Luxury is what many people want when it comes to living – but realistically, how many of us can afford it? It’s really rare to find someone building their house from the ground up.
You might think it’s only for the ultra-wealthy, and you would be right…sort of. It’s not necessarily for the ultra-wealthy; it’s that they’re the only ones doing it.
Yes, it’s expensive for people to build a home, but do you know how much it would cost? Statistics vary, stating that it would cost anywhere between £187,000 to £281,000 to build a home in the UK. Other statistics say it would cost, on average, £2,200+ per m².
That’s cheaper than buying a newly constructed home. So, why aren’t people doing it? Read on to find out.
Limited Land Availability
It’s worth mentioning that a shortage of land suitable for development is the main substantial factor limiting the number of new-build luxury homes available. Yes, it might cost an average of £2,000 per m², but that’s for the build.
The average price of purchasing a plot of land in the UK is £100,000 and £299,000. People can’t be bothered with finding a plot of land in their local area, applying to buy it and then applying to build on it.
The process is longer than you can imagine. We’d say finding the ideal location for a luxury home, like a beachfront property or a piece of land in an upscale area, happens extremely rarely.
It should be noted that these areas are generally crowded already, and purchasing land in such places is tricky and costly. The big construction companies already have dibs in those areas.
Complexities in Quality Materials and Craftsmanship
A high-quality home goes beyond its dimensions or looks – it depends on the materials used and how they were set up by skilled workers who knew what they were doing.
Developing high-end structures demands having access to the finest materials from a quality builders merchant, and talented craftsmen who can carry out complicated designs and finishes. These premium materials and specialised skills are not well-known – most standard new build houses in the UK use the cheapest materials.
Sometimes, it’s difficult to find specific types of marble, for example, or custom fixtures for luxury home construction, which is time-consuming and costly.
Even more so, the top-notch professionals who can work with them to meet the standards required in luxury houses waned over time. Ultimately, such scarcity often leads to longer durations of the building process and increased costs associated with new developments.
Economic Uncertainty and Market Demand
The rarity of newly built luxury homes is also influenced by economics and market demand factors. During economic instability, fewer people are willing to invest in high-end real estate projects. The luxury housing market can be volatile, and potential buyers might prefer to invest in more stable assets.
The demand for newly built luxurious homes is low compared to other housing sectors in general.
Many wealthy customers would prefer to buy old, well-maintained homes within historical districts because they have some charm and prestige associated with them. They definitely sell for a lot more money. Lower demand means developers see little value in developing this type of housing.
The scarcity of new luxury homes isn’t uncommon. You’ll often find pockets of luxury developments and areas – but there’s no one rushing to build more.
Even though a custom-made luxury home is easily attractive to many people’s eyes, its practical issues and financial implications mean it isn’t something people rush to do. Still, it’s a nice thought to dream of building your own luxury home.
