Luxury Real Estate

Frederick Peters of Warburg Realty

I assured my daughter that she and her husband would not have much trouble finding a good place to buy at a good price when they moved to London last month. London, I figured, was like New York: beginning to rebound but still basically a buyer’s market. I was wrong. The flat she found, in a great area between the two big parks in Battersea, seems to be the hottest ticket in town. Everything she has seen and liked has already sold, but this one has six offers in the eight days since it has been on the market and is now going to sealed bids.

So I wondered, am I misperceiving my own market as well? Is it even more active than I believed? Maybe so. The evidence is quite solid that when properties are well priced and well located, they are receiving a lot of interest. And a number of bids. And sometimes higher bids after an offer is accepted.

Now all this interest is dependent on one thing: price. The most desirable property, in the most desirable location, will still not sell if it isn’t priced right. But if it IS priced right, it can move fast. A lot of buyers have moved back into the market who want to take advantage of lower prices and low interest rates. Hence eight buyers for the well located flat in Battersea, or on West End, or in the West Village. Apparently it’s an international phenomenon.

By Carl Peralta of 77 Great Estates

The real estate opportunities in Malta was a breath of fresh air to most of the London based estate agencies.

Following last October’s visit whereby Dr Carl Peralta of 77 Great Estates introduced our real estate services to various firms in London, amongst which Chesterton, The Guild of Professional Estate Agents + Fine & Country, Quintessentially Estates and Strategic Development Capital Partners Ltd, this month, Dr Peralta re-visited some of our contacts followed by baron estates, Bective Leslie Marsh, Carter Jonas, Jackson-Stops, Lurot Brand, Marylebone High, Mayfair office, sandfords, savills, Liquid Financial Management Ltd and Wigmore Estates.

Moreover, 77 Great Estates entered into a trade agreement with Baydom Hill plc in order to offer our clients corporate services, private client foreign exchange, international mortgages, insurance and international regular payments. This will strengthen our one stop shop concierge service headed by Mrs Julienne Borg.

Once in London, we could not miss out on eating at Cipriani, Signor Sassi and Galvin. We look forward to our follow-up meetings to be held towards the end of this year. In the meantime, we will be visiting Eastern Europe; bookmark our blog to keep you posted!

By Jim Walberg of Caribbean Islands Realty

I was invited to speak at the Luxury Real Estate International Conference in Paris this month. London was my first stop.

We are spoiled with 85F degree weather in the Caribbean almost 365 days a year! Europe in January is COLD. The Who’s Who In Luxury Real Estate’s 4^th Annual International Conference was this month in Paris, and I was invited to be one of the presenters. Before the conference I traveled to London for a few days visiting one of the ten families that make up my “European family”. It is amazing to step into the pace of Europe with London as the first stop. It is one fast paced city!

My time in London was generally walking this beautiful city - from Buckingham Palace and Hyde Park, to the museums and art galleries. Another reason why I was in London was to meet with one of the partners of Deloitte - an international consulting firm for the top corporations of the world. My friend is in charge of their international real estate division. My meeting was to gather information regarding his view of what is predicted for Caribbean real estate markets in the midst of the global financial meltdown. It was a very insightful hour with him.

What we are seeing the past six months in Caribbean real estate sales is an abrupt slow down in sales that require a mortgage. And, the European buyers have almost disappeared. If you recall the Russians started showing up last year in the Caribbean and they are no longer visible. The real estate product that is predicted to thrive is the Fractional Deeded Ownerships, and the Residence Club products. The HOT market is expected to continue in the Dominican Republic. It was very useful to have this conversation given that we have already noticed these trends.

No matter what the economic conditions in the world we will still figure out a way to make lemonade out of lemons regarding real estate sales. Until my next report…fair winds.

By Jean-Yves Piton

While luxury properties are part of the conspicuous consumption group, unlike several other goods, their proposed premium prices are not a function of the premium brands they are attached to. Instead, factors such as location, amenities, space, architecture and historical value justify their premium prices around the world.

So, what type of luxury homes would you acquire in major metropolitan cites worldwide for $1 million USD in 2008?

According to “What $1 Million Buys in Homes Worldwide” by Matt Woosley, Friday, January 11, 2008, provided by Forbes.com, in New York, you can expect a 647-square-foot Turtle Bay condo with 45-square-foot balcony, white oak floors, and 11-and-a-half-foot ceilings. In London, you can purchase a one-bedroom, one-bathroom flat in Primrose Gardens. In Hong Kong, you can acquire a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.

While $1 million USD grants an invitation to the millionaire's club, it clearly does not buy the most spacious and astonishing luxury property in most top metropolitan cities worldwide in 2008. Based on the figures discussed earlier, such properties might just work as a pied-a-terre during a business trip or a short vacation.



This also explains why more buyers are currently opting for luxury fractional ownership, the trend ahead. This being said, keep in mind that this rapidly increasing trend applies to everything luxury in 2008 (from designer handbags to the finest properties).

So, how do you market a luxury fractional property? Evidently, it is easy to assume the same way you would promote a luxurious property. Partly due to the traditional premium variables like location, amenities, space, architecture and historical value. Also, though a fractional ownership, you could insist on the long-term investment, just as for any other luxurious property.

Nevertheless, there is another element, which must not be omitted to successfully advertise a luxury fractional property. That is promoting the dream to potential buyers and investors. There must be a fine balance of both emotional and rational communications to connect potential buyers to the properties through careful advertising. Where the rational communication focuses on owning a luxurious property (one of a kind), promoting the dream (the emotional communication) helps foster a sense of emotional connection (a state of being and/or sense of being).


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. Fractional ownership is a great tool for vacationers and other people looking for flexibility and great investment opportunities. I actually wrote an editorial on Private Residence Clubs, also known as fractionals, in the spring 2008 issue of LuxuryRealEstate.com Magazine. Check it out! The photos of the front and back of the “$1 million” bill are the copyright of Simon Davison.