• Luxury real estate is a significant contributor to ultra-high-net-worth wealth.
  • Affluent clients buy homes that suit their overall lifestyle.
  • A leading luxury real estate agent knows the true value of upscale property.

Ultra-high-net-worth individuals (UHNW) own an impressive mass of the world’s luxury real estate.

According to The Global Luxury Residential Real Estate Report 2015, a collaborative effort by Wealth-X and Sotheby’s, 79 percent of the UHNW population have two or more opulent residences including property outside their primary location or even in a different country.

The report notes that over half of this group owns three or more homes as well.

The additional property makes perfect sense to these affluent consumers. Frequently, they choose their “second home” for business or leisure reasons. They make a practical and financial-savvy decision.

The report states that a UHNW secondary property is likely to be 45 percent more valuable — as well as larger — than the prime residence.

In addition, this same data suggests that 7 percent of UHNW wealth has its source in real estate. The UHNW sector views real estate as a profitable investment and valuable asset as well as a perfect lifestyle match. Therefore, these individuals see a high-end residence as a home and a short-term and long-term investment.

Of course, confidence in the upscale housing market should not surprise anyone. High-end real estate has consistently proven itself because it is a solid investment and valuable factor in long-term wealth.

Luxury real estate is an area in which we often see a client buying one residence, then another (or more) and, eventually, gifting legacy property.

This affluent group serves as the consumer foundation for the world’s luxury residential real estate market. Upscale property can vary in type and style. The UHNW client might purchase a luxurious penthouse or spectacular mansion, but the homes will always have a million or multi-million dollar price tag.

The 3 true values of luxury real estate

UHNW purchasers have a specific motivation. The high-end client’s decision to buy is fueled by three distinct values — emotional value, practical value and business value.

When considering emotional value, ultra-luxury buyers determine the proximity to family and how the location suits their lifestyle.

The practical value revolves around the standard of living and institutional setup.

The business value centers on local industry and a financial base.

The UHNW population, their wealth and the subsequent market are on the rise. Obviously, high-end real estate is in the perfect position; it serves a need and offers an investment.

The successful luxury real estate agent demonstrates expertise in handling the property needs of UHNW clients. If a buyer is looking for real estate based on specific requirements, the expert luxury real estate agent will find property that offers the ultimate value for that individual client.

Luxury real estate — know its true value

Kevin M. Leonard is the founder of Luxury Agent and Valore Group. You can follow him on Twitter or LinkedIn.

Email Kevin Leonard

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×