Luxury real estate, whether in the city or countryside, is becoming more sought-after as buyers search for ways to live their best lives. Typically, these properties boast prime locations, high prices, large sizes, valuable materials, expert design, top-end amenities and a prestigious history.
Luxury homes are typically found among the top 10% of homes based on market value and can range in cost from several million dollars up to more than $100 million. Buyers can find these properties throughout North America, Canada and beyond.
Los Angeles, New York City and Las Vegas are among the most sought-after locations for luxury real estate. Here, buyers can find exquisite condominiums and homes surrounded by iconic buildings, world-class restaurants and entertainment options.
The demand for luxury properties and amenities is surging worldwide, with some countries even experiencing double-digit growth in this segment. Furthermore, the luxury property market is becoming more competitive than ever before.
According to a report released by Zillow in 2023, the global ready-to-move-in luxury housing market is forecasted to expand. International buyers are predicted to continue purchasing luxury real estate in countries offering privacy, safety, high quality private schools, improved infrastructure (e.g. medical facilities), safer investments and cultural enhancements.
Furthermore, the global luxury real estate market is experiencing a demographic shift. Individuals under 56 (Gen X, Millennials and Gen Z) make up two-thirds of home buyers in most surveyed markets.
Luxury buyers seek properties that provide an unforgettable experience, such as views of the beach or mountaintops, or something specific to a region. Additionally, these buyers seek neighborhoods with all the amenities of an urban area and a strong sense of community.
Zillow reports that the rising demand for luxury homes has contributed to an increase in prices. On average, luxury home prices in the United States rose more than 7% in the first half of 2022.
Another factor driving luxury real estate growth is the increasing number of high-net-worth individuals. These buyers are increasingly searching for homes with exceptional features, such as home theaters, wine cellars and gyms.
Additionally, the trend is toward larger luxury homes that provide enough space to cater to a family’s needs or those of multiple generations. Some of the world’s most impressive estates can contain tens of thousands of square feet.
When selling luxury homes, buyers want a professional who can deliver results. This means finding an agent with an impressive track record and familiarity with the local luxury real estate market.
Alternatively, you could become a luxury real estate specialist and assist clients in the market. To do this, you’ll need to obtain your license and join an established luxury real estate brokerage.
