International Buyer Trends Report
Luxury Portfolio International has released its latest report, which follows the State of Luxury Real Estate 2021 report released in January. From this report, we have gained astonishing insights into the real estate market and what the international buyer looks like. The last year has proven that real estate is an investment that can endure challenging times and even has the potential to thrive in these economic circumstances. Based on the research, the international buyer is defined as highly mobile, motivated by feelings of self-reliance and after months of searching for a home is looking to add excitement and fun to their life. Let’s take a deeper look at the amazing findings in the market from the International Luxury Buyer Trends and Demand report!
Luxury buyers have the opportunity to search for homes all over the map, and are now considering where they will be moving with the purchase of their next home. An astounding 78% of luxury home buyers are interested in domestic properties, while 22% are in the market for an international home in the next 3 years. The total number of international luxury home buyers in the market is estimated at 2.25 million households globally over the next 3 years. There are approximately 1 million households looking to buy in 2021. The luxury real estate market is witnessing a vast amount of buyers coming up in the couple years, increasing popular destination spots globally.
Locations around the globe are showing interesting results in the luxury real estate market. Asia-Pacific has the largest number of international luxury home buyers with about 300,000 households. In comparison to their large population size, international purchasing is below average. In contrast, Europeans are showing extremely strong demand per capita but interestingly have the smallest market in numbers. Shockingly, Europe is 55% higher than the global average of luxury home buyers. European buyers are also most likely to choose a destination near their home continent.
There are many popular destinations across the globe, but the top choice of all international luxury home buyers is Hawaii. The Aloha State has a significantly higher margin of buyers than anywhere else in the world, with one in five seeking a residence there. Europe is receiving a high amount of interest amongst international buyers, with one-in-three likely to end up in that location.
Why are all these buyers looking for new destinations? The report found the top reasons for choosing a destination in the luxury market is that home buyers are seeking a better quality of life, investment potential in the new country, and lastly the future flexibility that they may not currently have readily available. With buyers having large motivation to move internationally, the next step is to consider the budget that is readily available. Most buyers in the $1 million-to-$3 million range, with the median purchase price being $2.75 million.
In such challenging times, people can create unexpected opportunities in the luxury real estate market. Many individuals are finding new options for living with a strong motivator of having a second passport. Buyers have the ability to travel easily between countries with distance becoming less of a hindrance than one might imagine. With quality of life improving, the luxury home buyers are more motivated than ever before to purchase property. New destinations will take care of buyers’ needs for entertainment and enrichment. Connect with Seven Gables Real Estate today to choose your next luxury home destination!