Superluxury Soars

In Lafayette, California, this tranquil and private home sits on nearly three acres of land.

superluxury real estate is supercharged right now,

and shows no signs of slowing down. “It’s booming across the board,” said Christy Budnick, CEO of Berkshire Hathaway HomeServices. “I have never, ever seen superluxury this active before.”

The market is hotter than ever, partly spurred by the pandemic, which prompted high-end buyers to seek properties that can offer comfortable and luxurious living. In general, these properties can start between $10 million and $20 million, but they can also go much higher, depending on the market.

Candace Adams, CEO of Berkshire Hathaway HomeServices New England Properties, said Covid-19 has had an irrevocable impact on how buyers view superluxury properties, and what aspects they most value in these homes.

“People really decided they wanted to allocate their resources to housing, home and nesting, and making sure their families were secure,” she said.

“I think personally that consumer behavior and human behavior has changed since Covid-19,” she added. “And I think that you’re going to see people put their resources towards housing more than they ever had before.”

According to Martha Mosier, president of Berkshire Hathaway HomeServices California Properties, the superluxury boom is being driven in part by city residents seeking bigger properties than metropolises can provide.

“Many executives and business owners from larger cities [have] elected to migrate out of high-density areas,” Ms. Mosier said. “[They are] opting for a primary residence with more land and space, as they pivot to a ‘work from home’ or hybrid arrangement limiting their daily commute into the workplace.”

According to Ivan Sher, of Berkshire Hathaway HomeServices Nevada Properties, “quality” is the watchword at the forefront of buyers’ minds, not just for their immediate needs, but in terms of the long view as well.

What You Get for $40 Million-$50 Million

NEW YORK CITY GREENWICH, CONNECTICUT

$40,000,000 $41,500,000

5 Bedrooms 6.5 Bathrooms 7,488 Square Feet Condominium 6 Bedrooms 9 Bathrooms 12,972 Square Feet Single-Family Home

Waterfront Pool 2 Private Beaches MONTECITO, CALIFORNIA BOCA RATON, FLORIDA

$39,995,000 $40,000,000

7 Bedrooms 12 Bathrooms 11,547 Square Feet Single-Family Home 6 Bedrooms 7.2 Bathrooms 9,692 Square Feet Single-Family Home BIRD CAY & CAT CAY, BAHAMAS

$50,000,000

6 Bedrooms 6 Bathrooms 230 Acres Private Island

STAND OUT AMENITIES

Concierge Gym Outdoor Space

STAND OUT AMENITIES STAND OUT AMENITIES

Layered Gardens Persian Water Gardens

STAND OUT AMENITIES

Crestron Smart-Home System European Marble Kitchen

STAND OUT AMENITIES

4.75 Miles of Water Frontage Private Beaches

“People are looking for the best. There’s also a resale component in the purchase, too,” he said.

In terms of amenities, location still is the most important feature, but buyers are putting a premium on privacy and security as well.

“Security has become another interesting component of the search for superluxury,” Ms. Adams said. “People want a safe environment, whether it be a smart home that’s secure, or a gated entry, or community or association that provides controlled access.”

High-end buyers are also looking for their luxury residence to be multifunctional. Home offices are at the forefront of that multifunctionality. “They’re not considered just one-off spots when people sit when they get home from work. They’ve made it more functional and more appropriate for their environment,” Mr. Sher said, adding that Zoom calls now factor heavily into the look and design of these spaces.

Besides de rigueur amenities such as swimming pools, home gyms and home theaters—all of which continue to be in high demand—there are also requests for at-home spas, beauty salons, climate-controlled car showcases that can fit five or more cars, as well as properties that include expansive outdoor space, such as private beaches or golf courses.

In today’s world, the demand for superluxury properties isn’t just about upgrading into better homes, but also about sound investment for the future.

“We have examples of multiple offers with bidding $1 million over list,” Ms. Mosier said. “We have also had buyers purchase a home and then sell for a profit shortly thereafter.”

Superluxury Levels

A summer 2022 survey of Berkshire Hathaway HomeServices network members asked agents to define the top end of their markets. Most were in the $10 million-$20 million range.

How do you define superluxury in your market? What’s the minimum?

65% 13%

US$30M - US$40M

22%

US$20M - US$30M

US$10M - US$20M

Source: Berkshire Hathaway HomeServices 2022 Luxury Report Survey Results

A home office in this castle-like estate in Oak Brook, Illinois, offers ample space to get work done.

Berkshire Hathaway HomeServices Chicago “We have examples of multiple offers with bidding $1 million over list.”

MARTHA MOSIER

President Berkshire Hathaway HomeServices California Properties For example, one client bought property for $12 million and resold in six to eight weeks for $15.5 million, she said.

While square footage is a draw, it isn’t the only one. “Luxury is being defined more by quality, finishes, location, architecture and design, rather than the size of the home,” Mr. Sher said.

And no one expects the bubble to burst. Most superluxury buyers, for example, can withstand interest-rate hikes. Many can pay in cash. And even as the U.S. economy begins to feel the impact of rising inflation, superluxury buyers are often less impacted by ups and downs in the market.

“Because they’re cash buyers typically, they’re ready to act. I really don’t believe that some of the events that will impact other buyer segments are going to affect them,” Ms. Budnick said.