According to a recent study on the global prime property market, ‘Trophy’ has become the new buzzword in Luxury Real Estate. More than ever before, properties were both sold and listed for sale at $100 million or higher 2014. With the tech industry consistently growing as well, the list of number of billionaires keeps expanding.
Many people, whose worth falls into the million to billion-dollar category, have turned to collecting high priced cars as a way to display their wealth. The rise in the number of billionaires around the globe has led to new spending behaviors. Luxury home purchases are now being viewed as collectibles. The $100 million dollar price tag is considered as the billionaire benchmark for luxury homes.
At the more traditional residential real estate segments, the market experienced a steady growth in 2014. A survey reports that $1 million plus home sales went up by an average of 16 percent during 2013 in the 80 luxury residential markets such as the Rancho Santa Fe Real Estate market. This caused for second-home resort markets to explode in 2014, leading the growth in the luxury property sales.
As millenials grow older, they are transforming into buyers that are seeking luxurious urban amenities. Their estate purchasing behaviors helped fuel the growth in the high-value urban luxurious estates.