While we still see the remaining footprints of the global economic turndown of 2008, some areas of the economy are returning to their normal state. I’m happy to report that the luxury real estate market is one of them. Luxury properties can be considered the top ten to twenty percent of the real estate market in any locale or they can be the top percentage of homes in specific destinations of the world, such as Paris or London. Whatever the definition, people with money are finding them and buying them.
Types of Buying Trends
According to a recent report conducted by Coldwell Banker, ultra-luxury clients are shying away from the large traditional homes favoured by their parents and going for houses with clean designs and an open floor plan. They want well-equipped outdoor kitchens and the ability to bring the outside in with large windows showing off beautiful gardens. The study concludes that the more affluent the homeowner, the more likely to purchase a property based on location and lifestyle.
London’s Home Buying Surge
London is one of the prestigious cities that draws the attention of luxury homebuyers. While the average price of luxury homes in and around Europe has suffered a decline of 0.4% in the first three months of 2013, the value of London’s luxury houses has shown an increase of 8%. In fact, London’s average houses in its city centre have breached the £1m price tag. Demand for central London properties outweighed supply by three to one. Why the big boom in London while European market is stagnant? Investors trying to safeguard their savings during Europe’s debt crisis and instability in the Arab world made London seem a place they could buy and safeguard their money.
Looking at today’s real estate market statistics, they were right.