Who are the most active buyers in the luxury property market?
Millenniums become a driving force in the luxury home market
After years of media reporting about how millennials* postponed the purchase of their own home, young buyers began to become a driving force in the luxury home market. However, they face a number of challenges such as shortages of quality property in some markets and the competition of older wealthy buyers, the so-called baby boomers, who leave the suburbs in search of urban properties. In their analysis by Christie's Real Estate, they gather opinions from brokers around the world on what the two most influential buyers are looking for and how their preferences shape the luxury property market. Check out the main trends:
Millennials and baby boomers - in competition for demanding luxury properties in the city
Baby boomers change their lifestyle and property accordingly. They continue to be a major driving force in the luxury property market. The trend for older buyers is to sell large properties and invest in a few smaller locations. Baby boomers do not want to live the same way as their parents when they retire. Keeping an active lifestyle, they prefer homes with easy access to places for culture and entertainment. However, the lack of sufficiently good properties on the market reduces their incentive to move to a less compact home. This, in turn, limits the choice of properties for young buyers who are yet to create families and look for more spacious homes. Thus, the two main groups of buyers on the market find themselves in direct competition when looking for a luxury home.
Baby boomers want to be close to, but not at the epicenter of events. Most buyers in this group move from suburban to luxury apartments in the city. They prefer homes with extra bedrooms and bathrooms to accommodate guests as well as their growing children. Older buyers are looking for similar areas, as millenniums prefer, but usually just a short distance from the liveliest parts of the city.
A clear preference for buying a property from a parent for a child who is still in school or is just starting to work is to provide services related to the maintenance of the home.
Weak young buyers are looking for a second luxury home
A tendency for wealthy millennia is to look to buy a second home. They are willing to invest in a more expensive property that can afford it on platforms such as Airbnb and VRBO (Vacation Rental by Owner). At the moment, Cann is a hit for a second property. Wealthy young buyers are willing to spend between 5 and 15 million euros for a luxury furnished property in the city center with a view of the sea.
Millenniums put new destinations on the map of luxury properties
More nomadic millennials give a new definition of luxury by rediscovering minor sites so far. Entrepreneurs and artists who can work from anywhere in the world are heading to cities such as Austin, Ashville and Lisbon, as well as regions that have not been preserved until recently such as Brooklyn. In this way, buyers get a luxury home at a more affordable price.
* Millennial - the people born between the 80s and 90s of the last century, currently between the ages of 22 and 37.
* Baby boomers - born after the end of the Second World War, currently between the ages of 54 and 72.