What's Trending: Unicorn Properties

As interest rates and home prices have risen, so too have affluent homebuyers' standards. These buyers have become even more discerning in 2024, seeking only those properties that meet their exacting standards. This trend toward "have-it-all" properties persists, despite limited inventory in many markets.

According to the recent Coldwell Banker Global Luxury Mid-Year 2024 Report, over 44% of Coldwell Banker Global Luxury Property Specialists reported strong demand for properties that check all the boxes: well-priced, high-end homes that are impeccably presented. Many of these properties are new construction. Some are recently built in the last few years but are completely turnkey. Others offer curated lifestyle experiences or a deep roster of amenities that cater to buyers' sophisticated tastes. Some real estate professionals call these types of properties "unicorn" properties, considered to be extremely difficult to attain – and in some cases, unattainable – because the buyer's standards are set so high. The buyer is unwilling to settle for anything less than their perfect home, whether or not it exists.

The demand for unicorn properties has been a dominant luxury real estate trend for at least the last two years. This trend overlaps with our previously reported trend, "The Right Inventory," as new desirable inventory continues to drive sales and dictate the overall direction of the luxury home market.

Below, Luxury Property Specialists around the world share their insights on how the unicorn property trend is impacting their local markets. Here's what they had to say:

"With renovation costs continuing to rise and supply chain issues lingering post-pandemic, selling properties that require renovation or need repairs has become increasingly difficult — especially with an abundance of new, turnkey developments available to buyers. Renovating a large property to the highest standards requires countless decisions, making it feel like a full-time job or project – one that busy professionals often don’t have the time to manage. Further, ultra-luxury buyers typically want everything at their fingertips, and developers have responded by adding as many amenities and top-of-the-line features to their properties as possible. They strive to create “unicorn” properties that stand out, not only with unique designs and floorplans but also with exceptional materials and appliances. Discerning buyers in the ultra-luxury market are looking for properties that are distinct, and savvy developers build and market these one-of-a-kind homes to meet their expectations." - Steve Gottlieb, Coldwell Banker Warburg

"There is significant momentum in the ultra-luxury branded residences market, as these properties offer more than just high-end amenities they provide a prestigious lifestyle, top-tier services, and exceptional quality finishes. The appeal extends beyond the physical aspects of the home, with residences like the first-ever Mercedes-Benz Places, Bulgari, and other major hospitality and fashion brands, leading the trend." - Ayman Youssef, Coldwell Banker UAE 

"Many luxury buyers are turning to new construction or building custom for themselves due to lack of inventory." - Alecia Valencia, Coldwell Banker Gundaker, St. Louis, Missouri

"Amenities are critical as buyers suddenly have more options due to increased inventory. They no longer have to feel like they are settling." - Jason Brewer, Coldwell Banker Realty, Gahanna/New Albany, Ohio 

“In my market in San Miguel de Allende, we are seeing ‘have-it-all properties’ that are trading for the highest prices we have ever seen. These are turnkey luxury offerings that are tailored to deliver the San Miguel lifestyle immediately to their new owners. We are seeing younger buyers, are active in business, and do not have the time to do a project. A property in our area that checks all the boxes is a Spanish Colonial style, with modern kitchen and bathrooms, great indoor-outdoor living, views and with lots of character and centrally located.” - Daniel Ortiz, Coldwell Banker SMART, Mexico

"Buyers are looking to be 'wowed.' Staging and marketing will become more and more critical."- Vanessa Foster, Coldwell Banker Realty, Milton, Massachusetts

“In France and Paris, both trends [the right inventory and unicorn properties] exist in parallel and often overlap. We are also seeing a strong demand for these exceptional properties that offer everything buyers are looking for. Whether it's their prestigious location, historical charm, or modern amenities, these properties attract an increasing number of buyers in search of the perfect 'all-in-one.' However, a property that may seem 'imperfect' can also be unique due to its prime location, views of iconic monuments, and its French historical significance.” – Vanda Demeure, Coldwell Banker Europa Realty 

"Being in a second home luxury market, we are still seeing good activity. The buyers are a bit more particular and hope to find that unicorn, but they are still willing to sacrifice some things just to get into the market." - Lisa Morrison, Coldwell Banker Realty, Newport, Rhode Island 

This is just one of several trends highlighted in the Mid-Year 2024 Report. Read the full report here and stay tuned to discover them all.