Luxury Real Estate Trends
The personal luxury market is in a constant state of flux. From art to watches to wine to real estate, the luxury market responds to increasing consumer demands for accessibility, personalization and secure service.
Accessibility, that elusive blend of convenience and connectivity that doesn’t undermine exclusivity, is surfacing in the luxury real estate industry in two significant ways.
The first is in the realm of digital technologies, which are already an intrinsic component of daily life for the busy, connected consumer. Customers and clients alike expect the advantages of digital to carry over into the luxury market. McKinsey & Company predicts that by 2025, nearly one fifth of personal luxury sales will happen online, while brands like Burberry are already leveraging innovative digital marketing tactics and offering ease-of-purchase solutions to capture the loyalty of affluent millennials.
With this on-demand landscape in mind, our real estate agents are focused on being digitally present and promptly responsive. Clients may book an appointment with Alex Irish & Associates online, if they wish. They may also text or message us at their convenience and receive a timely reply. Our continually updated website is also a wealth of information about the homes we have listed and sold, our marketing practices, community involvement and so much more.
For the luxury home buyer, accessibility can also mean proximity. Already accustomed to services on demand, many clients are also prioritizing living near city centers, closer to their places of work, where lifestyle amenities such as restaurants, fitness clubs, professional services and shopping are all within easy reach.
Physical security has always been a luxury of sorts, but as more business and personal interactions are completed online, total data security is more important than ever. Data safety is of particular concern for consumers who are risk-adverse and vigilant about how and where their money is invested. Fostering a sense of safety and authenticity is imperative for our real estate agents who already understand the importance of building a rapport and a connection with their clients. While providing both expertise and discretion, we also ensure our clients feel secure in their decisions. To offer peace of mind about data protection, we employ tools and practices to ensure our processes are safe from breaches. We vet our vendors, protect our devices and enforce strong password policies.
In the past, luxury was often associated with objects such as the must-have handbag or flashy sports car. But in recent years, this focus has shifted. The emerging affluent demographic looks to luxury purchases to communicate their identity — who they are, what they care about and how their choices indicate taste, creativity and ethics.
The spotlight on personalization has carried over into how the modern buyer chooses a home. Many affluent millennials are now focused on quality per square foot and how a home suits their lifestyle. This means that the finer details of a home become the deciding factors such as fixtures, amenities and location – all of which can sometimes trump square footage.
It is imperative that we know our clients well enough to tap into their aspirations. What is their vision of their dream home? Why choose this property in this neighborhood? We can enhance home showings via the latest technologies including augmented reality apps such as Curate by Sotheby’s International Realty (please see our website blog of May 26th, In The News). These can help clients envision a space with their own tastes at the touch of a button.
While today’s shifting definition of luxury may create challenges for realtors, we are cognizant that the opportunities presented by evolving client demand are numerous. Alex Irish & Associates are proud to employ proactive strategies that establish long-term relationships with our discerning clientele.