As the demand for luxury properties increases, we tell you what makes a property a luxury home
By: Saba Ali, Senior Vice President, Global Real Estate Advisor, Sotheby’s North India
Posted on: October 29, 2015
Ultra wealthy individuals are investing in luxury homes around the globe to further diversify their assets as it continues to hold a special place within their portfolio. Owning a second or third house is one of the most common activities for affluent individuals. Globally speaking, 79 per cent own at least two properties and 53 per cent have invested in three or more.
For many individuals, these choices are motivated by familiar considerations: lifestyle fit (owning a property in a particular location), as well as short-term and long-term investment potential. While they may purchase real estate for a variety of reasons – spanning from practical to passion to investment purposes– it represents one of the most intimate asset classes characterizing their wealth.
However, it has been recently observed that for some HNIs, reasons for buying a property goes beyond these long-established motivations, or re-interpret common motivations in a new way. For these buyers, properties are more like ‘opportunity gateways’ and buying decisions are made based on the options that would be available after making an investment.
The definition of luxury varies from customer to customer. However, for any property to qualify as a ‘luxurious proposition’, there are a certain defined elements that makesthem a home worth millions.
Location is the key
Excellent infrastructure, easy access to nearby locations, neighborhood status and other such factors play an important role when debating about a home’s ‘luxury value’. For example, villas on golf courses are the all-time favourite development, and golf communities remain a strong trend till date.
With increased focus on environment, homes that have low carbon footprint and curtails the use of traditional construction materials, always attracts the moneyed buyer. Having high awareness on the subject, buyers today prefers to use solar energy based equipments, wood flooring, recycled material while constructing, and then further complementing it with beautiful landscaping, water conservation features, etc. Not only does it look beautiful, but blends the property with nature in a stunning way.
Be it built-in features that would turn–on the air-conditioners just before you enter your home, controlling your alarm system with a click of your phone, security features such as pre-programmed access cards and high-tech features such as super-fast lifts always makes a mark. Technological updates and improvements are highly in demand as new features keep cropping up at a fast speed.
Amenities such as clubhouse and pools are quite a norm now. What sets a luxury home apart, however, is when the pool is located on the top floor with large viewing decks and F&B facilities. Children’s areas, crèches, event areas, and many other such facilities make the home worthwhile!
The décor, too, adds that luxe quotient to any home. The minimalist look, highlighted with extensive use of glass continues on exteriors, with floor to ceiling windows offering maximum panoramic views. Statement Starck-esque chandeliers, sleek neutral accessories giving a zen ambience, and more are on the platter.
The future of luxury residential real estate looks highly promising and positive. With its tendency to gain in value faster than traditional real estate and its greater appeal to UHNW individuals with inherited wealth as well as its reputation as a safe asset, luxury residential real estate is set to see more and more growth in demand.
Saba Ali has over two decades of experience in business development, partnership building, media & Government relations, with a special focus on Indo European business and institutional relations. Since 2008, she has represented Fondazione Altagamma, the luxury foundation of Italy with over 80 Italian companies as members. As Altagamma’s Sr India Associate, she has been the key advisor in the fast evolving Indian market for luxury lifestyle products and services, with deep insight and experience of engaging with Indian businesses, institutional, government, cultural & media communities. She has an in-depth understanding of engaging with the growing high end Indian clientele. She has also advised the Commonwealth Business Council, the office of the Mayor of London & its multiple agencies and marquee lifestyle companies, including The Berkeley, Tecnomar Luxury Yachts, Miramax Films and Natuzzi S.P.A. She co-founded Mirabilis, in 2006, a branding and marketing advisory with a focus on urbanization, mobility, FDI and related issues. Since its inception in 2012, Saba has been on the board of India Design Forum (IDF) as Senior Advisor. IDF has emerged as the most significant platform addressing the dialogue on Design in India.
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