World Conference Outlined the Trends in the Sector
The luxury real estate consultancy company Unique Estates won the prestigious Spirit award of the world property network Luxury Portfolio International. The award ceremony took place during the annual international conference of Leading Real Estate Companies of the World in March 2017 at the Fontainebleau Miami Beach Hotel in Florida, USA. The event attracted more than 2,000 of the most successful world experts in the real estate field from more than 25 countries, including five top experts of the Bulgarian company.
Unique Estates received the Spirit award for its business expansion and teamwork in developing its portfolio of properties and services thanks to its recent partnership with the largest luxury property network in the world – Luxury Portfolio. The Bulgarian company is the exclusive representative of the international platform in the country and the 60th company in the world to join it.
“The award is a proof that our company develops actively, trains constantly its employees, demonstrates a deep understanding of the sector and proactively uses the new capabilities and international experience in dealing with its customers and partners,” said Vesela Ilieva, Managing Partner of Unique Estates.
On the occasion of the ceremony, the President of the international platform for real estates of highest rank Paul Boomsma said: “The awards of Luxury Portfolio International distinguish companies for their impressive results in the marketing presentation of luxury homes and professional customer service. Each award demonstrates the strategic use of resources and the global influence of Luxury Portfolio International.”
The annual conference of Leading Real Estate Companies of the World outlined the main trends in the market of luxury properties in the world. The sessions were devoted to a wide range of topics that affect the real estate market, including the world economy, changing demographics of users, developing technologies and marketing strategies as well as the contemporary way of life.
The prognoses are positive, as 92% of the attending analysts expect an increase in sales, and 97% - growth in house prices by an average of 7% worldwide. Over 1/3 of the brokers expect an increase in foreign buyers and investors. China still leads the list of countries that will most likely attract buyers on the international real estate market.
When asked what facilities are priorities for the modern buyer, the brokers indicated: open spaces, “smart home” technologies, high-end equipped kitchens and possibility of free passage through the different spaces in the home. The ecological advantages of the properties were also highlighted as a necessity because of increased interest in the use of solar energy and other sustainable principles of life.
Main market trend is the demand for homes that are ready to use and require almost no or minimal repairs. Although these facilities are highly desirable, some brokers report that buyers are willing to compromise because of limited supply in many markets. Worldwide small part of the buyers of properties over USD 1 million would like to renovate completely (15%) or to put their money in an old but fully renovated property (15%). Key benefits for most of them are privacy (55%), energy efficiency and ecological design (55%), master bedroom with a luxurious bathroom (54%) and walking closet (51%), outdoor space or space for leisure (49%) and open-plan rooms in the home (49%).
Profile of the Modern Buyer
According to recent global researchers buyers of luxury properties are divided into three main groups:
- Practical explorers – people who buy homes worth USD 1 – 1.2 million. They are loyal to certain brands because of the quality they expect from them.
- Meaning seekers – buyers of homes worth USD 2 – 5 million. They are used to luxury and are not willing to live without it. They love to express their own style and are looking for sustainability.
- Power players – people who invest over USD 5 million in buying a home. They choose the best and expect to pay a high price for it. Brands they buy reflect their social status. They are the first to invest in the newest and most expensive goods on the market.
During the event, Paul Boomsma, President of Luxury Portfolio International, and Stephanie Pfeffer Anton, Executive Vice President of Luxury Portfolio International, shared the results from the expert analysis of the company regarding the luxury real estate market development. According to them the main characteristics of luxury as a category is that it is devoid of stress. It is a healthy environment for a peaceful, stable and comfortable lifestyle. Basic feature of the market of luxury properties is quality.
At the conference were discussed the five main characteristics of the modern buyer of luxury properties: the desire for excellence, recognition seeking, growing independence, collecting passion and damping influence of brands.
Desire to be Winners
A big part of wealth today comes from hard work and continuous development. It is achieved by overcoming challenges. Only 3% of the people today inherit their fortune. Most of the customers perceive their homes as a mirror of their success and approach the purchase with the question: “How will this house improve my life and contribute to my happiness?”. In many cases the answer to this question is not quite practical. Wishes of people with high financial capabilities nowadays reflect on the growing number of homes with incredible facilities. In fact, 15,000 exclusive properties which Luxury Portfolio presents each year, more than 500 are worth over USD 10 million.
The analysis of Luxury Portfolio, presented by Unique Estates, shows that it is important for customers to feel like winners in negotiations of purchasing a new home. It should be taken in mind that buyers want to feel that they have won what they want. The customers perceive the best deal as a victory even if it is just the idea of a good deal. After all, this process is “a dance” and the work of the best luxury property consultant is to make the customer feels like a winner.
Search for Recognition
Another trend that defines the decisions of the clients with high financial capacity is demand for recognition. Luxury is an adventure for a lifetime and what people with opportunities do is to learn from their experience. The more customers are introduced to the luxury, the sharper it becomes the boundary between “very good” and “excellent”.
This is why the role of the consultant is to present the client the exclusive facilities of each property. Brokers must have comprehensive knowledge and use the experience of any professional in the field of luxury properties – experts from the fields of architecture, home technologies, interior design and more.
Quality has always been determining factor for luxury products. But this quest for the best also applies for services. According to the research of Luxury Portfolio, the wealthiest people of society can distinguish what they are and what else the personalized services can provide. The additional efforts and the special treatment towards the client do not go unnoticed.
The Luxury is More and More Independent
Customers are looking for the best but it depends on customer service, quality and contacts in the field. This increases the search for brands that are developing actively and independently of the general trends. Modern clients rely on deliberate spending oф their hard earned wealth. They want to be part of the luxury, avoiding wastage.
Passion to Collect
Wealthy clients still are willing to collect. The differences today are hiding in their motivation to choose what to collect. The aim in this case is not just to collect a large number of goods, but to have the best and most appropriate objects. Each collection has meaning and value, and reports its artistic and aesthetic side, hand craftsmanship in the manufacture and harmonious relationship between the objects in a large collection. Collecting applies to real estate too. Many families own several homes in different cities, states or countries, in urban or rural areas, in sea and ski resorts. The reason why these customers have so many homes is the desire to have a different experience, whatever is associated with each location.
The Damping Effect of the Brands
With the increasing user requests for non-traditional markets, major brands lose their power to influence the demand purely based on the brand name.
How Does Today's User Influence on the Luxury Property Market?
A big part of the growth in the real estate market comes from people who have recently increased their financial capabilities. Increasing wealth through personal growth is a global phenomenon. For comparison, in 2000 personal wealth around the world was USD 130 trillion, and in 2015 it was USD 250 trillion, an increase of 5% on yearly base. The level of increase over the last 15 years is actually significant. The best option to forecast the development of the market is to track trends in emerging markets. Great attention is paid to people who earn considerably but still cannot be defined as “rich”.
What is the Future of the Luxury Market?
The local experience combined with the acquaintance to the global trends is a winning combination. Technology will develop the world of luxury. The next big trend are “smart” homes. These homes will be related to technology – cooking and cleaning will be automated activities. Equipped with the most modern technology, people will be able to take care of their health and to actively communicate with their family. 26 billion devices will be connected in 2020, which means that every person on the planet will be connected by an average of three devices. The design and aesthetic performance of homes will also meet this technological evolution. Technology will affect the architectural and interior design in the future, the analysis of Luxury Portfolio also shows.
About Unique Estates:
Unique Estates was established in 2006 as a specialized consulting company for sale and rental of properties in two directions – luxury and executive. It works with clients in the luxury and corporate segment and 10 years now is the undisputed market leader in exclusive estate.
The company is part of AG Capital Holding, specialized in construction and real estate investments. In 2016, Unique Estates became the exclusive partner for Bulgaria of the largest international network of luxury properties Luxury Portfolio.
More on Unique Estates can be found at: http://www.ues.bg/
About Luxury Portfolio:
Luxury Portfolio is the largest network of luxury properties in the world, part of the Leading Real Estate Companies of the World. The portfolio of properties represented by the platform of the company includes the largest selection of homes worth over USD 1 million. The company is based in the United States and in 2016 offered the market over 50,000 of the most luxurious properties in the world with a total value of over USD 54 billion to over 3 million creditworthy customers.
More on Luxury Portfolio can be found at: https://www.luxuryportfolio.com/
About Leading Real Estate Companies of the World:
Leading Real Estate Companies of the World is a global property network. Its members are more than 550 companies and 130,000 brokers on six continents with over 1.2 million real estate transactions each year. Each member of the Leading Real Estate Companies of the World enjoyed the experience, international contacts, global marketing and access to the best professionals in the field of real estate globally.
More on Leading Real Estate Companies of the World can be found at: