Luxury homes are once again on the latest trends in the real estate market as Los Angeles, New York and London report a prospering luxury housing market. Owners of a high end apartment complex in the city of Los Angeles are investing a fortune to make their best units additionally luxurious –which eventually will fetch them more rent. The monthly rents for such apartments clock in at approximately $5000 for a single bedroom unit to an excess of $7600 for a lavish three-bedroom house.
In some of the costly neighborhoods all located in the city, there are apartments which have started to resemble a cross between a five-star resort and a $1 million home. Close to 3rd street from the upscale Grove outdoor mall, landlord Amico is investing $15.7 million to transform 115 units of its Palazzo apartment complex located in the Fairfax district into a sprawling enclave known as The Penthouses at Palazzo. The demand for expensive and luxurious homes in LA is at an all time high now with The Penthouses at Palazzo being the most expensive at the moment.
Luxury Residential Property Market Report
According to the Luxury Residential Property Market Report released by Christies International Real Estate, London ranked the best city with respect to the growing number of luxury houses. The sale of a luxurious property in the city was done at $101.5 million. It also boasted of the highest sales average per square foot, which stood at $4683. The second and third spots were taken by New York and Los Angeles respectively with a huge growth in sales volume of luxury houses.
The survey took into account the top ten major markets in the world. These were Toronto, Sydney, San Francisco, Paris, New York, Miami, Los Angeles, London, Hong Kong and Cote d’Azur (not necessarily in the order). A comparison was done between these markets with respect to prices per square foot, sales price, percentage of buyers-international and non-local and the number of luxury houses per population.
Bonnie Stone Sellers, CEO of Christies International Real Estate, said that with the growing number of wealthy people across the globe, consumer confidence has started to increase as the sales of luxury real estate witnessed a surge in 2013. A robust momentum in the luxury housing market was headed by cities like Los Angeles, San Francisco, London and New York.
Luxury Spending growing gradually
Based on a report published by Spectrem for the year 2014, the total number of millionaires in the United States has touched 9 million. The number of households with net worth close to $25 million in the country is close to 132,000.
Hong Kong was ranked number 4 by Christie while creating its list of the most active markets in the world. The other markets with luxury properties besides the top ten which were examined for the survey by Christie included Monte Carlo, La Jolla, California, Sarasota and Monaco.
Some characteristics of luxurious homes in Los Angeles
Some of the features of luxurious homes in LA include the following:
- High-end appliances
- Premium hardwood flooring
- Big shower stalls capable of creating room for two with rain shower heads side-by-side
- An exclusive rooftop shared by residents with cabanas for socializing
- Access to spa and gym selling facials, massages and other kinds of beauty treatments which are usually offered at luxurious resorts.
- Presence of Sub-zero brand refrigerators along with six-burner Wolf stoves
- Maple cabinets
- Huge parking area
LA area to get more luxurious homes in the coming days
These luxurious apartments may be tiny in number but are steadily growing in Los Angeles. A new trend among developers in LA is to create opulent accommodations for few of the wealthy who prefer renting rather than owning. People testing the high-end of super deluxe apartments include Rick Caruso, shopping centre magnet and the CIM Group-the largest residential and retail landlord in LA.
The demand for high-end rentals is restricted but steadily growing, according to Shaul Kuba, principal at CIM Group. People are seeking for affordability while renting. However, there are some who want to experience that kind of living which does not involve a long-term commitment.
The other major advantage of luxurious homes in LA is the concierge or the security which is available round the clock. And, you do not have to think of parking in a crowded space since you can have access to a huge parking lot.
CIM plans to come up with some more luxurious apartments in downtown Los Angeles, Hollywood, West Hollywood and all other localities which have dining, shopping and other attractions close by.
Los Angeles has had a colorful history when it comes to luxurious apartments. Prosperous movie stars were the tenants of some elite residential properties which were constructed before the Second World War. These included the Ravenswood and El Royale in Larchmont and Los Altos and the Talmadge on Wilshire Boulevard.
Bidding Wars return for luxury homes in Los Angeles
A week after the listing of a five-bedroom house by Christie Lynch in the Brent neighborhood of Los Angeles for a staggering $3.625, she received seven offers. She struck the deal at $225,000 within days. Bidding wars for luxury homes in some posh enclaves like Bel Air, Beverly Hills and Brentwood are slowly breaking out.
The number of sold houses priced at approximately $2 million in Beverly Hills went up by 11% in Q1 2013 and stood at 39% as reported by Data Quick-a property information provider. The demand for luxurious properties is basically coming from investors wanting to make a profit, which was nonexistent a few years back, according to Joyce Rey, head of Coldwell Banker Previews International’s estates division. The percentage of individuals who are of the notion that prices of homes will go up is at its highest level, according to Syd Leibovitch, president of Rodeo Realty in Beverly Hills.
Los Angeles is the second largest city in the US and symbolizes the American dream. People flock to the place in search of fame, fortune and a carefree lifestyle. The luxury homes in Los Angeles are much like the residents of the city-an eclectic and interesting mix of style and personality. The dynamic mixture of luxury homes makes the city a special place to live your dream. The reality is that there are so many amazing buildings in Los Angeles with some great facilities and amenities that it’s almost impossible to stay away from them.