Luxury Portfolio International®, the luxury face of Leading Real Estate Companies of the World® (LeadingRE), has released its annual Global Luxury Real Estate Report, the network recently announced. The report provides an in-depth analysis of the habits of global luxury consumers, and how their purchases tie directly to how they see themselves in the world.
The report indicates an ongoing seller’s market, with 25 percent of high-net worth individuals interested in purchasing luxury real estate, but only 17 percent planning to sell. The Asia-Pacific and Middle East regions are expected to see the highest levels of interest in purchasing, and certain high-demand markets worldwide will face continued pressure.
“The population of wealthy consumers continues to grow and their interest in purchasing real estate also increased,” said Paul Boomsma, president of Luxury Portfolio International. “Today’s high-net worth buyer seeks privacy and the latest technology, creating a strong opportunity for new-home developers.”
The report breaks out key differences among consumers, including attitudes toward luxury living, in four different regions: North America, Europe, MENA (Middle East/North Africa) and Asia-Pacific. The feeling that status equates to luxury is strongest in the Middle East and Asia-Pacific regions. In the Middle East, 83 percent of consumers stated that luxury symbolizes status, compared to 36 percent expressing the same belief in Europe—a reflection partially caused by the subdued effect of Brexit in the UK. A unifying factor among luxury consumers in all four regions is personal achievement, which was noted as one of the main values represented by status. In the Middle East, status supports internal validation, while in the Asia-Pacific region, status symbolizes good fortune.
Additional findings from the Global Luxury Real Estate Report include:
- The Asia-Pacific region has seen 21 percent growth in $10 million-plus net worth population since 2015.
- North America contains the largest number of $10 million-plus households and has seen growth of 146 percent since 2010.
- The top reason given by luxuryconsumers for purchasing a new home was to improve their quality of life.
- Eighty-two percent of luxuryconsumers state their privacy has never been more important.
- Sixty-one percent of potential U.S. high-net worth buyers stated that security is what they are looking for in a home purchase.
The Global Luxury Real Estate report includes information from YouGov. The Report was released at LeadingRE’s recent 2017 Global Symposium in Vienna, Austria.
For more information, please visit www.luxuryportfolio.com/whitepaper.
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