Interesting new research presented in a report entitled “The Affluent Homebuyer: A Quest for Meaning” from Luxury Portfolio International (LPI) and YouGov can help guide international real estate marketing efforts. HNWI buyers are put into three (rather curiously named) categories:
• Practical Explorers (buyers of $1-$2million homes) seek trusted experiences and 80% prefer to work with a real estate agent on their transactions.
• Meaning Seekers (buyers of $2-$5million properties) are luxury lovers who proudly assert that once you experience true luxury, it’s hard to scale back (71%). They also value sustainability (74%) and want their purchases to mean something.
• Power Players (buyers of homes at $5million+) acquire the finest, most premier properties and are willing to pay to get them, with 83% saying they choose the best and expect the price to reflect this. They are motivated by a desire to ‘have it all’ and want to feel confident that what they have purchased is unrivalled excellence.
For the $million-plus homebuyer, the most important trait they look for in their estate agent is trustworthiness. The second and third are ‘knowing the details that distinguish the best’ and ‘taking the time to understand my needs’.
HNWIs have high – and ever-increasing – expectations of what ‘luxury’ offers them and they know that with each passing year they can expect more; as such, developers, designers, and hotel operators must continually raise the bar by delivering cutting-edge design and innovation along with 5* hotel and concierge services. Once properties have been built to these specifications, international real estate marketing professionals must look for opportunities to promote the luxurious experience. On this issue, LPI’s Stephanie Pfeffer Anton makes a poignant observation when she comments that the standard of luxury property today is very different from that of even a few years ago: “What passed as a luxury experience even five years ago, today feels tired and uninspired. The principle of luxury that matters today is emotional connection, which starts with human interaction and transparency in the process.”
In addition to an emotional connection, buyer motivations are becoming increasingly experiential (defined as ‘something that creates a closer bond between the consumer and the brand by immersing them in a fun and memorable experience’). An article published by Luxury Society on HNWI trends states, ‘They want cool, they want fun and they want experiences,’ whilst a study found that 70% of Millennials in the US now “…look for experiences that stimulate their senses”. As reported in our study on Branded Residences, Lynn Villadolid (former Six Senses Director & Brand Ambassador) succinctly observes; “There is now a myriad of top hotel brands offering supreme quality FF&E, so the choice is much more about how the brand’s values appeal to the buyer’s emotions, intellect and soul”.
Which all presents interesting challenges (or opportunities, depending on your viewpoint) for real estate developers and international real estate marketing professionals to stay ahead of the curve, remembering always that the customer remains king. Or queen.
