"Price is what you ask for, value is what you offer", said Rockefeller. Michaël Zingraf Real Estate, a privileged player in the high-end real estate market, examined the essentials of the profession and what characterizes luxury real estate.
How is luxury real estate defined?
Around the stone, one constant remains: succeeding in transforming the ordinary into the extraordinary.
Before making the distinction between "traditional" real estate and prestige or even exceptional real estate, we must look at the intrinsic fundamentals of luxury as superlatives: rarity, excellence and desirability. The Larousse dictionary defines it as "the character of what is costly, refined, sumptuous". Behind this somewhat overused definition lies a reality: luxury is imagination and dreams. The investment is undoubtedly profitable in the long term, with demand remaining higher than supply, making it possible to stamp real estate as a luxury in its own right, with its own ecosystem, rules and codes. Decrypting
1- AT THE SERVICE OF EXCELLENCE
Time is a luxury that cannot be bought... When you want to buy a luxury property, it is essential to be accompanied. The art of service is undoubtedly the number one characteristic. The actors of the sector have perfectly integrated it with teams dedicated 24 hours a day, 7 days a week like a luxury concierge. This wealthy, elitist clientele is used to a certain lifestyle and is therefore particularly demanding. Also, the differentiating value is the variety of new products and services based on tailor-made services. As they are used to dealing with experts, clients are looking for outstanding professionals: from the very beginning of the project to the transaction, but also for personalized support and a relationship of trust, with discretion as a key issue.
2- THE NOTION OF THE RARE AND THE TYPE OF PROPERTY
Plundering the fundamentals of prestige real estate, the scarcity of the property creates its value. The subjectivity of each person will make it difficult to define a luxury property. Nevertheless, the typology and the quality of the property can make the balance of the price/product ratio. Castles, manors, mansions, luxury apartments, private mansions, villas or even contemporary houses and architects' houses, all of them must meet quality standards in an exceptional location. Moreover, an old apartment in the heart of the Jardin du Palais Royal in the 1st arrondissement of Paris will not have the same attributes as a modern apartment in the Parisian golden triangle. It is therefore the price, by its prohibitive and elitist character, that serves as a second filter.
3. LOCATION AND ENVIRONMENT
Another aspect of exceptional real estate is the location. The requirements of buyers vary as much as the location (in the heart of a city, in a dynamic sector, in a charming countryside, in a chic or historic district) and the environment (near the sea, on an island, in the mountains). Each year, numerous studies identify the most sought-after cities for investing in luxury real estate. The list of the most sought-after cities depends on several criteria: economic and cultural developments, security, the country's political and geopolitical situation, and environmental concerns. Lately, the health crisis has dethroned certain cities, long considered safe and attractive. Paris, London, New York, but also Dubai and Hong Kong, once leaders, are no longer at the top of the ranking. The 2021 edition includes Zurich, Copenhagen, Tokyo, Miami and Stockholm, which are sought after by wealthy families for their quality of life, desire for space, nature and security. However, the Côte d'Azur is still a safe haven.
The Michaël Zingraf Real Estate group has achieved record sales this year. Proof if it were needed that the French luxury real estate market has lost none of its superbness, as the Covid effect has shaken up the real estate market, putting the question of home back at the center of demands and concerns.