Photo by allPhoto Bangkok on Unsplash
Opinions expressed by Digital Journal contributors are their own.
The question of what the wealthy really want from their properties is on the rise. In an age of opulence and abundance, finding new living concepts that beat out the old ones is becoming progressively more challenging. Everything feels like it’s been done already.
But there are still architects and designers looking to push the frontier. The demand for incredible properties from wealthy individuals isn’t going away, and anyone who can come up with something new is likely to win in the marketplace.
“Luxury property interests us immensely,” says online brokerage Mortgage Quote. “It’s one of the most fascinating parts of the market because budget constraints aren’t so much of an issue. You get to see what people do if money isn’t an object of concern.”
The question, of course, is what the wealthy really want from their properties. Space is one obvious feature they’re looking for, but it’s not the only one. They want to bring all sorts of other elements into the fold.
Location
Top of the list of priorities is location. Wealthy individuals are looking for properties in up-and-coming places, and areas where they can network more effectively. Being out on a limb makes it more challenging to go to social events and occasions.
“The focus on location is one of the reasons why the luxury property market is so interesting,” Mortgage Quote explains. “Where’s desirable is always shifting, and therefore, so is the money. In the past, it was places like New York and California. But now you can feel the center of gravity moving towards Florida and Texas, two superstar states outperforming the rest of the country. The wealthy want pads in these locations because of the promises of high returns and outsized gains going forward.”
Interestingly, the target isn’t sprawling estates, particularly in cities themselves. When the wealthy move into town, they often want a central location close to amenities, shopping malls, and beaches. Being in suburbia isn’t ideal for those wanting to avoid commutes and pollution.
Security and privacy
The wealthy are also seeking properties offering security and privacy. Many want to live in condos with multiple layers of defense against intruders, including concierge desks, cameras, and keycard access to suites.
“The need for security is growing among the ultra-wealthy as society becomes more divided. Offering high levels of protection in city areas gives residents confidence they’re safe and they can live care-free,” Mortgage Quote says. “A lot of architects are now incorporating security measures into their designs, making it more challenging for people to infiltrate buildings and put residents at risk.”
Many new developments have expansive grounds for monitoring the perimeter and guards watching the CCTV throughout the day. Some also have lockdown systems that prevent intruders from gaining access to new parts of the building once detected. Even access points like the parking lot and garden are subject to keycard requirements.
Of course, this level of security and privacy is nothing new, but it is being implemented more conspicuously. Residents want to see the available protection so that they feel comfortable. In many cases, it is just as important as luxury fittings and finishes.
Turn-key functionality
Turn-key functionality is another thing high on wealthy residents’ wish lists. People don’t want to have to do hours of DIY once they move into their homes. Instead, they want to enjoy the time they have free. Fixing door knobs and painting walls isn’t their idea of fun. Renovation is not a desirable option.
But what does turn-key functionality mean? Essentially, it means that everything works and doesn’t require improvement. Amenities should be on-site and ready to use at a moment’s notice. Residents shouldn’t have to inconvenience themselves to go for exercise or operate the air conditioning unit.
“You can see this sort of thing in developments like Elle Residences,” Mortgage Quote explains. “Nothing has been left to chance. Residents can move in from day one and just expect everything to work and for convenience to be close by. These new developments are like cities within cities, providing immediate access to most things people need week-to-week. They don’t have to go far.”
Investment-grade options
There’s also a demand for investment-grade options. The wealthy are always seeking accommodation that will rise in value in the future and provide them with an income or capital appreciation in the future.
You can see this investment-grade appeal in the types of luxury properties being built. Investors aren’t interested in accommodation that has too many quirks or idiosyncrasies. They want options that will rise in value and then be easy to sell once they put them on the market. That’s the goal.
For this reason, the number of high-rise units is rising. Towering structures that overlook cities can provide vantage points that people can enjoy, no matter what their interior tastes. Views never go out of fashion.
High-quality and neutral fittings are also being seen more often. These don’t offend anyone and usually create a good impression, often in other investors looking to buy properties and rent them out to tenants.
Investment potential also means that the properties must have the ability to go up in value. If they can’t, then the value is likely to be low, even with rental income.
Accommodating of lifestyle
Finally, many wealthy individuals are looking for luxury accommodation that fits their lifestyle. Simply being luxurious isn’t always sufficient.
For example, busy families might want their condo or apartment complex close to nearby high-quality schools. Trips across town in the car are not desirable.
Many are also looking for property close to airports. Being able to leave a town and fly to a foreign destination on a whim is a top priority for many.
“It’s clear that the market for luxury properties isn’t going anywhere,” Mortgage Quote says. “It’s just that people’s priorities are changing. It’s no longer as much about having luxurious interiors but more about what the property can do to serve its occupants. These additional factors are what’s driving many of the buy and sell decisions in the marketplace.”