Inman News

How consumer trends in personal luxury goods open up new possibilities for luxury real estate.

The personal luxury market is in a constant state of flux. From art to watches to wine, the luxury market responds to increasing consumer demands for accessibility, personalization and secure service.

Accessibility

Accessibility — that elusive blend of convenience and connectivity that doesn’t undermine exclusivity — is surfacing in the luxury real estate industry in two significant ways.

The first is in the realm of digital technologies, which are already an intrinsic component of daily life for the busy, connected consumer. Affluent customers expect the advantages of digital to carry over into the luxury market. McKinsey & Company predicts that by 2025, nearly one-fifth of personal luxury sales will happen online, while brands like Burberry are already leveraging innovative digital marketing tactics and offering ease-of-purchase solutions to capture the loyalty of affluent millennials.

For the luxury home buyer, accessibility can also mean proximity. Already accustomed to services on demand, these consumers are prioritizing living near city centers and close to their places of work, and look for amenities like gyms, parking, and restaurants within easy reach.

Security

Physical security has always been a luxury of sorts, but as more business and personal interactions are enacted online, total data security is more important than ever. Data safety is of particular concern for affluent consumers, who are risk-averse and vigilant about how and where their money is invested.

Customization

In the past, luxury was often associated with objects — the must-have handbag, the sports car. But in recent years, this focus has shifted: the emerging affluent demographic looks to luxury purchases to communicate their identity — who they are, what they care about, how their choices indicate taste and creativity and ethics.

This spotlight on personalization has bled over into how the modern affluent buyer chooses a home. Many affluent millennials are now focused on quality per square foot, and how a home suits their lifestyle. This means that the finer details of a home become paramount — better-quality fixtures, peak amenities, and location can sometimes trump square footage.