By: Joshua Finley

Christie’s International Real Estate’s 2024 Global Luxury Real Estate Forecast highlights the unexpected resilience of the luxury market despite economic instability. The sector has demonstrated robust stability, supported significantly by the strong performance of equities, enhancing the purchasing power of high-net-worth individuals amidst rising interest rates and geopolitical uncertainties.

In short, more high-net-worth individuals are emerging from their COVID-19 cocoon and investing in property, and they have some very specific needs when it comes to the properties they choose to diversify their investment portfolio.

According to real estate advisors like Miami’s Leila Evloeva, there are several trends that provide insight into what motivates luxury property buyers, and it’s not all about long-term returns.

“There are a number of factors that influence luxury property purchases as we move towards 2025. My high-net-worth clientele is increasingly focused on holistic livability, rather than exclusively focusing on a property as an investment for long-term returns,” says Evloeva.

Evloeva cites increasing demand for homes that provide a lifestyle focused on wellness and sustainability, an increased interest in smart homes and technology, privacy and security concerns, and above all, personalization.

The Path to Personalization 

Luxury homes transcend being mere residences, embodying both opulence and elegance as clear symbols of wealth. Whether it’s a secluded island villa or a modern city estate, these properties epitomize the height of refined living, carefully designed to reflect the status and meet the distinct preferences of affluent homeowners. 

With exclusivity and personalization in high demand, architects and designers are embracing innovative materials and advanced technologies. This approach results in bespoke spaces that blend comfort, functionality, and sophistication, offering a cosmopolitan lifestyle. 

Evloeva notes that the demand for customized luxury homes is growing, with an emphasis on features tailored to individual tastes and lifestyle requirements. 

According to this 8-year expert of the U.S. and international property market, “The key to finding a luxury property that meets a client’s unique needs lies in thorough research and empathy. It’s my experience that simply providing a list of properties that meet sea or mountain view requirements or meet the client’s request for floor space is not going to provide them with the value that they seek.”

For Evloeva, delivering true value to clients involves balancing their long-term financial goals with a deep understanding of their personal lifestyle preferences. In the luxury real estate market, where comfort and lifestyle are paramount, grasping cultural nuances and individual tastes is crucial. Desirable features often encompass gourmet kitchens, home theaters, spa-like bathrooms, private pools, and expansive outdoor living spaces.

“What these clients are looking for is a retreat from their sometimes incredibly stressful lives. These are clients that can be extremely demanding, and getting to know them, their background and culture, as well as their hobbies and interests and their family structure is absolutely essential to find them that perfect living space.”

“For example, if you don’t know that the client enjoys classical music and has invested considerable sums of money on a state-of-the-art sound solution, you’re not going to think about the acoustics of a space or the effect that furnishings and decor are going to have on their sensory enjoyment of their home.”

At Home with Tech

Evloeva also notes the impact that the rapid evolution of smart home solutions has had on client requirements.

“There’s no doubt that smart management systems and automation are becoming part of the buyer equation. These buyers want their houses to be a haven of relaxation, making solutions like smart AI-controlled lighting, intelligent HVAC systems, and even smart irrigation systems, a non-negotiable.”

Evloeva has also found that smart security systems are also increasingly in demand. 

“Wealthy clients have always been focused on security, but the perception that criminal activity targeting high-net-worth individuals is increasing has led to a surge in demand for these types of systems,” says Evloeva.

A Closed Ecosystem

At the height of the coronavirus pandemic, many individuals found themselves, either through regulations or personal choice, spending much of their time at home. Wealthy individuals were no different. However, the combination of perceived high crime levels, civil unrest and high-stress business responsibilities has seen what is called ‘Cocooning’ becoming a lifestyle choice.

Evloeva explains how this trend is impacting luxury property choice, “Cocooning is an attractive option for those who want their property to be a retreat from the world. Wealthy individuals are more than happy to spend time on their properties if they have access to amenities that might otherwise be located off-site.”

For these buyers, value-added on-site features like multiple spa-type amenities, gourmet kitchens (often complete with a 5-star chef), dedicated home theatres, fitness centers, and heated pools are important.

Evloev shares, “These are discerning buyers who want to spend quality time at home, often with their families. They’re happy to retreat from the outside world, but they want the premier when it comes to home comforts.”

A Value-Added Philosophy

Evloeva holds a Bachelor of Fine Arts in Business Management (Architectural Design Management), a Bachelor of Business Administration and an MBA from the University of California, Berkeley. This diverse educational background and her experience in the field of architecture equip her with a unique skill set that enhances the client experience.

“Emotion is a key factor in deciding to invest in a luxury property,” she explains. “High-net-worth investors focus on balancing livability with long-term return on investment, and an advisor needs to recognize both of these priorities. I make it a point to truly get to know my clients, which enables me to provide much more than a simple list of potential properties.”

To get more insight into the luxury property market and Leila Evloeva’s unique approach to luxury investment visit her LinkedIn page.

Published By: Aize Perez