Have you ever really wondered what makes a luxury home so luxurious? The answer to this query is, well…Not so simple.
General Factors in Determining Luxury:
- Location, Location, Location!
The concept and label of luxury real estate varies from country to country, region to region, community to community and what buyers want in these specific areas. In most part, prime markets (global economic hubs) will have the highest amount of luxury homes, and demand the highest amount of dollars.
- Buyer Pool
High-Net-Worth-Individuals (HNWIs) are the only key indicator of who exactly is looking for luxury, however, if you live in rural Manitoba vs in a large urban centre such as Vancouver, the pool of HNWIs will undoubtedly vary, as will the benchmark determining said individuals…Which will factor into what makes homes in each market luxury.
- Buyer Expectations
The attributes of individual luxury properties around the world will vary based on the location. General luxury home attributes may include; privacy, land size, proximity to water front, views, finishing types, home size square footage, etc. This being said, luxury homes do tend to have a few things in common (generally speaking);
- A high price. In Vancouver and the Fraser Valley, a luxury detached home would start at about $3M (depending exactly what community the home is in). According to a recent whitepaper titled; “Luxury Defined” by Christies Luxury Real Estate, In general the price range for luxury real estate starts at around $750,000 to $1M, with only 4% of luxury real estate (world wide) being at this price point, alternately, $30M+ captures 18% of the same luxury real estate market world wide and 15% being between $20M to $30M.
- Marble finishes, Miele appliances, distinct architecture, building materials, efficiency, land size, and landscaping; just some attributes that determine whether a property may
- In the luxury home market privacy is a premium. Large yards, privacy walls, tall hedge rows, gated and secured entrances are all
aspects that add luxury to a listing.
- In home amenities. Things like cigar rooms, entertainment rooms, indoor pools, tennis courts, multi-car garages, arcade rooms – you get the picture. A luxury home is likely to have exceptional at home amenities to appeal to HNWIs.
At the end of the day, luxury real estate is personal and can mean many things, what makes a home luxury to you?