In general, luxury real estate typically refers to large and distinctive properties in sought-after locations. Property size, design, specifications, materials, workmanship, and functionality are just some of the factors that help define a luxury home. Moreover, luxury properties are among the top 10% of properties on the housing market in terms of price and prestige.
Depending on the market, luxury home prices typically range between $2 million to upwards of $40 million. Ultra-luxury properties can command $100 million or higher depending on location, square footage, amenities, and other specifications.
However, luxury homes aren’t just very expensive properties. When it comes to real estate, luxury is less about the price tag and more about the experience of owning and living on a given property.
The old adage “location, location, location” certainly applies to luxury real estate. In general, a luxury home has a coveted address within an affluent community, vibrant city, or world-class destination. Most luxury developments can be found in established neighborhoods and gated communities. These areas offer a high quality of life and ensure strong home appreciation over time.
They may also be located along roads or streets with some of the most stunning views in the area. And then there are beachfront properties and mountainside homes that command high prices due to their natural setting. Waterfront homes and golf course properties are often considered trophy properties among buyers who enjoy scenic views and outdoor activities.
In luxury homes, custom finishes, artisanal design, and rare and premium-quality construction materials are the norm. It is not unusual for these properties to contain hardwood flooring, custom cabinetry, and marble, drapes, and furniture sourced from Europe, for example.
Luxury real estate is also synonymous with top-of-the-line appliances, including luxury brands such as Wolf and Sub-Zero. Gourmet kitchens with spacious counters and restaurant-grade appliances are a must for wealthy buyers who love to entertain friends and family at home.
Luxury homes go beyond luxury appliances and include smart home technology for enhanced comfort and convenience. Smart tech such as motion sensor lighting, programmable thermostats, UV closets, and app-operated and network-connected systems have become common features of luxury homes.
Beverly Hills luxury real estate is known for stunning architecture. The community offers a wealth of architectural styles. These include Mediterranean, Spanish Revival, Mid-Century Modern, Contemporary, and Modern-style architecture, just to name a few.
Fine architecture is often a mark of luxury. This is especially true for architecturally significant properties that have been designed by famed architects like Wallace Neff, Richard Neutra, Frank Lloyd Wright, and so on. This gives the home greater prestige and provenance among discerning buyers.
Luxury homes serve as a lifestyle enhancement for affluent buyers who enjoy the finer things. These properties often have lavish amenities that range from lap pools and jacuzzis to well-equipped gyms and on-site basketball and tennis courts. These amenities set luxury homes apart from standard or mid-tier properties.
Homes located within upscale communities also provide access to shared amenities like private clubs with Olympic-sized pools, golf courses, banquet facilities, and state-of-the-art gyms that cater to the demands of wealthy individuals.
Security and Privacy Measures
High-income individuals are concerned about their privacy and security, and are willing to pay a premium for peace of mind. It is customary for luxury properties to have advanced security features that allow for controlled access, remote surveillance, and security planning.
Luxury homes typically come with smart locks, CCTV, and safety alarms for fire, carbon monoxide, and intrusions. In addition to advanced technology, luxury real estate makes use of design to enhance safety and security. Many luxury homes have reinforced gates, high walls, long driveways, expansive lawns, and foliage for cover. Many upscale properties also have dedicated buildings and accommodations for security personnel.
Customization and Personalization
It is not unusual for luxury properties to come with custom features that reflect the tastes and interests of their owners. These typically include custom shelves and displays for wine bottles as well as murals that have been commissioned from prestigious artists. Some upscale homes may also have handmade ornaments and other artisanal elements that cannot be replicated in the mass market.
Rarity and Limited Availability
Limited availability also defines luxury real estate. This is especially true for waterfront lots and beachfront properties, which have become increasingly scarce as waterfront areas become subject to development. The same goes for exclusive communities like Beverly Hills, where there are limited lots and fewer homeowners who are willing to sell. Zoning laws and regulations may also limit real estate development in a given area, affecting housing inventory and driving up home prices.
Shift Towards Wellness Amenities
Following the coronavirus pandemic, many affluent buyers have become more aware of the importance of health, hygiene, and wellness. This awareness has extended to luxury amenities, which have come to include high-end spas, infrared saunas, cold plunge pools, meditation rooms, organic gardens, yoga decks, and more. Many wealthy buyers have also come to infect no-touch faucets, UV disinfection, air purification units, and other features that help maintain a high standard of health and sanitation in their spaces.
Branded Real Estate
Prestige brands are closely associated with luxury and have ventured into real estate and hospitality over the last few decades. Many wealthy buyers are happy to work with branded developers with a strong track record of delivering projects. Branded developers typically offer curated furniture and art pieces along with exquisitely crafted homes to meet the demands of high-income earners.