Luxury Real Estate

By Carina de Sousa  of IRG International Realty Group

IRG International Realty Group: Trends in Luxury Real Estate Market

Faced with the current global economical stand-still there are many voices expressing concerns and opinions on the matter as well as doubts as to how and when this cycle will finally have its end.

However, this crisis that is having its repercussions in most areas of business has propelled many companies and/or private investors to look for ways to compensate losses by investing outside their usual areas of business, specifically into one that is apparently unaffected by this crisis: Luxury Real Estate.

The demand for luxury items and services still surpasses the offer but in Real Estate, the usual investors are attentive and on the look out for trends and signs that can justify action on their part. But it is this inflow of new potential buyers that will keep this market unaffected and maybe still have an influence on its growth.

As far as luxury residential tourism is concerned Portugal has excellent product on offer that is more than capable of competing with the traditional luxury real estate markets from southern Europe.

Top construction quality, architecture and prime, exclusive after sales services are determinant factors in these capitalists’ assessments of the deals, and the latter is the one that will destine 2nd buys and produce the kind of reputation that will generate the brokerages further income. Once these gain the insight into the power of client satisfaction, the industry in general will certainly reap the benefits as will the buyers in particular.

In difficult times such as these, investing in luxury real estate seems to be the safest bet that can be made.

What is new in home design, travel, fashion, dining and entertaining trends?

Both style and lifestyle trends will inevitably vary depending to each individual’s concept, target and location but in fashion and interior design for example are the finishes and materials that fall in and out of favor.

Especially in the current economically challenged times, clients’ favorability will almost always rely on durability and cost, not neglecting also the environmental factor. Even for clients in the luxury segment, whereas before an haute couture, top designer dress might only be worn once, today we see examples being set by some of the royal families in Europe where they have made the decision to boast the same piece in more than one occasion.

Looking at the lifestyle side of things, when it comes to dining out, in Portugal as in most southern European countries the trend is natural and the key word is without a doubt Organic. People look for the natural flavor of the ingredients and more than ever care about the origin of the same. Great consideration is given to the choice of restaurant before venturing out and people nowadays have a tendency to opt for Mediterranean style cuisine over the previously favored ethnic restaurants such as Indian, Chinese, Thai, etc., unless they have specifically heard a great revue on a particular one.

According to a study conducted by Deloitte, New Zealand is a travel destination that is becoming increasingly popular with the majority of its visitors originating from Australia, UK, USA and Japan. The same study also concluded that the demand for fashion hotels has also escalated mostly due to the scheduled openings of Versace, Armani, Missoni and Moschino hotels.

In Portugal, the Algarve is by far the destination of choice and with such great weather and luxury accommodation, those that previously would have chosen other exotic prime destinations, now see this region as a safer and cheaper option with the same and sometimes superior exclusive standards they would find anywhere else in the world. The islands of Madeira and Porto Santo are also among the favourites for exactly the same reasons.