Luxury Real Estate

By Renaud Rippert

Before the current season began, there was some concern as to how the real-estate market in Saint Barts would fare, given the number of uncertainties which presently affect global markets.

This concern is clearly justified by factors such as the sub-prime financial crisis, the weakness of the U.S. dollar in comparison to the Euro, and the economic hardship felt in parts of Europe and, most notably, across the United States.

In reality, for Saint Barts, the analysis is very positive.

The island’s position as a particularly unique market has only been reaffirmed. It remains limited in size and thus in development opportunities and its patrons have proven to be less affected by the factors cited above.

North American clients, who continue to show emotional attachment to the island and who find themselves so conveniently located geographically, are able to invest in a strong and secure market and to diversify their investments in a dominant currency.

Europeans, who are less troubled by our currency, are more and more present in our high-end market, which remains reasonable in comparison to other affluent markets, where such clients are frequent investors, as well.

This being said, one can safely affirm that our market is experiencing neither a rise nor a fall, but rather a consolidation of justified pricing. Because, on the contrary, the overestimation of certain properties, which has been observed in the past two years, no longer allows for finding a buyer. Regarding the high-end spectrum of the market, there is considerable demand for such products, with significant prices being offered on exceptional properties. In this respect, the situation in Saint Barts is comparable to those markets that attract a similar clientele, such as The Hamptons, Aspen and the more desirable neighborhoods of London.

As an agency historically and intimately linked to the creation and development of the real-estate market in Saint Barts, Sibarth Real Estate has consistently positioned itself as a “market regulator,” advocating the preservation of the market’s stability over time. We have never participated in the thoughtless inflation of prices or sought to simply market the “Saint-Barth Effect.” It is our mission to sell properties in Saint Barts for their intrinsic quality, and certainly not to sell them to the detriment of the island, capitalizing solely on its popularity, with no respect for appropriate counter values. Our conservative appraisals support a long-term vision, anticipating the present consolidation of our market.


Editor’s Note:
Renaud Rippert is a real-estate agent with Sibarth Real Estate, a LuxuryRealEstate.com member in Saint Barthélemy, Guadeloupe. This is absolutely wonderful. It is so nice to hear from decent, respectful people who will stand up for good and not sell themselves short for a quick sale. Good work being such a responsible brokerage, Sibarth Real Estate. You set a great example for others to follow and I applaud your efforts.

By Jean-Yves Piton

With a devalued U.S. dollar against many other foreign currencies (i.e. Euro, Pound Sterling, etc.), now is the best time to invest in luxury real estate in the United States.

Whether this initiative is part of your diversification strategy or not, your property investment(s) in the United States will pay off in both the short and long term. Namely, your purchasing power is greater today in the United States and your ability to create greater returns in the future is increased tremendously.

To further exemplify present investment trends, I recently came across the following article “U.S. Real Estate Tops Foreign Investors’ List, Interest in Asia Grows” posted in the July 7, 2008 issue of www.Bostonsf.com.

The commentary reveals that, based on the results of the recent 16th Annual AFIRE Foreign Investment Survey, the U.S. real-estate market is at the top of global investors’ list.

Furthermore, “with 56% of the votes, the U.S. again emerged as the most stable and secure country for real-estate investment. No other country has ever come close to this number-one position. The second-ranking country has historically been the U.K., but this year Germany, with 10.5% of the votes, took that honor; Australia and the U.K., with nearly 9% of the votes, tied for third place.”

Agreeably, “this year, New York City and Washington, D.C. were named foreign investors’ top global cities. New York City leaped ahead by a substantial margin to be named the top global city, followed by Washington, D.C. and London in a tie for second place. Last year, New York City was ranked second globally and Washington was ranked fourth. Paris fell from second to fourth rank.”

Directly involved with global real estate on a day-to-day basis, I find such figures and trend eye-opening.


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. There are some wonderful opportunities available for U.S. buyers and sellers. One person’s downturn is another person’s bargain, so be sure to look for the good out there. The photo of the U.S. flag is from www.flickr.com/photos/tomsaint/2525886032 and it is the copyright of tomsaint11.