Who, in the world of luxury real estate, hasn’t been looking forward to the return of affluent spending? Experts predicted this day would arrive soon—just maybe not this soon.
According to a new online survey by the Harrison Group and American Express Publishing (via Robert Frank, author of The Wealth Report and Susan Kime at Luxist), more than 1,900 consumers with more than $100,000 of discretionary income (and a mean of $52,000), found that more than 50% are optimistic about their future. Fewer people said they feel guilty purchasing luxury goods (from 54% to 45% in past year) and more say they like it when others recognize them as being wealthy (up from 30% to 42% in past year). Harrison Group also estimates discretionary spending by the affluent and wealthy will rise by $56 billion in the next year, with $28 billion going to luxury, marking a 6% to 8% jump.
Who will reap the biggest benefits? Automotive, travel, and services, according to the report. That said, the new picture of affluent spending won’t look like the spending of years past. Still, Stan Tonkin, vice president of international marketing and sales for The Élan Collection, finds all of this news encouraging amid recent reports that fractional jet operators, private aviation companies and other luxury fractional clubs announced positive first-quarter results: “It shows that there is still a sizable appetite for luxury fractional vacation opportunities, especially a new generation of shared ownership properties like The Èlan Collection. We are redefining the luxury vacation experience by bringing the benefits of shared interest home ownership to the exclusive world of private residence clubs. We see it as a win-win for those travelers who still want their vacations, but don’t want to tie up all of their financial assets in one home.”
What’s the picture of luxury spending you’re seeing?
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