Luxury real estate (or luxury property) is the
real estate market niche targeted at the highest socio-economic group of consumers.
The characteristics that define Luxury real estate differ among countries. However, location largely defines the property's value, especially with respect to whether it offers views (particularly, water front
properties) or amenities such as proximity to golf courses, school districts, and the downtown district. Thus, a 750-square-foot waterfront home with less than 1-acre of property might be worth more than a 10,000-square-foot mansion with 10 acres of property.
In the previous example, the former would be called a "luxury property", whereas the latter would be called a "luxury home". Both properties, however, owing to their high value, would be classified as "luxury real estate".
Luxury real estate in any particular region is generally defined as property worth more than a certain lower limit; for instance, homes worth more than $1 million in the
United States are generally classified as Luxury real estate. The classification also takes into account the presence of surrounding homes, amenities, views, waterfronts, absence of crime-rate, industrialization or unwanted commercialization, customizations of the home, and historical or architectural significance.
An 8,380-square foot luxury home in Chicago's Lincoln Park neighborhood
Differences from ordinary real estate
Luxury real estate entails greater responsibility for agents who handle transactions than ordinary real estate. They must advertise to a national audience to attract non-local buyers, whereas ordinary real estate only generally requires exposure in local media. There are also greater legal responsibilities for the luxury estate agent, which often involve
attorneys, trusts, and anonymity issues. Buyers often require more inspections than with ordinary real estate (which are generally bought after a single inspection).
Luxury real estate magazines
Companies operating in the luxury real estate market often publish their own magazines online and in print, meant to publicize their brands. Examples include Panache Magazine, published in New York by luxury real estate broker Panache Privée, Christie's Great Estates magazine, published by Christie's Great Estates, the real estate division of Christie's auction house and Previews magazine, published by Coldwell Banker.
The Legends of Luxury Real Estate: Volume I (Hardcover)
A penthouse in Manhattan. A ski chalet in Whistler, British Columbia. A beachfront estate in Miami. Welcome to the world of Luxury Real Estate, where a home isn't just a roof overhead but an entire way of life. The Legends of Luxury Real Estate: Volume I provides a glimpse into the lives and careers of the luxury real estate specialists who represent some of the world's most spectacular properties. You'll discover how 25 members of the exclusive Luxury Real Estate network, led by CEO John Brian Losh, got their start in the industry and why they choose to live and work in the cities and areas they do. You'll also take a photo tour of some of the most luxurious and unique homes each broker has represented in the course of his or her career.
Publisher: Luxury Real Estate, a division of John Brian Losh, Inc. (September 1, 2005)