Location is key in the luxury marketDecember 18, 2007
Valuation of any home takes into account its size, features, condition and location. Of these factors, location is the one element that cannot be altered. A home in a high demand location will always represent a greater market value than a comparable home in a less desirable location. Buyers who can afford to pay top dollar for a select property usually choose homes priced in the top ten percent of the market in the finest locations.
Proximity to the finest goods and services is important for luxury homebuyers who maintain an active social calendar. These buyers want access to high-end boutiques, five-star restaurants and catering, spa facilities and cultural venues such as theater, concerts and art galleries. Upscale home and condo prices have skyrocketed in and around many of the nation’s predominant cities and associated suburban areas.
Locations that offer outstanding recreational opportunities in exquisite natural surroundings are another strong preference for luxury homebuyers. Beachfront and inland coastal properties in neighborhoods that offer breathtaking ocean views are in high demand. Second-home investments keep property values strong in upscale seaside resort areas.
The best locations offer the best real estate investment potential.