Super-wealthy still buying luxury homes

People who have net worths of $50 million or more are still interested in purchasing high-end real estate in Florida and elsewhere despite the softening market for luxury homes. There are approximately 123,000 people worldwide who have that status and who make up the global top 1 percent.

Luxury Portfolio International and YouGov Affluent Perspective conducted a survey of the global top 1 percent in 12 countries. They found that super-wealthy were optimistic yet cautious about purchasing luxury homes in the current worldwide economy. The number of super-wealthy individuals has swelled by 53 percent since 2011. A majority of people in this category live in North America.

Sales of U.S. homes worth $1 million or more in July 2016 fell by 4 percent from July 2015, according to National Association of Realtors data. However, the study’s authors still say that the people that they survey have a strong interest in purchasing new homes. In the U.S., one-quarter of those who answered the survey reported that they plan to purchase new homes within the next three years. Eighteen percent reported that they plan to sell homes during that same time period. However, buyers outside of the country were more bullish, with 45 percent of them stating that they planned to make a purchase during the next few years.

Developers who plan new residential real estate projects might want to consult with a real estate attorney about the market. Legal counsel can in many cases provide advice about financing sources as well as applicable zoning laws and other regulatory matters that could affect the client’s proposals.