Real Estate Investing Information Blog

Luxury real estate (or luxury property in British English) is the real estate market niche targeted at the maximum socio-economic group of consumers.

The characteristics that describe Luxury real estate differ among countries. However, location mainly defines the property's value, especially with respect to whether it offers views (mainly, waterfront ones) or amenities such as closeness to golf courses, school districts, and the downtown district. Thus, a 750 square-foot harbor home with less than one acre of property might be worth extra than a 10,000 square-foot mansion with ten acres of property.

In the earlier example, the former would be called a "luxury property", whereas the later would be called a "luxury home". Both properties, however, due to their high value, would be classified as "luxury real estate".

Luxury real estate in any exacting region is usually defined as property worth more than a certain lower limit; for example, homes worth more than $1 million in the United States are generally classified as Luxury real estate. The classification also takes into account the attendance of surrounding homes, amenities, views, waterfronts, absence of crime-rate, industrialization or surplus commercialization, customizations of the home, and historical or architectural significance.

Luxury real estate entails greater liability for agents who grip transactions than ordinary real estate. They must promote to a national audience to attract non-local buyers, whereas ordinary real estate only normally requires exposure in local media. There are also greater lawful responsibilities for the luxury estate agent, which often involve attorneys, trusts, and anonymity issues. Buyers often require extra inspections than with normal real estate (which are normally bought after a single inspection).