Luxury real estate is often nestled in sought-after locations, boasting lavish amenities, ranging from state-of-the-art kitchens to private pools and awe-inspiring vistas.
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As an international real estate agency, the DE COSTA GROUP recognises the immense potential within the luxury real estate market. This article will delve into the transformative trends reshaping the industry and shed light on the prospects in the next decade.
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The Growth of the Ultra-High-Net-Worth Population
The upcoming decade holds immense promise for the luxury real estate market as ultra-high-net-worth individuals (UHNWIs) are projected to experience substantial growth. According to the esteemed World Wealth Report 2022 by Credit Suisse, the number of UHNWIs is anticipated to surge from 261,000 in 2021 to an impressive 355,000 by 2026. This notable expansion within the UHNWI segment will inevitably fuel heightened demand for exclusive luxury real estate properties, shaping a dynamic landscape of unparalleled opportunities.
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The Rise of Second Homes
The evolving dynamics of the modern world have sparked an increased demand for second homes within the luxury real estate market. Here are some key factors contributing to this trend:
- Remote work flexibility: The rise of remote work has liberated professionals from traditional office settings, allowing them to work from anywhere. This newfound freedom has prompted many individuals to seek second homes in desirable locations as they can now combine work and leisure seamlessly.
- A desire for escape and rejuvenation: Second homes serve as private sanctuaries where individuals can retreat from the hustle and bustle of daily life. People increasingly seek serene and refreshing environments, such as beachfront properties, tranquil mountainside retreats, or scenic countryside estates.
- Investment and rental opportunities: Second homes present an opportunity for both personal enjoyment and potential financial gains. Many luxury buyers recognise the investment potential of acquiring a second property in popular tourist destinations, which can be rented out when not in use, generating passive income.
- Lifestyle and leisure amenities: Luxury buyers are drawn to second homes that offer a range of recreational amenities, such as access to exclusive golf courses, proximity to world-class ski resorts, or private beach access. These features enhance the overall lifestyle experience and create a sense of exclusivity.
- Long-term planning and retirement: Some individuals purchase second homes to use them as retirement residences. Investing in a luxury property early on provides the opportunity to secure a dream retirement home in an idyllic location, ensuring a high quality of life in the future.
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The demand for second homes in luxurious destinations continues to rise, reflecting a desire for balance, escape, and investment opportunities. As the world evolves and lifestyles evolve, the allure of owning a second home remains a compelling aspect of luxury real estate investment.
The luxury real estate market is poised for significant growth and transformation in the next decade. The DE COSTA GROUP recognises this potential and the industry’s evolving trends. With the rise of UHNWIs and the demand for second homes, the market offers unparalleled opportunities for investment and a high-quality lifestyle. As we look ahead, the future of luxury real estate is filled with promise and exceptional possibilities.