The world’s most affluent citizens continue to show confidence in the real estate market, with one-quarter planning to make a real estate purchase within the next three years, according to a recently released report by Luxury Portfolio International®, the luxury face of Leading Real Estate Companies of the World®, and produced by YouGov.
“The world’s wealthy community continues to grow, as does the demand for luxury real estate,” says Paul Boomsma, president of Luxury Portfolio International. “Our research shows that for these buyers, independent real estate companies provide the service and individual care they require.”
The report focuses on the global top 1 percent—those with at least $3 million in assets. Among wealthy Americans, 25 percent plan to make a real estate purchase within the next three years and 18 percent are planning to sell real estate.
For affluent real estate purchasers, location remains a driving force, with 61 percent saying that privacy is essential, according to the report. The wealthy expect comfort and relaxation, as 60 percent cited a master bedroom with a luxury en suite bathroom as a priority, and 54 percent indicated a preference for dual walk-in closets.
In their quest for distinction, the world’s affluent are drawn toward independent providers. The study, which compared the use of independent providers in three major categories: hotels, financial services, and real estate companies, found that 58 percent of the wealthy use independents versus 42 percent who only use major brands. At the highest level, 63 percent of the ultra-wealthy (over $30 million in assets) would be drawn toward using an independent real estate provider.
Despite some economic uncertainty and political unknowns, those with the highest net worth feel good about their lives, are confident about their decisions and have a strong intent to purchase real estate, the report concludes.
To download the full report, visit www.luxuryportfolio.com.