- The success of luxury real estate lies in some basic truths.
- There is a luxury property to suit every high-end buyer.
- The ultra-luxury sector is the ultimate in high-end real estate.
New mortgages, foreign buyers, historical growth, and the post-election period are all indicators of a dynamic year ahead for real estate’s high-end sector.
Ultimately, these factors highlight that buyers, both domestic and global, are out there for this market. Anyone can buy property anywhere in the world today.
A strong dollar bodes well for affluent American investors, as well as for currencies pegged to the dollar, and for those who have income streams or assets in U.S. dollars.
Of course, equity markets and other assets outside real estate attract the high-end consumer. But an ever-increasing number of U.S. and foreign investors recognize the long-term opportunities of owning luxury property.
Buyer profiles across markets
Latino buyers continue to make up the largest segment of international purchasers in Miami-Dade County.
Domestic and foreign buyers alike are interested in upscale real estate across the nation. Their desired locations can depend on personal preferences and other factors.
For example, the Los Angeles market attracts buyers with its stable economy, affordable prices, lower property taxes — and sunny Southern California lifestyle.
The global hub of New York City is moving forward after change abroad with Brexit and change at home with the presidential election.
Miami’s luxury real estate agents are busy selling beachfront and non-beachfront properties, and developers are interested in supplying the latest local demand for architectural mansions on dry lots.
The upscale real estate sector in Miami and other regions of the country (Las Vegas, Arizona, California) are experiencing an increase in activity. Any past challenges have resulted in a current more balanced market.
During 2017, ultra-high-net-worth individuals (UHNWI) will make their mark on high-end real estate. They will be seeking out the “best of the best,” one-of-a-kind properties. Luxury agents must show the affluent buyer how the property caters to their glamorous lifestyle.
They should also advise sellers that luxurious extras can help to make that sale. At this level of real estate, extraordinary amenities can set properties apart from their competition. Agents have to capture the attention of potential buyers with eye-catching listings.
Every year, new billionaires join the ranks of the affluent. They come from foreign lands, or gain sudden wealth, invent the latest tech trend, or have fortune materialize for one reason or another.
Understanding the market
Luxury agents will have plenty of opportunities for success this year. First, of course, they must understand luxury — and today’s savvy, high-end buyers who compare and analyze options with ease and confidence. After all, buyers dictate the real value of luxury property.
It’s guaranteed to be a fast-moving market in 2017. Be prepared to keep up with the action.
Kevin M. Leonard is the founder of Luxury Agent and Valore Group. You can follow him on Twitter or LinkedIn.