THE HIGH-END OF THE GLOBAL REAL ESTATE MARKET IS DRIVEN BY SAVVY, AFFLUENT CONSUMERS WHO HAVE LEARNED TO THRIVE IN TODAY’S NEW, POST-RECESSION REALITY. WHEN IT COMES TO YOUR PURCHASES, WHAT MATTERS MOST TO YOU? The world of luxury has changed dramatically in the past few years and is no longer driven strictly by a logo or recognizable brand. True luxury has become deeper and more complex and the bar has been raised for brands to tell a compelling story that has deep resonance. Our most recent White Paper, entitled The Affluent Homebuyer: A Quest for Meaning, authored in partnership with the research firm YouGov, reveals that while today wealthy consumers have more to spend, they also have access to more information than previous generations. This wealth of information has led to intense scrutiny of the details that separate elite brands from one another. At the same time, demand for the supreme integration of technology and user experience, has created opportunity and opened the door for an emergence of disruptive brands to meet consumer needs with distinct offerings such as luxury homes by-the-night via Airbnb or Black Cars on-demand via Uber. The emergence of private label brands, ranging from the indulgent Neiman Marcus cashmere collection, to the commonplace Whole Foods 365 brand are changing the way people evaluate how, where, and when to spend. For the modern affluent homebuyer who is seeking a million-dollar property, quality is a given. THE AFFLUENT HOMEBUYER: A QUEST FOR MEANING IDENTIFIES THREE DISTINCT TIERS OF LUXURY BUYERS: 1 PRACTICAL EXPLORERS The first tier, Practical Explorers, buyers in the $1–$2 million range, seek trusted experiences and 80% prefer to work with a real estate agent on their transactions. These buyers choose lifestyle over luxury and want to feel like they are making a smart decision. They have earned significant wealth, and have a relatively long experience with affluence, making them both diligent and loyal. Their lives and passions focus on family-friendly activities, volunteering, and promoting their personal wellbeing. 2 MEANING SEEKERS The Meaning Seekers, buyers in the $2–$5 million range, are luxury lovers and 71% of this group proudly assert that once you experience true luxury, it’s hard to scale back. However, there is more to these purchasers, they are also seeking emotional connection in their purchases. They prize artistically beautiful things and their purchases also reflect their personal style and sensibility. When it comes to investments, they lead with their values: 74% state that sustainable living is a core value and 73% say that a company’s sustainability efforts impact their investing decisions. 3 POWER PLAYERS The Power Players, those in the $5 million and above range, have reached a pinnacle of accomplishment. They acquire the finest, most premier properties and are willing to pay to get them. In this echelon, 83% of those surveyed say that they choose the best and expect the price to reflect this. They are motivated by a desire to have it all and want to feel confident that what they have purchased is unrivaled excellence. While 95% of them say they have all they need to be happy, they still have a healthy sense of competition with their peers when it comes to acquisition. They are focused on being happy, fulfilled, giving back and adding quality in everything they do. Excerpted from The Affluent Homebuyer: A Quest for Meaning which can be downloaded in its entirety from luxuryportfolio.com/whitepaper.
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