Real estate has always been the favored asset class of the ultra-wealthy. But at the very top of the market—the “Ultra-Prime” sector—the trends move differently than the general housing market. Whether it’s a penthouse in Manhattan, a chateau in France, or a cliffside estate in Bali, high-net-worth individuals (HNWIs) are constantly shifting their capital to follow lifestyle and security.
At Grey Gables, we track these trends to understand where the world’s most exclusive travelers are going.
The Shift to Space and Privacy Post-2020, the definition of luxury shifted. “Vertical living” (penthouses) lost some allure in favor of “Horizontal living” (estates). Buyers and renters want land. They want buffer zones. This has driven a massive boom in the market for private islands and large-scale compounds.
This aligns with what we see in the rental market. The demand for large-scale private villas is not just about capacity; it’s about the psychological comfort of having a private perimeter.
Wellness Real Estate The new amenity is health. Home gyms are standard; now, buyers want home spas, cryotherapy chambers, and circadian lighting systems. In the tropical market, this translates to yoga pavilions, organic gardens, and saltwater pools. A property is now seen as a tool for longevity.
The “Co-Ownership” Model We are also seeing a rise in fractional ownership of ultra-luxury assets. Platforms are allowing investors to own a “share” of a $20 million estate. This allows HNWIs to diversify their portfolio across multiple continents—owning 1/8th of a ski chalet in Aspen and 1/8th of a beach villa in Seminyak—rather than tying up capital in one asset.
Expert Analysis For those who follow the money, the Knight Frank Wealth Report is the bible of the industry. It tracks the movement of private capital into property markets globally. You can read their latest analysis on where the 1% are buying here.
Understanding these investment trends helps us identify the next hotspots for luxury travel. Where the money goes, the mansions follow.