surveyed were at the upper end of the economy in several countries including the United Kingdom, France, Germany, China, Japan, South Korea, Singapore, the United Arab Emirates, Mexico, Canada and Australia.
The luxury market is dividing quickly between the baby boomer generation and millennials. Based on its 2016 report, YouGov forecasts that spending among millennials will increase by 8 percent. The 400,000 wealthiest households in the U.S. are expected to spend an extra 10 percent.
A wealthy world
According to the latest Global Wealth Study by Credit Suisse, affluence is expected to grow at an annual rate of 6.6 percent as we approach the next decade. Global wealth should reach $345 trillion (a 38 percent increase over present levels) in 2020. The U.S. will lead the way with one-third of that total.
The other main players will be in emerging economies. Their share could increase 2 percent (from 17 percent to 19 percent). Most likely, both China and India could show annual growth rates over 9 percent in the next five years.
This tremendous world affluence also includes an impressive “newly affluent” category. Current wealth is distributed throughout the globe. Savvy luxury agents who make smart global connections can discover a gold mine of opportunity and financial and professional success.
Agents who can offer progressive ideas, employ an innovative approach, show confidence in one’s instincts and abilities, put forward a determined effort and demonstrate a commitment to professional excellence should make their mark in this affluent market.
Agents must keep in mind that their high-end client is most likely at the top of his or her professional game and, therefore, expects no less from an upscale agent. In the end, the real proof of expertise is getting the job done in the most efficient manner to meet a client’s needs.
Luxury real estate
Accumulated wealth and asset appreciation is always good news for the luxury real estate sector as well as for companies selling upscale goods — and a luxurious lifestyle.
Increased wealth leads to more spending. Industry predictions for 2016 from the Luxury Society and their Knowledge Partners and other experts suggest that there will be a growing preference for luxurious purchases, which are seen as an investment.
Such action will lead to a positive economic outcome for this year’s luxury real estate market and future developments. A lofty percent of the affluent consumer’s wealth is bound to go toward the purchase of high-end property. Successful families want super homes.
A world of luxury creates a healthy and wealthy global economy as well as the luxurious benefits of success. The new and established elite around the world share an understanding of luxury. To achieve success in the upscale global real estate market, a luxury agent must also acquire that wealth of knowledge.
Kevin M. Leonard is the founder of Luxury Agent and Valore Group. You can follow him on Twitter or LinkedIn.