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How Much Could Your Dream Home Cost You?

BY ELM JOURNALISTS

MARCH/2025

Breaking Down the Costs

1. Location & Land
   The price of your dream home starts with its setting. A waterfront property in the Hamptons or a mountaintop retreat in the Swiss Alps costs significantly more per square foot than even the most opulent suburban mansion. Land costs in sought-after areas can start at £800 per square foot and easily climb into the tens of thousands.

2. Architecture & Design
   A bespoke home designed by world-renowned architects such as Zaha Hadid Architects or Tadao Ando can add millions to the budget. Custom features like floor-to-ceiling glass walls, infinity pools, or floating staircases require advanced engineering and meticulous craftsmanship. A truly one-of-a-kind residence often starts at £4 million in design and construction costs alone.

3. Luxury Amenities
   The modern dream home is more than just a residence—it’s a sanctuary. Smart-home automation, private spas, wine cellars, and home cinemas are now standard in high-end properties. For those wanting more, features like indoor waterfalls, car elevators, or even private IMAX theatres can add £400,000 to £4 million per feature.

4. Interior Design & Furnishings
   The world’s elite homeowners turn to designers such as Kelly Wearstler or Peter Marino to curate their interiors. Bespoke furniture, rare materials like Italian marble or exotic woods, and commissioned artwork elevate a home’s aesthetic. A fully designed, move-in-ready luxury home could add £1.5 million to £8 million in décor costs.

5. Maintenance & Staffing
   Owning a multi-million-pound estate requires upkeep. Full-time staff, including chefs, butlers, security, and housekeepers, can cost £400,000 to £1.5 million per year. High-end properties also demand ongoing landscaping, pool maintenance, and security systems, further increasing annual expenses.

1. Consider Emerging Luxury Markets

London, Monaco, and the Côte d’Azur may be the traditional epicentres of high-end real estate, but emerging luxury markets offer exceptional value. Locations such as Portugal’s Algarve, Greece’s Mykonos, or even parts of Dubai provide stunning waterfront properties at a fraction of the cost. For example, a £10 million townhouse in Mayfair could cost just £2 million to £3 million in Lisbon—with the added benefit of Portugal’s attractive Golden Visa programme.

2. Buy Off-Market or Pre-Construction

Many of the world’s most desirable homes never hit public listings. Off-market deals, often available through luxury estate agents and private networks, can offer significant discounts. Additionally, purchasing a high-end property in the early stages of development allows buyers to lock in lower prices before the value appreciates upon completion.

3. Renovate Instead of Building from Scratch

While designing a dream home from the ground up is an appealing prospect, acquiring a well-located but dated property and undergoing a luxury renovation can be a cost-effective alternative. Purchasing an older villa or estate and customising it to your exact tastes can save 10% to 30% compared to building a brand-new home in the same area.

4. Tax and Ownership Strategies

High-net-worth individuals often use strategic ownership structures to manage costs. In countries with high property taxes, purchasing through a company or trust may offer significant savings. For example, in the UK, certain ownership models can help mitigate Stamp Duty Land Tax (SDLT) on ultra-prime real estate. Consulting with a tax advisor before purchasing can lead to substantial financial benefits.

5. Opt for Smart Luxury Over Excessive Size

Bigger is not always better. Instead of investing in excessive square footage, many luxury homeowners are focusing on smart, high-quality spaces that enhance their lifestyle. Features like energy-efficient technology, sustainable materials, and modular designs can reduce long-term costs while maintaining an ultra-luxury feel.

Final Thought: Luxury at the Right Price

Your dream home doesn’t have to come with an unattainable price tag. With smart choices, strategic planning, and an eye for value, you can own an extraordinary residence without overpaying. Whether you opt for an off-market deal, a clever tax strategy, or a renovation project, luxury is about more than just cost—it’s about creating a home that perfectly suits your vision and lifestyle.