The Future of Ultra-Luxury Real Estate in Sandy Springs, GA

Named for the freshwater springs that encouraged the Creek Muskogee to settle in the area, Sandy Springs is both a suburb of Atlanta and a thriving city in its own right. Rejecting annexation multiple times, Sandy Springs finally incorporated in 2005 after decades of struggle.

Understanding the trends in ultra-luxury real estate can help you make a good choice as to whether to invest in high-end real estate in Sandy Springs or the Atlanta area in general. A luxury realtor can give you the pointers you need to start thinking about your new ultra-luxury home.

Sandy Springs has a solid inventory of homes in the $4 million to $10 million range, with only a few at a higher level. Because there are still some low-density parts of the city, it is more than possible to find large properties, but land values themselves are high, and undeveloped land is rare within the city.

Given the low inventory, one can expect an upward trend in prices at all levels of the market, including the higher end. There are relatively few condos in the area, again because of the low density. Most people seeking ultra-luxury condos are going to be looking more closely into Atlanta. However, as the city fills up with infill development, it is not unreasonable to think that luxury and ultra-luxury condo developments may start to show up, especially in the area around the downtown district of City Springs, which already has high-density residential developments. More are being built along Roswell Road, replacing old strip malls, but most of these are more affordable.

The price of land, however, makes it less likely that new ultra-luxury single-family homes will be built, except as teardowns. Existing inventory varies in age and style.

Trends in ultra-luxury real estate are affected by both national and local factors, which can work together to push prices up and down.

Atlanta has mostly recovered from the pandemic, especially in the area of employment. This pushes demand and, thus, prices up at the lower end of the market and in rentals, as well as through to the middle- and low-end luxury areas. This is an overall push on prices that will impact the top end. In Sandy Springs, low inventory impacts supply, pushing prices up further.

The combination of limited land and a strong feeling among local residents that density should not be increased, with powerful HOAs representing residents, means that the inventory in Sandy Springs is unlikely to increase at the higher end. The City Springs downtown area does have more new construction, but this is mostly apartments along Roswell Road.

Given the trends, it is possible that some of these may be higher-end condos, of which there is a shortage in the city. As the economy continues to recover from recent uncertainties, it's possible that prices will rise. However, there is still some volatility, mostly around the impact of climate issues on things such as insurability and utility costs.

A variety of societal trends are affecting real estate at all levels, including ultra-luxury real estate. Key among these are the demand for sustainability and the impact of remote work. While many companies are now recalling workers to the office, high-end workers often have more choices about when and whether to return and may be the ones making the decision. At the ultra-luxury real estate level, there is more of a demand for office space, as well as smart home technologies and wellness and health amenities.

Technological advancements are having an impact at two levels. The first is the smart home, with wealthy buyers demanding more amenities that range from being able to turn music on with their voice in any room to advanced security systems.

Sustainability technologies are also having an impact. Solar roofs, for example, are becoming more common as a way to maintain independence from the grid, especially in warmer climates such as Georgia. Higher efficiency in climate control and building to provide shade are also important. Traditional southern designs may become more popular, as they are good at keeping out heat.

Here are some trends impacting ultra-luxury real estate in Sandy Springs:

Younger wealthy individuals are even more likely to own multiple homes, whether to use or for investment. Given its proximity to Atlanta and amenities (such as some really excellent schools) that favor families, Sandy Springs is more likely to be a main base of operations than a location for a second or summer home. However, the desire for multiple homes favors slightly cheaper main homes, pushing the market into the $2 million to $4 million range.

More workers at all levels are still working remotely. Many companies have called people back to the office but more have settled on a hybrid schedule. For high-level executives working hybrid in Atlanta offices, Sandy Springs is a perfect location — the commute is still reasonable if you aren't doing it every day, and you get a great suburban location. This also means that the home office is an important feature. With larger homes, a small bedroom might be converted into an office, but people want more than just desk space. Good natural light is particularly important for the home office, and fast internet is no longer a luxury.

This is likely to push prices in Sandy Springs higher because of the desirable location.

The increase in environmental awareness in mainstream media is pushing everyone to think about sustainability. Located in the warm south, Sandy Springs provides an opportunity for wealthy homeowners to invest in solar power, and modern solar roofs don't change the character of older southern homes.

However, sustainability may favor new builds or teardowns over the older homes in neighborhoods such as High Point, potentially changing their character and decreasing their value. Some older homes may transition away from the ultra-luxury end of the market and become more affordable.

Overall, Sandy Springs has a tight footprint, which means there is little space for new builds. It also lacks high-end condominiums, although it's possible that might change. Its location near Atlanta means it may benefit from work-from-home trends, but older homes may drop in value due to sustainability concerns. The best investment is thus a relatively new home with efficient climate control and solar, or the possibility of installing solar.

If you are looking to buy an ultra-luxury home in Sandy Springs, then contact the Iannotti Breen Group. They can help you locate the home of your dreams, including homes that may not be openly listed yet, and find a house that is both a good investment and a great place to live.