What do luxury customers want?
Luxury Portfolio International’s latest report sums up today’s “luxury dream home” and says it all.
Global Wellbeing Network surveyed more than 4,600 high-income people (the top 5 percent) and high net worth individuals (those with a net worth of $1 million or more) across more than 20 countries to create a website. Luxury Real Estate Status 2022 Report. From this survey, extract seven key trends for luxury homes that today’s wealthy want. The company has also created designs for a modular home that embodies the trends.
In general, luxury customers seem to focus on safety, health, and sustainability in the homes they buy.
Mickey Alam Khan | Credit: Business Wire
“While the luxury residential property landscape – and subsequent demand among buyers – was fluctuating prior to COVID, the pandemic has amplified some of the changes we are seeing today,” Micky Alam Khan, president of LPI, said in a statement. “This is especially true as it relates to the artisanal ‘life’ of the home, such as the excellent ‘green’ amenities, an operating room, and self-care features such as saunas, steam rooms, yoga studios and ornate recreation areas.
“Today’s global market is shaped by widespread uncertainty, which makes it even more important to stay ahead of the most impactful trends,” he added. “At Luxury Portfolio International, we have always prided ourselves on not only being able to rationally analyze what influences the high-end sector, but also how to guide home buyers, sellers and agents to adapt accordingly.”
Read on to learn more about the seven key ingredients that high net worth clients need at home today.
1. A home that reflects a happy, satisfied life
The LPI report concluded that by creating a home that exudes their life satisfaction and happiness, buyers of luxury goods are showing that they have figured out how to do this thing called life. It shows that they’ve figured out how to strike a work-life balance and feel fulfilled.
How does one reflect this balance and contentment through the home? By owning a property with a great view, in a walking or cycling neighborhood, it offers a short commute to the workplace and easy access to the nightlife. The LPI said the home also evokes feelings of “safety,” “comfort,” “in control,” and “fun.”
2. An outdoor space that is an “adult gaming scene”
After years of dealing with COVID, luxury homeowners are now prioritizing an “outdoor escape” at home, LPI reports, with a fun outdoor area to socialize with peace of mind.
High-tech additions such as solar panels, smart home technology, and Wi-Fi that extend into outdoor spaces are constant elements throughout luxury homes. From buyer to buyer, however, outdoor spaces are unique to one’s personality, from large and grassy fields, to gardens or orchards, to fully equipped recreation areas with a pool, outdoor kitchen and some kind of fire feature.
An outdoor ‘adult scene’ at LPI’s Luxury Dream Home | credit: LPI
3. Sustainability is a priority
Today’s high net worth buyers are also looking to the future of the planet when considering their next home, making sustainable features one of their top priorities rather than just a nice addition. Ninety percent of luxury-goods buyers surveyed by LPI said environmental sustainability factors were included in their home search criteria. The LPI report notes that installing solar panels and energy-efficient appliances in the home is no longer enough.
In order to meet the standards of future luxury homebuyers, homes will need features such as sustainable (reclaimed or renewable) and non-toxic building materials, as well as a dedicated composting area on the property.
4. Wellness and fitness facilities
During these turbulent times, buyers of luxury goods expect their homes to be a haven for a healthy body and mind. As such, 75 percent of these buyers expect their next home to contain three or more fitness and wellness facilities, according to an LPI survey.
Luxurious homes that include private spaces or quiet gardens, an indoor pool or spa, a massage room or yoga studio, and that let in plenty of natural light will appeal to this luxury trend.
Spa-like bathroom helps promote wellness at LPI’s Luxury Dream Home | credit: LPI
5. High security
Security has always been a concern for high net worth clients, but the ways in which they approach security today is changing over time.
As luxury customers become more concerned about potential increased crime in the wake of the COVID-19 shutdown and rising cybercrime rates, they are reacting by implementing more utility, data and internet backup systems. Monitored home security systems, smart door locks, CCTV monitoring, and on-site or protected ground security are also still essential.
6. Kitchen Tools
Owning a kitchen equipped with appliances for everyday use and entertaining is becoming a must for 80 percent of luxury-goods buyers today, according to an LPI survey.
Smart appliances such as built-in coffee makers, cookers, blenders, and cocktail mixers are all popular gadgets today. In addition, 87 percent of luxury-goods buyers want entertainment features such as a dedicated wet bar, formal dining area, and luxury brand appliances. Features such as a separate catering kitchen or butler and commercial grade appliances are also desirable.
7. In-house outsourcing services
As e-commerce has increased across the country in recent years, which now accounts for about 13 percent of total US retail sales, according to Census Bureau data, luxury-goods buyers are becoming more and more accustomed to patronizing their services.
In addition to using more app-based services to get food, drinks, and other goods, this trend has translated into luxury-goods buyers having more designated spaces in their homes for daily outsourced chores, such as a place for a personal chef to prepare their meals or Rest area for rental assistance.
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