Demand for luxury real estate is growing in emerging markets across Africa and Asia—including countries such as Nigeria, where high net worth individuals see purchasing luxury homes as good investment. Whether it is the location, the price, or the amenities on offer — every luxury property has characteristics that makes it appealing to a buyer. Modern families also wish to live in secure, upscale, amenity-rich neighborhoods that meet their needs. Buying a luxury home may be an investment into your future, but before you sign on the dotted line, it’s important that you know exactly what you’re getting into. This blog post provides a guide to buying luxury homes including the features of a luxury home.
What is a luxury home?
Luxury real estate refers to the class of properties in the market with high price tags and extensive, class-leading amenities. Luxury property is often synonymous with penthouses and villas on waterfronts or top floor condos with views of iconic landmarks as well as other luxurious features.
In a report by Knight Frank, Singapore emerged as the most expensive city to buy a house in 2016. According to the report, Singapore tops the chart due to its high property prices, income levels, and luxury goods tax.
Countries like Nigeria have experienced a boost in luxury property demand in recent years due to growing wealth and high levels of investment from domestic and foreign sources. Interestingly, both emerging and developed markets are experiencing surging demand for luxury real estate.
Features of a Luxury Home
What constitutes a luxury home has changed over time, but the term is generally used to describe a residence offering features and amenities that go beyond those found in standard housing. Also, people have different definitions of luxury, but there are common features in luxury homes, such as:
High-quality interior finishing
Smart home technology
Outdoor living space
Plush, Hotel-Quality Bedrooms
Tips for Buying Luxury Homes in Nigeria
- Work with a reputable and experienced real estate agent.
Working with a real estate agent experienced with high-end property can save you time and money, as they are able to guide you through the buying process, identify potential pitfalls, and negotiate on your behalf.
- Choose the right location
Location is a crucial factor in determining the long-term value of a home, due to its relationship with future developments and businesses in the area. The ideal location for luxury homes will have access to necessary facilities and amenities like highways, freeways, schools, restaurants, and malls. These factors have a significant impact on the price of the property and determine the eventual resale value.
- Have a luxury home checklist
As previously mentioned, there are a number of perks and amenities one can expect to find in a luxury home. Some may be more important than others,
As you start your search for a luxury home, be sure to make a list of your most important must-have features. This will keep you focused during your search and help your real estate agent quickly find something that suits your family’s needs.
- Do not rely solely on digital photographs and videos
Homebuyers should view properties in person, rather than depending on photographs, videos, and brochures. Such materials can be enhanced by modern photo editing software, creating an unrealistic depiction of the home. It is also possible for a home to look better in real life than it does in pictures.
- Hire a professional home inspector
It is important to consider a home’s physical infrastructure and foundation before buying. A professional home inspector will help you avoid these pitfalls by providing a comprehensive report of any problems with the main structural and mechanical systems of a house, including: the roof, plumbing, electrical wiring, central heating, ventilation and air conditioning (HVAC), walls and floors, windows and doors.
- Engage an experienced financial advisor
Because a new luxury home can be a considerable investment, you should carefully consider what you can afford. Your financial advisor can help you define a budget based on your desired features, as well as any other considerations that affect the cost of your purchase like taxes and mortgage financing.
- Think of the future
In case you might want to sell your property in the nearest future, it is prudent to buy one that has strong resale value. For example, a home in a neighborhood with rising demand will be worth much more than one in a neighborhood with declining demand.
- Patience is key
Purchasing a luxury property is not an overnight process. It takes time to find the right home. Patience is key because, in the end, you will be rewarded with a satisfying and rewarding purchase.
Purchasing a luxury home is not just about the purchase of an asset, it is essentially an investment in your future. The Lagos home market remains very active and prices are still going up. If you’re planning on buying for investment purposes, this is one of the best market conditions that has been in place for a long time to invest in Lagos.
If you were still debating whether now is the right time to buy, you should probably stop because the tide is turning and prices are going up quickly.
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