What luxury home buyers are looking for (and how much they want to spend to get it)

A look at the luxe life

More than a third of high net worth individuals think real estate is the most obvious sign of wealth. But what exactly are these buyers looking for in their properties? A new study breaks it down.

What luxury looks like

What are the world’s elite looking for in luxury homes? According to the new Global Real Estate Report from Luxury Portfolio International, it’s an urban property with four bedrooms, three bathrooms and 3,000 to 5,000 square feet.

They also prefer a traditional, contemporary or modern style of architecture. Mountain and beach homes rank lowest with this cohort.

Price-wise, 44 percent of luxury home buyers want to spend $1 million to $1.49 million on their property. Just 8 percent plan to spend $5 million or more.

Why they buy

Nearly 40 percent of high net worth individuals are looking to buy a home in the next three years. Though a large number of these buyers consider the move a “financial investment,” more cite improving their quality of life as the No. 1 reason to purchase real estate.

When searching for potential homes, 37 percent say they want to feel an emotional connection to the property, while 32 percent say the physical space, lot, location, neighborhood and layout are most important. Price and proximity to entertainment and family are the least important factors for luxury buyers.

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“For most luxury home buyers, the emotional value of a property outweighs the practical features,” the report found. “The goal is to have a life well lived: personal growth, security and a customized environment with room for many happy memories. While a home’s amenity suite is clearly important to the decision process, it’s the ability to see oneself living comfortably that brings buyers over the threshold.”

Though most elite home buyers aren’t driven by listing price, they do want to use their dollars wisely. Nearly 60 percent say they want a home that will appreciate in value.

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