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A growing number of high-net-worth individuals in the U.S. are considering luxury property as an investment option

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A new report finds that New York was the top performing city in terms of luxury real estate, defined as $1 million-plus homes, sales volume.

Basic Elements Photography / Getty Images
A new report finds that New York was the top performing city in terms of luxury real estate, defined as $1 million-plus homes, sales volume.
Basic Elements Photography / Getty Images

Luxury real estate, as an asset class, has an increasing appeal to affluent Americans. A new report from Coldwell Banker Previews International, surveying members of the America’s wealthiest 1.5%, finds that a growing number of high-net-worth individuals plan to make a property purchase this year, expressly for investment purposes. A 54% majority of HNWIs say that they anticipate making an investment in real estate this year, up from 48% who indicated interest in 2014. One-third (33%) of those planning an imminent purchase are doing so strictly for investment purposes, up from 21% who were motivated by investment appeal to make a purchase last year.

The report, which defines HNWIs as those with a net worth greater than $5 million, discovered that other top reasons for purchasing property this year included the stability of residential investment compared with the stock market and the appeal of low interest rates. However, the strongest motivating factor, cited by 40% of respondents intent on buying a home this year, was the attractive investment opportunity offered by luxury real estate. The full report, which features a breakdown of the top performing U.S. luxury markets, can be found here.