Luxury Portfolio International® (LPI), the luxury marketing division of Leading Real Estate Companies of the World®, has released a new, global report: The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets.
This detailed research focuses on affluent consumers (the top 10 percent and above income earners in 26 countries) who are in the market to buy or sell a second or vacation home in the next three years.
The Allure of the Second Home reveals that the potential for luxury property has never been bigger. Just in the last four years, personal wealth globally has grown by 15 percent and the number of high-net-worth-individuals has increased by 25 percent. For those at the highest end of the wealth spectrum (over $10 million in assets), this represents a unique opportunity. While the mainstream market has concern and is showing caution, this consumer, and particularly those in the market to buy a second home, is becoming more aggressive and feeling a high degree of confidence in the market.
Photo by Jessica Bryant.
“Today’s affluent second home buyers have more assets than in the past, they are younger, with nearly half under 40 years, and they are experienced with home ownership,” said Stephanie Anton, president of Luxury Portfolio International®. “This group is looking for additional residences for their portfolio that cater to their discerning lifestyles, where amenities and wellness are priorities.”
Photo by Expect Best.
Beyond physical and emotional wellness, which most affluent consumers focus on, luxury second home buyers are especially keen to improve their intellectual, social and even spiritual wellness, with 96 percent taking at least one aspect of wellness seriously. Learn more about how luxury developers are keeping this in mind to differentiate themselves in the full report.
Key Takeaways
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The high-end second home market is a net growing market
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Younger buyers make up half of the luxury second home market right now
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Ultra-high-net-worth individuals are investing more aggressively
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Buyers are ultimately seeking a life well-lived