The general opinion is straightforward.
If the property is big, outfitted with resort-like essentials such as a pool, comes landscaped, and is attached to a hefty price tag, it is a luxury property.
However, with the ever-changing market, the definition of luxury estates is shifting as well.
No longer does the phrase exclusively refer to palatial estates, soaring mansions, and apartments in high-end locations.
In its place is a wide set of parameters that redefine luxury in terms of location, amenities, architecture, living capabilities, and a myriad other factors.
This begs the question… Is your luxury property truly worth its title?
One important factor that contributes to a property’s “luxury” rating is its location.
Traditionally, any property located in what is considered to be a prominent address or ZIP code is automatically bestowed the title of “luxury home.”
For perfect examples, think of homes in Los Angeles’ famed Beverly Hills, or an apartment suite in Avenue Park Central, New York.
However, this is slowly changing.
New luxury towns
In capitals like London and Hong Kong, for example, more and more buyers, whether domestic or foreign, are slowly moving out of the usual areas associated with luxury estates.
This is largely due to the fact that the more traditional enclaves for top- end dwellings have been settled in – pricing out younger but equally affluent buyers.
This has driven developers to gentrify old neighborhoods or turn former business districts and industrial areas into new luxury towns with cutting-edge home design and refurbishments, technology-driven amenities, and a neighborhood filled with shops that mix hip and luxe.
Kowloon Island in Hong Kong is a prime example of this, as well as London’s Battersea District.
New standards of luxury
This rapid change in the real estate market has also expanded the definition of luxury real estate. No longer is it solely tied to its area or its address.
Now the following factors are coming into play:
- Smart homes and the Internet of Things
Smart home features were once the stuff of science fiction – homes that did your bidding at the touch of a button. Today, it’s the standard. Everything in a home can be monitored or controlled: temperature, lights, security, and so on.
Higher-end homes now seamlessly integrate appliances with security systems and other electronics, which can all be controlled remotely and connected wirelessly.
The more sophisticated the integration or activation (voice controlled, for example), the more “luxurious” a home is deemed – and rightly so.
Imagine being able to check and control every aspect of your residence – even when you’re off visiting or doing business on the other side of the world.
- Extreme practicality
How odd that the very antithesis of luxury would come into play to define the new luxury estate.
The truth however is simple: a luxury estate is still a home and as all homes go, practical use trumps everything.
This time, however, it’s practicality taken to its utmost or extreme. For example, how close is your home to the establishments you deem essential? How extensively did the developer upcycle materials, adhere to sustainable practices, employ off-grid power?
The defining factor of a luxury estate is the answer to the following question:
How much does the property fulfill the prospective buyer’s definition of what a luxury lifestyle should be?
A piece of property should put truth to its claim of having the “best view in the city,” “resort-like amenities,” or “peaceful privacy.”
For prospective buyers, check if the luxury home you’re eyeing offers you the lifestyle along with the features and the price tag.
Otherwise, if you feel like you’re being shortchanged when it comes to the “lifestyle side” of luxury properties, then it’s better to invest your money elsewhere.