Just over a third (35 percent) of high net worth individuals (HNWIs) view real estate as the most obvious indicator of wealth, according to a report by Luxury Portfolio International, entitled Luxury Real Estate: What Matters Most to Today’s Global Elite.
The research, which includes data from YouGov, also found that 38 percent of those surveyed are looking to buy luxury real estate within the next three years, which compares with just 23 percent being interested in selling, pointing to a continuation of a seller's market in the high-end. This difference is most dramatic in Asia where just 18 percent are looking to sell compared with 68 percent looking to buy.
Globally, 78 percent said their residence is a home, a place with emotional ties, rather than just a house, with 37 percent saying that an emotional tie was the top reason they purchased their current primary residence.
It was only in North America that the lot, location and size of the home was given as a bigger concern. "Despite this emotional connection, 85 percent of wealthy buyers consider the purchase of real estate a rational choice," said Stephanie Anton, president of Luxury Portfolio International. "Real estate signifies success for these buyers, both internally and externally to their peers."
Additionally, the research found that 41 percent of all HNWIs surveyed are looking to purchase a traditional-style home for their next personal residence and that the top reason (40 percent) that luxury home buyers gave for the purchase of a personal residence is to improve their quality of life.
Luxury Portfolio International is the luxury home marketing division of Leading Real Estate Companies of the World, a global network of premier locally branded companies. It marketed over 57,000 luxury homes to over three million HNW visitors last year.