What comes to mind when you think of a garage? Usually, it’s somewhere practical and functional. However, when it comes to million-dollar homes, the garage is one of the most important buildings on the property. Many wealthy buyers opt for climate-controlled six-car garages, some of which have turntables to allow them to enjoy their vehicles as such. Today’s ultra-wealthy buyers aren’t just buying homes; they’re purchasing automotive havens that they can use to keep their personal collection of cars. Many of these garages are actually larger in terms of square footage than the main residence simply because owners have so many cars and they want to be able to drive them in and out.
The idea is to explore the mentality behind this type of real estate investment. We look at the ROI on large garages, how they elevate your lifestyle, and some of the design innovations that are now available from companies that offer to build these types of buildings.
The evolution from storage to statement
Garages became more popular during the 1950s as single-car ownership grew across the United States. Companies like Ford and Chrysler made it possible for people on average incomes to afford a vehicle, allowing them to get from A to B more conveniently than via existing methods like the bus or bicycle.
Almost everybody in suburbia had a demand for a garage, so housebuilders started to include them on properties. Most garages were actually integrated into the properties themselves, although a few were also separate to keep costs down.
During the remainder of the 20th century, the garage became a staple of post-war construction. More properties than ever before had garages, and it became something that owners expected. However, it was only really after the year 2000 that grand garages became more of a common trait. This coincided with the growth of the millionaire and billionaire class who saw garages more like art galleries.
After 2020, garages will become more like villas. Essentially, they were homes for their owner’s precious vehicles, including vintage Ferraris and Aston Martins. Interestingly, the proof is in the pudding in wealthy areas like Beverly Hills, Dubai, and Aspen. Most properties have large garage arrangements with sophisticated systems that owners can use to access their vehicles. Numerous car collectors also live in these areas, meaning that the demand for garage construction services is higher than ever.
Signature features of a true luxury garage
Luxury garages have various signature features that differentiate them from conventional garages. During the 1950s, most garages were simply cheap concrete structures with a metal door at the front. Most didn’t have any electricity lines or plumbing in them, meaning that their utility was limited. This improved over time as owners realized that they could use their garages more flexibly, but the fundamental arrangement didn’t really change. When luxury garages came along, primarily after the year 2000, they brought a sense of architectural drama to the scene. Many had floating staircases, LED-lit epoxy floors, and integrated art lighting. The most impressive garages had tempered glass walls which allowed owners to see all of their vehicles from a single vantage point without having to go into separate areas. Glass walls also separated the garage showroom area from the rest of the home while allowing vehicles to remain visible.
Another key feature of luxury garages is advanced climate protection technology. Older vehicles need to be kept at specific humidities and temperatures to avoid degradation of oil and rubber that they contain. These components can be difficult to replace, so luxury buyers often want a specific humidity and temperature level to remain constant throughout the year, despite what might happen regarding the weather outside. At the same time, they are considering organic protection from moulds and mildew that may enter the garage and also UV protection to prevent degradation of exterior paint and other components.
Lifestyle integration is also being considered in many of these luxury garages. Some millionaire and billionaire owners include turntables in garages to allow them to access vehicles from a single location. These systems are becoming more sophisticated as designers improve them over time. Some turntables even have conveyor systems that allow owners to order vehicles specifically from subterranean parking lots without having to use a valet or to drive them themselves.
At the same time, garages are becoming more lifestyle-focused. For example, many wealthy owners include wine cellars, golf simulators, and lounge seating in their garages. These are handy when they have friends over to enjoy the vehicles or when they want to relax in the garage environment after getting home from a long tour.
Of course, all of this is being done inside the development of smart home technology. The most luxurious garages have voice control, lighting and app-based charging for electric vehicles. They also integrate with the rest of the home’s automation, allowing owners to send instructions wherever they happen to be. For example, they might want an electric vehicle to start up or warm up the battery before they go downstairs.
Then there is the space in front of the garage. This is another consideration that wealthy people like to make when designing their ideal pad. Many areas in front of garages have special mosaic brick work on the floor or even worked stone to improve aesthetics and make the driving experience feel premium right from the front door.
Finally, there is the sustainability element. While owning a lot of vehicles is seen as something which is bad for the environment, many wealthy people want to use things like integrated solar roofing for EV-ready charging. These little touches don’t cost much for somebody who has a lot of money, but can make their home feel more green and eco-friendly.
How luxury garages make sense in terms of real estate math
Luxury garages might seem like a super frivolous way to spend money, but the reality is quite surprising. According to data, properties with luxury garages are valued 8 to 15 percent higher than equivalent listings. This means that on a $2 million property, the addition of a luxury garage might add between $100,000 and $300,000.
The reason for this is believed to be because of the speed-to-sale advantage. Luxury garages serve as an emotional buyer trigger for new buyers, especially those who are interested in cars. Often they’re willing to pay a premium for a property if they know that it has the facilities they need to take care of their collection. Even if building a garage after they buy and move in would be more economical, that’s not how their decision-making works. Instead, they think about the ways in which the property suits them right now.
This strategy is particularly effective in locations where large garages are a real need and space is limited. For example, buyers of Miami waterfront estates will often purchase apartments and properties for $5 million or more. However, the space available for vehicles is usually quite low and restricted to the building. With that said, there are some developments that offer subterranean parking turntables and even car lifts to deliver vehicles to ground level from apartments. In Silicon Valley, it’s a similar setup. However, most larger car parks are subterranean, housing up to 10 vehicles in climate-controlled environments.
Of course, future-proofing is an ever-present consideration. Car enthusiasts and drivers want to know that garages are kitted out with EV charging, even if they prefer ICE vehicles today. Autonomous vehicle readiness is also a consideration. Companies like Tesla have offered services like Summon since 2013. But this is likely to become a more standard feature across vehicle manufacturers in the future. Garages need to accommodate this new reality.
Design and renovation playbook
The question for many luxury property owners today is how to design and renovate garages to turn them into a luxury asset. Right now, you’re looking at spending around $50,000 for a refresh and over $500,000 for a full transformation on a luxury property. While this might sound like a lot of money, garages are one of the top three upgrades that deliver the highest return on investment. The property owners in the U.S. simply replacing the garage door can more than compensate for the price of the unit, so it’s well worth doing if you have the chance.
Of course, while you’re doing this, don’t sacrifice on living space. The people who want to own a home with a luxury car garage also want plenty of square footage to enjoy their lifestyle.
Also, don’t ignore drainage. Make sure that the garage has proper drainage around its outskirts, especially if it’s on a slope or in an area where water cooling is likely.
Finally, don’t neglect lighting. Lighting is important for wealthy owners because it allows them to show off their vehicles. If they can’t see how good their cars look, that can detract from their enjoyment.
If all of this sounds complicated, there are plenty of garage architects around. This is a niche specialty right now, but working with one of these professionals can be helpful.
