LUXURY RESORT REAL ESTATE BUYER PROFILE

"Analysts of property developer FIVE conducted a study of the luxury resort real estate buyer profile. As of the beginning of 2023, the major category of purchasers (60%) consists of wealthy married men at the age from 40 to 60 years old; 34% of them live in Moscow.

Apart from Moscow residents, high-end resort real estate is purchased by inhabitants of Novosibirsk (29%), Sochi (13%), and other regions, the proportion of which is, however, small.

Luxury housing is mainly purchased by professionally accomplished married men at the age from 40 to 60 years old. Most of them (86%) have children. The analysis conducted throughout 2022 revealed an increase in the proportion of family buyers. If at the beginning of the year married buyers accounted for 50% of the customers, by the end of the year their proportion reached 76%.

Family, health, and welfare are priority values of luxury real estate buyers in Russia. They do sports and lead a healthy lifestyle, travel a lot, and spend their free time with the family. They are often referred to as high-net-worth or ultra-high-net-worth individuals, that is, people with a high level of income that generally exceeds 3 million rubles a month. Almost half of these individuals make their money in the fields of construction, real estate, and restaurant business. Representatives of the IT industry and the oil and gas industry are also interested in high-end housing.

Real estate properties that differ as to their dimensions and characteristics attract different customers. When shaping a proposal, the interests of three main groups of resort real estate customers are taken into account: young married couples, older accomplished people, and successful, wealthy young people.

The beginning of 2023 shows the growing popularity of medium-sized apartments; they are chosen first of all by married couples at the age from 35 to 50 years old who live in the capital and in the regions. There are businessmen and people of independent means among buyers. With an income of 40 million rubles a year or more, representatives of this layer of society are mostly guided by the need for family vacations at sea and for high-profile investments when buying real estate. The purchase budget starts at 200 million rubles.

The second important part of luxury resort real estate buyers is represented by wealthy people over 60 years of age. Representatives of this group not only are interested in assets for fruitful investment, but also don’t mind moving to the respectable southern part of the country for permanent residence. Often this is the case with owners of large companies. Such clients prefer spacious apartments with an area of 150 sq. m. or more, penthouses, and villas.

According to real estate market analysts, members of generation X and millennials constitute a particular group on the real estate market. There are not many buyers under 30 years old in MANTERA Seaview residence, about 2%, but at the same time people at the age from 31 to 40 years old account for 26% of purchasers. They are either single or married, represent large Russian metropolitan areas and have a steady income of 18 million rubles a year or more. Digital professions, work in IT industries, and entrepreneurship give young people the possibility not to be attached to a certain place of residence. They care about special services for members of their families and their own comport. These people set high requirements to holidays, flight classes, and housing. Most often, they buy studio apartments with an area of about 50 sq. m. consisting of an open-plan living room with a kitchen area, a big walk-in closet, and a bathroom. For example, prices for such apartments in MANTERA Seaview residence begin at 175 million rubles.

Many of these young people have only recently discovered the numerous opportunities offered by Sochi and the Krasnaya Polyana resort. Excellent infrastructure and services are in line with what is offered in Europe. Buying expensive real estate in the region adds to their high profile and, in a certain way, helps them to keep up with trends. Possessing a comfortable property for holidays is a perfect investment."