In a recent post we explored what really defines a home as luxury, since the term has often been abused. This is because “luxury” is subjective. Indeed, what one person might consider luxurious can be quite drab to someone else.
Regional markets, however, do have their own quirks, and usually the properties tagged with the “luxury” label in an area are comparable to each other. Here are a few major cities and the defining features of their luxury real estate markets.
In the Big Apple, space is a commodity that is hard to come by. Luxury homes in the city might not necessarily be large in the physical sense, at least compared to rural and suburban homes in more spread out areas. No, luxury in New York is defined by uniqueness of design, history of the property, and the credentials of the architect. In a city where people of every personality type exist, your home has to have its own style in order to stand with the elite.
Generally, the price point for luxury homes is $1 million or more. The area you target will determine what you can get for those millions you’re spending. In Chicago, you’re likely to be able to get a lot more property space than if you are in New York City. Chicago’s general real estate market actually has lower costs than many major U.S. cities, but it is also home to some of the highest purchases. It has been noted that wealthy business people prefer urban situations so that they can easily maintain connections with business contacts. Being near an airport is convenient for those that travel.
Because of Chicago’s business-oriented vibe, luxury is defined largely by price tag, with size and amenities as supplemental factors. Pools and other outdoor features are big attractions for summertime usage.
In London, recent tax increases for homes priced over 2 million pounds are making buyers feel as if they’re not welcome in the city. This might be the explanation for younger buyers choosing other locations for their luxury purchases. Unlike New York and Chicago, London’s luxury market is on the decline.
Even more so than New York, London luxury is defined by the historical aspects of a property and the reputation of the names associated with it. Even new properties will emphasize historical-inspired architecture to use to its advantage. The story is the most important aspect of the property.
Thanks to Toby Lancaster for his contribution to this post.