The Luxury Housing Market in 2020: 6 Trends to Watch
Friday, January 17, 2020
Forecasts for the luxury housing market in 2020 are bright. Experts say American buyers were a bit hesitant to buy in 2019 because of a feared economic slowdown and uncertain political climate, but these fears have since dissipated. As a result, forecasters say more elite buyers – from all over the globe – are more likely to buy real estate this year, says Penta.
Of course, sweeping real estate predictions are hard to make as every market is different. Last year, for example, the luxury home sales in many U.S. cities were stagnant while high-end house sales in places like Baja’s East Cape were climbing.
Real estate experts predict an equally impressive year in luxury home sales in East Cape, especially in newly developed resort communities.
Here are six trends likely to occur in the luxury home market in 2020:
1. Secluded areas become the main draw
The world’s top buyers will lean more towards quiet, secluded homes rather than crowded, urban homes. Luxury home sales in East Cape, for example, are rising in part because of its undeveloped locale.
East Cape is the exact opposite of Cabo, even though they’re only separated by about 40 miles and a few dirt roads. Cabo is a celebrity haven with a rowdy night life and crowded beaches. East Cape is a throwback to Old Baja, with mostly undeveloped land, miles of untouched beaches, and more locals than tourists.
The area is surrounded by natural beauty. With the Sierra de la Laguna Mountains in the background and the sapphire-hued Sea of Cortez in the forefront, it’s this kind of landscape that buyers will opt for in 2020 over busy streets and skyscrapers.
Along the untapped stretch of East Cape, Baja’s most southern point, are several new resorts that have become a huge draw for its anti-Cabo atmosphere and opulent villas and beachfront homes.
2. Exclusivity is a growing attraction
For many high-end home buyers, privacy is a huge concern. Celebrities want a place to be themselves without being followed by paparazzi or crazed fans. For this reason, resorts that offer exclusivity are high on their buying list.
Residents who purchase a villa or residence in the Costa Palmas resort community, for example, have exclusive access to the Costa Palmas Beach Club. The club gives residents private access to a beach, an adventure club, and a super-yacht marina.
The club represents a new era of exclusivity for Baja; one that will likely drive luxury home sales in East Cape.
3. Amenities are just as important as location
High-end buyers aren’t just looking for a home in a great area, they’re looking for a home that’s surrounded by convenient amenities. Elite buyers can find a beachfront home anywhere, but what they can’t find is a beachfront home with a swimmable beach in the front yard, a yacht cove, water sports at the ready, and an 18-hole golf course that’s next door. To buyers, amenities – and their proximity to a home – are a big deal.
In 2020, VIP buyers will be more selective in their home choices; opting for residences complemented with favorable amenities.
4. Service and personalization combine
For high-end buyers purchasing luxury homes in East Cape, personalized service is a requirement. When residents walk into the beach club, for example, they want the staff to know their name, seat them at their preferred table, and ask if they’d like their favorite drink before they eat.
Resorts like Costa Palmas are delivering on this level of service. Lorenzo Mietitore, the general manager of the property’s beach club, says the staff caters to a wealthier, more sophisticated, and better traveled clientele. To do so, Mietitore says he and his staff, “Know where residents want to sit, how they want to be treated throughout their stay, what they like and what they don’t. Residents aren’t a number at the Beach Club.”
5. Customization isn’t optional
Luxury buyers aren’t looking for cookie-cutter homes. They’re looking for homes that are one-of-a-kind. It’s not enough to knock out a wall, redo a kitchen, or change the décor. This trend will likely drive a lot of new construction buys as homeowners work with a builder or a resort community to create a customized home from the ground up.
6. In-home features that make life easier
Luxury buyers want amenities outside their door, but they also want amenities in their home. They want the ability to lounge by their pool, host a low-key dinner on the outdoor deck fit with a full kitchen, and utilize home automation.
More specifically, here are some of the in-home features that high-end buyers will look for this year:
• Guest suites
When people come to visit, elite buyers want more than a guest room they want a guest suite. Suites are often equipped with a bed, a small work space, a TV viewing area, a bathroom, and in some cases, a small kitchen area.
• Lounge pools
As mentioned, having a quiet day sitting on the deck of your own pool is ideal. Depending on the buyer, the pools can be a simple, understated area or it can be a focal point of the home with grand features like waterfalls, lush landscaping, and outdoor showers.
• Smart home features
The increase in home automation has more buyers looking for smart home features. In new homes and resort communities, having phone-controlled thermostats, window treatments, music on demand, and voice-activated activities are fairly common. Buyers looking at older homes often have automation features installed after-the-fact, which can be difficult and costly.
High-end home sales are expected to climb this year, and secluded, tropical destinations like luxury homes in East Cape will likely be a hub of activity. Buyers might be more willing to buy this year, but they do have a definitive wish list. Residences offering exclusive opportunities to beaches and activities, personalized on site-services, and elevated home features like guest suites and home automation will sell well in 2020.