Luxury Real Estate in 2024: Insights from BHS CEO Bess Freedman

The luxury real estate sector has witnessed a remarkable surge in recent years, propelled by economic growth, evolving lifestyles, and a global clientele with opulent aspirations. As the world reshapes itself, however, so too does the definition of luxury in real estate. It’s no longer confined to lavish mansions and sprawling estates; it encompasses architectural marvels, exclusive penthouses, and culturally infused residences.

To understand the current and future state of the luxury real estate market, we spoke to Bess Freedman, the CEO of Brown Harris Stevens, one of the largest and most successful privately held real estate companies in the US. Bess is not only a real estate leader, but also a champion of social change, philanthropy, and building a culture-first brokerage for agents, staff, and clients. Under her leadership, Brown Harris Stevens has grown into a powerhouse with 50+ offices and nearly 3,000 agents across New York, Connecticut, New Jersey, and Florida.

In this article, Bess shares her insights on the latest trends, challenges, and opportunities in the luxury real estate market in 2024. She also reveals her secrets to success, her vision for the future, and her advice for aspiring luxury real estate agents.

What are the main trends shaping the luxury real estate market in 2024?

According to Bess, the luxury real estate market in 2024 is driven by five main trends:

• The emergence of secondary markets: Bess says that more and more buyers are looking for properties in less crowded and more affordable locations, especially after the pandemic. “People are seeking more space, more privacy, and more nature. They are also looking for places that offer a better quality of life, lower taxes, and more opportunities. That’s why we are seeing a lot of interest in markets like Florida, Connecticut, New Jersey, and the Hamptons.”
• The rise of technology and innovation: Bess believes that technology and innovation are transforming the luxury real estate space, both in terms of property features and marketing strategies. “Technology is enabling us to create more customized and personalized experiences for our clients. We can use data-driven property management, artificial intelligence, and predictive analytics to optimize rents, maintenance schedules, and tenant satisfaction. We can also use augmented reality and virtual reality to enhance property viewing and visualization. Technology is also helping us to reach a wider and more diverse audience, through social media, digital platforms, and online events.”
• The demand for sustainability and wellness: Bess notes that sustainability and wellness are becoming more important for luxury buyers, who are looking for properties that are environmentally friendly and health-conscious. “Luxury buyers are more aware of the impact of their choices on the planet and on themselves. They want properties that are energy-efficient, water-efficient, and waste-efficient. They also want properties that are designed to promote physical, mental, and emotional well-being, with features like natural light, air quality, sound insulation, and green spaces.”
• The influence of art and culture: Bess observes that art and culture are playing a bigger role in the luxury real estate market, as buyers seek properties that reflect their identity and values. “Luxury buyers are looking for properties that have a story, a history, and a character. They want properties that showcase their taste, style, and personality. They also want properties that are connected to the local community, culture, and heritage. That’s why we are seeing more demand for properties that feature unique architecture, design, and artwork.”
• The diversification of luxury segments: Bess points out that the luxury real estate market is becoming more segmented and specialized, catering to different needs and preferences of different buyers. “Luxury is not a one-size-fits-all concept. It means different things to different people. Some buyers are looking for ultra-luxury properties that offer the ultimate in exclusivity, security, and service. Some buyers are looking for lifestyle properties that offer access to amenities, activities, and entertainment. Some buyers are looking for investment properties that offer high returns, appreciation, and tax benefits. We have to understand the needs and wants of each segment and tailor our offerings accordingly.”

What are the main challenges facing the luxury real estate market in 2024?

Bess acknowledges that the luxury real estate market in 2024 is not without its challenges, such as:

• The uncertainty of the economy and the pandemic: Bess admits that the economy and the pandemic are still major factors that affect the luxury real estate market, creating volatility and unpredictability. “The economy and the pandemic are intertwined, and they have a direct impact on the demand and supply of luxury properties. The economy affects the income, wealth, and confidence of luxury buyers, while the pandemic affects their mobility, safety, and lifestyle. We have to be prepared for any changes and fluctuations that may occur, and be flexible and adaptable to the market conditions.”
• The competition from other markets and sectors: Bess recognizes that the luxury real estate market in 2024 is facing more competition from other markets and sectors, both domestically and internationally. “The luxury real estate market is not isolated. It is influenced by and influences other markets and sectors, such as the stock market, the bond market, the cryptocurrency market, the art market, the hospitality sector, the retail sector, and the entertainment sector. We have to be aware of the trends and opportunities in these markets and sectors, and how they affect the preferences and behaviors of luxury buyers. We also have to be aware of the competition from other luxury real estate markets, both within the US and abroad, and how they attract and retain luxury buyers.”
• The regulation and taxation of the luxury real estate market: Bess warns that the luxury real estate market in 2024 is subject to more regulation and taxation, both at the federal and state levels. “The luxury real estate market is under more scrutiny and pressure from the government, especially in terms of regulation and taxation. The government is trying to address issues such as affordability, inequality, and transparency in the real estate sector, and this may affect the luxury real estate market in various ways. For example, the government may impose more restrictions on foreign buyers, more disclosure requirements on transactions, more taxes on property sales and ownership, and more incentives for affordable housing. We have to be aware of the laws and policies that affect the luxury real estate market, and how they impact our clients and our business.”

What are the main opportunities for the luxury real estate market in 2024?

Bess is optimistic that the luxury real estate market in 2024 has plenty of opportunities, such as:

• The expansion of the luxury buyer pool: Bess is confident that the luxury buyer pool is expanding, both in terms of size and diversity. “The luxury buyer pool is growing, as more people are able to afford and access luxury properties, thanks to the economic recovery, the low interest rates, the availability of financing, and the technological innovation. The luxury buyer pool is also diversifying, as more people from different backgrounds, demographics, and geographies are entering the luxury real estate market, thanks to the globalization, the migration, the remote work, and the cultural integration. We have to be ready to serve this expanding and diversifying luxury buyer pool, and understand their needs, wants, and expectations.”
• The differentiation of the luxury property portfolio: Bess is excited that the luxury property portfolio is differentiating, both in terms of type and location. “The luxury property portfolio is becoming more varied, as more types of properties are being considered as luxury, such as condos, townhouses, lofts, penthouses, and co-ops. The luxury property portfolio is also becoming more widespread, as more locations are being considered as luxury, such as secondary markets, suburban markets, rural markets, and emerging markets. We have to be ready to offer this differentiated luxury property portfolio, and showcase its features, benefits, and potential.”
• The innovation of the luxury service delivery: Bess is proud that the luxury service delivery is innovating, both in terms of quality and quantity. “The luxury service delivery is improving, as we are able to provide more quality and quantity of service to our clients, thanks to the technology, the data, the analytics, and the partnerships. We are able to provide more personalized and customized service, more timely and accurate information, more effective and efficient communication, and more value-added and complementary service. We have to be ready to deliver this innovative luxury service, and exceed the expectations of our clients.”

What are the secrets to success in the luxury real estate market in 2024?

Bess shares her secrets to success in the luxury real estate market in 2024, which are:

• Be professional: Bess emphasizes the importance of being professional in the luxury real estate market, which means being knowledgeable, ethical, and reliable. “Being professional is the foundation of success in the luxury real estate market. You have to be knowledgeable about the market, the properties, and the clients. You have to be ethical in your dealings, following the rules and regulations, and respecting the rights and interests of all parties. You have to be reliable in your service, delivering on your promises, and solving any problems. Being professional is what sets you apart from the competition and builds trust and loyalty with your clients.”

• Be passionate: Bess stresses the importance of being passionate in the luxury real estate market, which means being enthusiastic, curious, and creative. “Being passionate is what fuels your success in the luxury real estate market. You have to be enthusiastic about the market, the properties, and the clients. You have to be curious about the trends, the opportunities, and the challenges. You have to be creative in your marketing, your negotiation, and your problem-solving. Being passionate is what makes you stand out from the crowd and attracts and inspires your clients.”
• Be persistent: Bess advises the importance of being persistent in the luxury real estate market, which means being determined, resilient, and adaptable. “Being persistent is what sustains your success in the luxury real estate market. You have to be determined to achieve your goals, overcome your obstacles, and exceed your expectations. You have to be resilient to cope with the volatility, the uncertainty, and the pressure. You have to be adaptable to the changes, the fluctuations, and the demands. Being persistent is what keeps you going and growing in the luxury real estate market.”

What is your vision for the future of the luxury real estate market?

Bess shares her vision for the future of the luxury real estate market, which is:

• The luxury real estate market will be more dynamic and diverse: Bess predicts that the luxury real estate market will be more dynamic and diverse in the future, as more buyers and sellers enter the market, more types and locations of properties emerge, and more factors and forces influence the market. “The luxury real estate market will be more exciting and challenging in the future, as it will offer more options and opportunities, but also more competition and complexity. We have to be ready to embrace the changes and leverage the advantages that the luxury real estate market will bring.”
• The luxury real estate market will be more digital and data-driven: Bess foresees that the luxury real estate market will be more digital and data-driven in the future, as technology and innovation play a bigger role in the market, both in terms of property features and service delivery. “The luxury real estate market will be more efficient and effective in the future, as it will enable us to provide more quality and quantity of service, more timely and accurate information, and more personalized and customized experiences. We have to be ready to adopt and utilize the technology and data that the luxury real estate market will offer.”
• The luxury real estate market will be more sustainable and socially responsible: Bess envisions that the luxury real estate market will be more sustainable and socially responsible in the future, as sustainability and wellness become more important for buyers and sellers, and as the market contributes more to the society and the environment. “The luxury real estate market will be more rewarding and fulfilling in the future, as it will allow us to create more value and impact, both for ourselves and for others. We have to be ready to support and promote the sustainability and social responsibility that the luxury real estate market will demand.”

What is your advice for aspiring luxury real estate agents?

Bess offers her advice for aspiring luxury real estate agents, which is:

• Learn from the best: Bess suggests that aspiring luxury real estate agents should learn from the best in the industry, by seeking mentorship, guidance, and feedback from experienced and successful agents. “Learning from the best is the best way to learn the ropes, avoid the pitfalls, and accelerate your growth. You should find a mentor who can teach you the skills, the knowledge, and the mindset that you need to succeed in the luxury real estate market. You should also seek guidance and feedback from other agents who can share their insights, tips, and best practices with you.”
• Build your network: Bess recommends that aspiring luxury real estate agents should build their network, by connecting with potential and existing clients, partners, and peers in the industry. “Building your network is the best way to generate leads, referrals, and opportunities. You should connect with potential and existing clients, by providing value, service, and follow-up. You should also connect with partners and peers, by creating alliances, collaborations, and relationships.”
• Invest in yourself: Bess urges that aspiring luxury real estate agents should invest in themselves, by enhancing their education, skills, and personal brand. “Investing in yourself is the best way to increase your value, credibility, and visibility. You should enhance your education, by staying updated on the market trends, the property features, and the client needs. You should also enhance your skills, by improving your communication, negotiation, and problem-solving abilities. You should also enhance your personal brand, by showcasing your expertise, experience, and personality.”