2023-06-30
Luxury Real estate: moving to a new era?
Real estate is a reflection of society.
The behaviour of luxury buyers is influenced by the environment in which they live, their values, their expectations and their constraints. Prestige real estate is no exception to the rule: the population is becoming increasingly feminised, and greater account is being taken of ecological and social considerations, as well as technological opportunities.
Estate agents need to respond to these expectations and adapt their approach.
To do this, they need to have a clear vision of how the market is evolving. We discussed the state of the art in a previous article. The aim here is to provide a quick snapshot of the new generation of luxury property customers, without focusing in particular on the Monaco - Monte Carlo sector.
Changing demographics
The luxury property market is seeing the arrival of a new generation of owners and investors, many of whom are under the age of 35.
As a result, we are witnessing a feminisation of the customer base, with more and more purchases being made by women: 54% of luxury property owners under the age of 35 are women.
A second interesting point is that these new clients are clearly more focused on their personal success and the security of their financial assets, as shown by the fact that 1/3 of them are single, in stark contrast to the previous, more traditional generation.
This sociological reality is having an impact on the strategies put in place by luxury brands, including those outside the property sector, which are gearing their marketing towards this younger customer segment with different expectations.
A new generation with different demands.
Proximity to other luxury companies and the ability to personalise the experience as much as possible through a genuine approach are among the expectations of these generations, who see real estate as a brand in its own right. So while 91% of homeowners plan to increase their portfolio, younger people are much more attentive to the quality of the human relationship, and therefore to the personality of the estate agent and the agency, the key players in the purchase. For us at Stars, this is a given.
The process of finding a property is also taking on a whole new dimension, with almost 50% of luxury property buyers under the age of 35 using social networks as their main prospecting platform, which is turning traditional agency communication strategies on their head.
Eco-responsible luxury and heritage: the emergence of a new trend.
It's a fact: emerging generations are much more sensitive to environmental considerations and the attractions of technology.
As a result, these elements of sustainability and coherent, well-considered investment are taking on a new importance when it comes to making choices.
Similarly, technological relevance, for example through the effective integration of smart home systems (such as HomeKit, Thread or Matter) is of great importance to 51% of buyers under 35.
This attention goes hand in hand with a growing desire to have personalised services, capable of making life easier, associated with the purchase.
Worth knowing:
- Sectors such as finance and technology, by virtue of their attractiveness and high levels of remuneration, are encouraging young people to build up their fortunes.
- Inheritance and/or family support is an essential asset when it comes to acquiring luxury property.
- New generations of buyers see property as a long-term investment, with a long-term investment horizon.
- Historically low interest rates are making investment more affordable, making it easier to buy luxury property.
- Younger generations are increasingly well-versed in financial education and literature, which means they are better able to anticipate the subtleties of property transactions, helping them to secure their investments.
This sociology of luxury real estate, based on a survey conducted by LPI of 1,419 wealthy individuals in 24 different countries, presents some new aspects that deserve to be explored in greater depth.
It paints a picture that can also be found in the Principality, which reflects the global luxury property market fairly well.
We'll be looking at this in future articles on our blog.
In the meantime, take a look at our portfolio for sales and for rent.
