New era of luxury real estate: the vector of movement

The luxury real estate market is undergoing a transformation. After a downturn caused by the pandemic and rising interest rates, there is a resurgence of interest in premium housing.

However, the days when a high price per square meter was enough are over. The modern buyer is a discerning client who demands not just luxury, but also investment appeal, sustainability and suitability for his or her lifestyle.

Reports from leading research agencies such as Knight Frank and CBRE confirm this paradigm shift.

A 60% decline in real estate investment flows compared to the 2021 peak is a serious indicator. Rising bond yields and higher lending rates have affected the market. However, the situation is changing. 44% of family offices managing the capital of the world's richest people plan to increase investments in luxury real estate. This indicates a restoration of confidence in this sector as a reliable tool for preserving and increasing capital, surpassing even cryptocurrencies in its stability.

At the same time, there has been a significant shift in preferences: demand has shifted from commercial real estate (offices, retail space) to residential. Residential real estate has demonstrated much greater resilience during the crisis, which has attracted the attention of investors. Interestingly, even the younger generation of wealthy people (18-35 years old) is actively participating in this trend, choosing "concrete gold" as a reliable asset.

1. New locations: The "Great Millionaire Migration" is not just a metaphor. Every year, tens of thousands of wealthy people change their place of residence, looking for better living conditions and investment opportunities. Locations with developed infrastructure, high level of security, beautiful nature and a favorable tax climate are gaining popularity. These can be both established prestigious areas and new developing territories with exclusive projects.

2. Sustainable development and ecology: Wealthy buyers are increasingly paying attention to the environmental aspects of the project. Energy efficiency, the use of environmentally friendly materials, the presence of green areas are important factors when choosing housing.

3. Infrastructure and service: An important criterion is not only the housing itself, but also the infrastructure surrounding it. This can be access to the best schools and universities, proximity to cultural and entertainment centers, the presence of sports facilities, high-class clinics, as well as a high level of service provided by the developer or management company. Concierge service, security, and home management services are integral attributes of luxury real estate.

4. Technology and automation: A smart home is no longer a luxury, but a necessary attribute. Security systems, climate control, lighting and home appliances via smartphones are what modern buyers expect.

5. Personalization and individuality: Standard layouts are becoming a thing of the past. Buyers of luxury real estate strive for individuality and personalization of their homes. The ability to change the layout, choice of finishing materials and furniture are important factors when making a purchase decision.

The luxury real estate market is dynamic and constantly changing. To be competitive, a project must take into account all of the above trends. Only then will it be able to attract the attention of discerning buyers and become not only a prestigious place to live, but also a reliable long-term investment. Investors are looking not just for expensive square meters, but for a unique lifestyle integrated into a progressive and sustainable environment.