From turnkey arrangements to home automation to energy efficiency, luxury home shoppers’ preferences … [+]
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Sprawling houses with tennis courts and indoor pools, among other ostentatious features, once constituted the benchmark for luxury properties. Not any longer.
According to Coldwell Banker Global Luxury Report 2020, released last week, high-net-worth home seekers are now flocking to smaller, more manageable square footage and modern amenities focused on wellness and technology.
Here are the property types and features, as highlighted in the report, that the affluent seek.
Modern and move-in ready homes
According to Coldwell Banker’s survey of 22 luxury real estate agents around the world, wealthy home shoppers prefer modern residences – both in a design sense but also in construction age.
While some may not shy away from gut renovations of older or historic properties – think San Francisco’s Victorian houses or New York City’s brownstones – buyers tend to favor new builds with open-concept floor plans that support contemporary interiors.
Nearly 80% of the luxury real estate specialists whom Coldwell Banker surveyed said that buyers want flowing layouts with easy, informal transitions. Meanwhile, about 70% of respondents said that new-construction homes have risen in popularity over the past year.
“Buyers are into the finishes and something in the house that gives it a wow factor,” said Anne DuBray of Coldwell Banker Realty in Glenview, Illinois.
But beyond the newness of a residence, wealthy shoppers want turnkey arrangements, which can offer more value in a deal by eliminating the need to move or purchase furniture.
Based in Longboat Key, an upscale enclave near Sarasota, Florida, Roger Pettingell was quoted in Coldwell Banker’s report saying, “[Luxury home shoppers are] willing to pay up for brand new or newly renovated, and they will even give up a view if you have a new home requiring no work.”
Home automation
In Coldwell Banker’s luxury report, home automation ranked as shoppers’ top, most desirable feature. Some 81% of the surveyed agents said their clients seek smart homes.
“If people buy a fully renovated turnkey home, part of that turnkey idea is to have smart-home technology that is voice activated and precisely integrated,” said Miami-based agent Danny Hertzberg.
For luxury home buyers, though, smart technology transcends voice-enabled devices to denote such features as smart security systems, electric car docking stations and energy-producing roofs.
“The evolution of smart home tech has gone from convenience-focused applications to experience-focused integration of all components for daily living and energy efficiency,” Hertzberg said in the report.
Spaces to support a lifestyle
While outdoor living spaces – that foster a seamless indoor/outdoor living – appear to maintain their sustained appeal with luxury home shoppers, other features are on the rise, seemingly elevated by well-off millennials.
For instance, au pair suites are in demand by young, affluent families who rely on live-in nannies to help care for kids. At the same time, flexible spaces that can seamlessly shift their purpose appeal to millennial buyers, who may work from home several days a week or run their own businesses.
“I think we’re seeing more of these multifunctional spaces because people want ease of living,” said Tracy Allen of Coldwell Banker Pacific Properties in Honolulu, Hawaii. “With everyone working on laptops and being so mobile, I’ve found that many of my luxury listings must have a component that is multipurpose and multifunctional. Dining rooms can double as conference rooms; you can have a business meeting in the dining room, then put your laptop away and lunch is served.”
Wellness amenities
While traditional features such as spas and gyms may promote well-being, luxury home shoppers, Coldwell Banker’s report states, want more in the form of amenities that emphasize holistic health as well as environmental stewardship.
Think energy efficiency, air and water flow and lighting quality as wellness considerations that underline the design, function and location of residences. Today, there are different levels of eco-friendly certifications that buildings can obtain (and use as a marketing highlight), an advancement that is a part of the growing global trend of wellness real estate. Living in a “green” development often translates into 10%-20% premiums, the report states.
“Awareness and knowledge of the benefits of living in an eco-friendly environment coupled with an industry ready to support the building of wellness real estate will ensure that this segment continues to grow,” said Paul Scialla, a former Goldman Sachs partner and founder of Delos, a startup focused on the wellness real estate.
Other amenities that luxury buyers seek center on providing services and designated spaces for children and pets.