The most important criterion for younger (76%) and for older buyers (approximately 86%) of luxury residential property is the location. The price, however, plays a somewhat secondary role. This has resulted in a current survey in more than 200 Engel & Völkers residential property outlets in Germany. Property experts have given their assessment here as to which criteria their younger (up to the age of 45) and older customers (from the age of 45) are mindful of when looking to purchase a luxury property. “The survey results confirm the current market situation. Exclusive residential properties in Grade A locations have, in recent years, been so much in demand than ever before. These properties offer not only living quality, but also added value or appreciation potential”, says Kai Enders, board member of Engel & Völkers AG.
The main incentive to live in a top segment property, for younger (approximately 62%) and older buyers (approximately 56%), is finding a luxuriously equipped main residence. In addition, approximately 23% of property experts indicate that buyers of luxury properties, who are above the age of 45, are looking for this type of property as a second home. Buyers below the age of 45, however, only account for 7%. They purchase a luxury property for reasons of prestige (approximately 61%) rather than older buyers (approximately 39%). Reasons of retirement investment, on the other hand, play a greater role for older buyers (approximately 24%) than for younger buyers (approximately 12%). In the opinion of the respondents, older buyers (approximately 49%) place more value on the environment and the neighbourhood than younger buyers (approximately 25%). On the other hand, younger buyers consider the size and the floor plan to be of more importance.
A villa for the younger generation, a penthouse for the older generation
Differences between buyers of luxury properties below and above the age of 45 are shown both in the price and type of property. Therefore approximately 40% of property experts indicate that younger buyers pay between €750,000 and €1,000,000 for a luxury property. Also approximately 40% of those under the age of 45 quote “under €750,000″ as the purchase price. Older buyers spend, according to approximately 41% of the respondents, between €1,000,000 and €1,500,000 on average for a top-of-the-range property.
When asked what the dream property of younger and older buyers looks like, there are clear representations: younger customers are more looking for a detached house or a villa (approximately 59%), whereas older customers more a penthouse (52%). For younger buyers, the floor area should be between 200 and 300 square metres (approximately 49%), whereas for older buyers, however, between 100 and 200 square metres (approximately 75%). As for the ideal number of rooms, approximately 57% of the respondents have replied “5 to 6″ for younger buyers and approximately 67% “3 to 4″ for older buyers.
With a luxury property, both younger and older buyers alike place value on the building’s current energy efficiency, a spacious floor plan with high ceilings and large windows as well as open kitchens. For older buyers, barrier-free architecture also plays an important role.