Top agents identify and meet the needs of UHNW clients
Luxury real estate is a significant contributor to ultra-high-net-worth wealth.
Affluent clients buy homes that suit their overall lifestyle.
A leading luxury real estate agent knows the true value of upscale property.
Ultra-high-net-worth individuals (UHNW) own an impressive mass of the world’s luxury real estate.
According to The Global Luxury Residential Real Estate Report 2015, a collaborative effort by Wealth-X and Sotheby’s, 79 percent of the UHNW population have two or more opulent residences including property outside their primary location or even in a different country.
The report notes that over half of this group owns three or more homes as well.
79 PERCENT OF THE UHNW POPULATION HAVE TWO OR MORE OPULENT RESIDENCES.
The additional property makes perfect sense to these affluent consumers. Frequently, they choose their “second home” for business or leisure reasons. They make a practical and financial-savvy decision.
The report states that a UHNW secondary property is likely to be 45 percent more valuable — as well as larger — than the prime residence.
In addition, this same data suggests that 7 percent of UHNW wealth has its source in real estate. The UHNW sector views real estate as a profitable investment and valuable asset as well as a perfect lifestyle match. Therefore, these individuals see a high-end residence as a home and a short-term and long-term investment.
Of course, confidence in the upscale housing market should not surprise anyone. High-end real estate has consistently proven itself because it is a solid investment and valuable factor in long-term wealth.
Luxury real estate is an area in which we often see a client buying one residence, then another (or more) and, eventually, gifting legacy property.
This affluent group serves as the consumer foundation for the world’s luxury residential real estate market. Upscale property can vary in type and style. The UHNW client might purchase a luxurious penthouse or spectacular mansion, but the homes will always have a million or multi-million dollar price tag.
A UHNW SECONDARY PROPERTY IS LIKELY TO BE 45 PERCENT MORE VALUABLE AND LARGER.
UHNW purchasers have a specific motivation. The high-end client’s decision to buy is fueled by three distinct values — emotional value, practical value and business value.
When considering emotional value, ultra-luxury buyers determine the proximity to family and how the location suits their lifestyle.
The practical value revolves around the standard of living and institutional setup.
The business value centers on local industry and a financial base.
The UHNW population, their wealth and the subsequent market are on the rise. Obviously, high-end real estate is in the perfect position; it serves a need and offers an investment.
The successful luxury real estate agent demonstrates expertise in handling the property needs of UHNW clients. If a buyer is looking for real estate based on specific requirements, the expert luxury real estate agent will find property that offers the ultimate value for that individual client.