Recently, Scorpio Partnership coined a new term — millennipreneurs — for a group who is making a significant impact on the luxury real estate market.
Scorpio Partnership led the 2016 BNP Paribas Global Entrepreneur Report — a study of 2,600 entrepreneurs in 18 countries including regions in Asia, Europe and the U.S.
Who are millennipreneurs?
Milllennipreneurs are described as those in the millennial generation (born 1980 to 1995) who are active entrepreneurs.
What impact do millennipreneurs make in the upscale market?
Of course, several groups fuel the high-end real estate market, including foreign buyers. Yet local wealthy millennial purchasers also have a tremendous influence on the luxury real estate sector.
Indeed, several “comeback” markets have been affected positively by interest from rich millennial entrepreneurs. Those in the low-to-middle tiers of wealth have made a considerable difference.
During the past 12 months, their investment portfolios rose by 12 percent. This entrepreneurial group maintain a diverse profile; 20 percent of investment directs to their own business and they allot 17 percent for real estate as well.
These two categories represent their preferred holdings though they dabble in diversity. Millennipreneurs in France and the United Kingdom have the most interest in residential property; they hold 21 percent in real estate.
Where do millennipreneurs buy luxury homes?
Often, millennipreneurs will choose to purchase high-end property in urban locations. But many young entrepreneurs will commute from a luxury residence outside the city.
Therefore, they boost the local non-urban profile. High prices and limited inventory can influence a millennial’s decision to buy elsewhere than in a major center.
Chasing a certain lifestyle, though, is a significant factor in the mind of the young wealthy buyer. This recent purchasing phenomenon is not just limited to areas in close proximity to a metropolis.
According to the Luxury Defined 2016 Report by Christie’s International Real Estate, even coastal and mountain areas can be of interest to millennipreneurs.
Do millennipreneurs make a mark on global luxury real estate?
This is not only a U.S. trend but rather the entire globe is seeing this movement. Today’s HNWI look for prime residences in locations that were once sought after only for secondary homes.
Of course, this group’s No. 1 choice can also be a traditional resort market with world-class amenities.
Due to modern technology and progressive communication, a millennipreneur can settle almost anywhere, enjoy a luxurious lifestyle and still maintain the necessary worldwide connections for a successful global enterprise.
Therefore, diverse regions that were not previously home to millennipreneurs are now welcoming them as new residents.
Does the millennipreneur differ from the traditional entrepreneur?
As well as locations, other factors have changed in today’s luxury real estate market. People take a unique approach to modern business.
In addition, the contemporary high-net worth population has a different look than the previously-held perception of wealthy buyers.
The contemporary demographic of the luxury purchaser includes others besides those with inherited wealth or individuals who have become global leaders.
Today’s high-end buyer might be a young entrepreneur, technology genius, retail giant, consummate professional or smart new investor. More disposable income broadens the millennipreneur’s horizons and expands the luxury real estate market.
Kevin M. Leonard is the founder of Luxury Agent and Valore Group.You can follow him on Twitter or LinkedIn.
