What is it that luxury clients want?
Luxury Portfolio International’s latest report outlines the “Luxury Dream Home” of today and lays it all out.
The global luxury network conducted its survey of more than 4,600 high-income (the top 5 percent) and high-net-worth individuals (those worth $1 million or more) across more than 20 countries to create its State of Luxury Real Estate report for 2022. From that survey, it derived seven core luxury home trends that the wealthy want today. The company also created renderings of a model home that embodies the trends.
By and large, it seems luxury clients are focused on safety, health and sustainability in the homes they purchase.
“While the luxury residential real estate landscape — and subsequent demand among buyers — had been fluctuating before COVID, the pandemic increased some of the changes we’re experiencing today,” Mickey Alam Khan, LPI’s president, said in a statement. “This is particularly true as it relates to a home’s literal ‘livability,’ such as premium ‘green’ amenities, room to run, self-care features like saunas, steam rooms and yoga studios, and ornate entertainment areas.
“Today’s global market is being shaped by widespread uncertainty, which makes it all the more crucial to stay well ahead of the most impactful trends,” he added. “At Luxury Portfolio International, we have long prided ourselves on not only being able to logically dissect what’s influencing the high-end sector, but how to instruct homebuyers, sellers and agents to adapt accordingly.”
Read on to learn more about the seven main components high-net-worth clients require in a home today.
1. A home that reflects a happy, satisfied life
By creating a home that exudes their own life satisfaction and joy, luxury buyers show that they’ve figured out how to do this thing called life, LPI’s report concludes. It shows they’ve figured out how to achieve work-life balance and a sense of contentment.
How does one reflect that balance and satisfaction through a home? By having a property with a gorgeous view, in a walkable or bikeable neighborhood, has a short commute to their workplace and easy access to nightlife. The home also evokes feelings of “safety,” “comfort,” “control” and “fun,” LPI said.
2. An outdoor space that is an ‘adult playscape’
After years of dealing with COVID, luxury homeowners now prioritize an “outdoor escape” at home, LPI’s report noted, with a fun outdoor area in which to socialize with peace of mind.
High-tech additions like solar panels, smart home tech and Wi-Fi that extend to outdoor spaces are a constant fixture across luxury homes. From buyer to buyer, however, outdoor spaces are unique to the individual’s personality, from large and grassy fields, to gardens or orchards, to fully equipped entertainment areas complete with a pool, outdoor kitchen and some kind of fire feature.
3. Sustainability is a priority
Today’s high-net-worth buyers are also looking toward the future of the planet when considering their next home, making sustainable features one of their top priorities instead of just a nice add-on. Ninety percent of luxury buyers surveyed by LPI said that environmental sustainability factors into their home search criteria. Installing solar panels and energy-efficient appliances into a home is not enough anymore, LPI’s report notes.
In order to fit the criteria of future luxury homebuyers, homes will need to have such features as construction materials that are sustainable (recovered or renewable) and nontoxic, as well as a designated composting area on the property.
4. Wellness and fitness amenities
During these tumultuous times, luxury buyers expect their homes to be a haven for body and mind wellness. As such, 75 percent of these buyers expect their next home to have three or more fitness and wellness amenities, LPI’s survey found.
Luxury homes that include private spaces or tranquility gardens, an indoor pool or spa, massage room or yoga studio, and that let in lots of natural light will appeal to this luxury trend.
5. Elevated security
Security has always been of concern to high-net-worth clients, but the ways in which they approach security today are changing with the times.
As luxury clients become more concerned over potentially increased crime in the wake of COVID-19 shutdowns and rising rates of cybercrime, they’re reacting by implementing more backup systems for utilities, data and internet. Monitored home security systems and smart door locks, CCTV monitoring and on-site security or protected grounds also continue to be essential.
6. Kitchen gadgets
Having a gadget-stocked kitchen for both everyday use and entertaining has become essential for 80 percent of luxury buyers today, according to LPI’s survey.
Smart devices like built-in coffee makers, cookers, blenders and cocktail mixers are all popular gadgets right now. In addition, 87 percent of luxury buyers want entertainment features such as a dedicated wet bar, formal dining area and luxury-brand appliances. Features like a separate catering or butler kitchen and commercial-grade appliances are also desirable.
7. At-home, outsourced services
As e-commerce has increased across the country in recent years, now accounting for about 13 percent of total U.S. retail sales, according to Census Bureau data, luxury buyers have become more and more accustomed to having their services taken care of for them.
In addition to using more app-based services to get food, beverages and other goods, this trend has translated into luxury buyers having more designated spaces in their homes for outsourced everyday chores, like a place for a personal chef to prepare their meals or a break area for hired-on help.