What Is the Luxury Real Estate Market?

by Mike on April 12, 2017

What Is the Luxury Real Estate Market?

When we talk about businesses and products, we usually think about targeting the widest audience we can. For real estate, that’s just traditional housing. Be it apartments, houses or even villas, we want to target the budget-minded individual that wants affordable housing in order to start a family or move to a location with more promising business prospects. This is how businesses such as Walmart and Amazon have become such juggernauts in their respective industries because they know how to target a wide audience with their products and services.

However, as with almost every other industry in the world, there will always be a need for luxury. Sure you can buy clothes at discount price in bulk for your daily needs, but you can also buy designer clothes for a hundred times the price. Is it worth the cost? If we’re speaking about value then probably not, but do people still buy it? Oh yes.

Whether it’s to show off their wealth or live in a comfortable environment that sometimes does offer a better lifestyle, luxury real estate is here to stay and will always find a niche. As seen on http://www.lonny.com/Celebrity+Homes/articles, celebrities are some of the most common buyers for luxury properties and their combined wealth makes it a lucrative market. But what exactly does luxury real estate encompass, and can it have a positive effect on your own real estate career? Let’s find out.

Location Is Important

When we speak about luxury real estate, what we sometimes mean is the prestige of the location. For instance, Beverly Hills is a well-known city in California due to it being the home to many Hollywood stars. This makes it a prime location for spotting celebrities going about their daily business, and if you manage to score a house in Beverly Hills, you’re quite literally living among the stars. This isn’t for everyone, of course. Only a small population of the world cares enough about fame and fortune to want to live close to celebrities, but don’t forget that celebrities also have to contact real estate agents, and if you specialise in luxury property, then that could be you in the future.

Location may be important, but it’s also important to remember that Beverly Hills isn’t the only luxury city. Other locations, such as the ones shown at http://www.skyfiveproperties.com/homes/Key-Biscayne are also luxury properties due to their locations. Some are close to lagoons or oceans, and some have incredible views that make it worth their high price tag. IN short, location is one defining factor in the luxury real estate market, and some locations are more expensive due to their views, surroundings, or the people that live in the area.

International Investments

Of course, luxury real estate isn’t just about your country or state. Luxury real estate can extend not only to other countries but even islands! Yes, there are even real estate agents that focus on luxury island experiences. You could own your own personal island with electricity, phone access and even an internet connection. You’ll have an entire island to yourself to do whatever you want, be it fishing, exploring, renovating—it’s all up to you!
As you can imagine, luxury real estate is an incredibly specialised market due to the weird and wonderful properties that you can sell. It also requires a lot of international knowledge if you want to buy and sell luxury properties in a place such as Dubai, an island, or even Hong Kong. Rich individuals are always looking for something unique, and because it’s so hard to put a value on something which is so different, it can be quite hard to judge a price. As a result, rich people looking for a luxurious property are often willing to pay exorbitant prices just to stand out or have a home which is unique in every way, making it a very lucrative market to invest in.

Remodelling Is a Huge Part of Luxury Real Estate

They say you can never polish a turd, but in terms of real estate, you can fit plenty of luxury appliances and expensive decor into a house just to make it luxury. Although it’s an extreme example, there’s no denying that the luxury real estate market is heavily based on refurbishing. The plot and the structure itself are secondary to the location and the insides of a house.

If you really want to get your foot into the real estate market, then you’ll have to learn all about designer furniture brands, the latest smart home technology, and be able to furnish your projects with an incredible sense of style and detail in order to make it worth the price. When rich individuals are buying luxury properties, they rarely by an unfurnished home unless they have a specific plan for it. Instead, they buy the house and all the furniture that comes with it, which is why they can be incredibly expensive.

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