Luxury property continued to rise last year
The past year has been fruitful for sellers in the most expensive real estate market. New price records were set, the geography of sales in the Luxury sector expanded. At the same time, the pattern remains valid: the more expensive a luxury property, the more it rises in price. Expensive real estate remains one of the most effective investment tools.
The real Mecca for wealthy home buyers remains London. Interest in it is shown by millionaires from around the world. Kazakh businessman Khorelma Peramam purchased Toprak Mansion in the north of the city for 50 million euros. The house was built in neoclassical style by the Turkish banker Halis Toprak. However, his bank was nationalized by the Turkish government, and Toprak sold the mansion. The new owner plans to spend another 30 million euros on the construction of a spa, helipad and squash court, as well as change the name of the house to “Royal Mansion”.
The third cost transaction was made with the historic Park Place Castle, located in the vicinity of the British capital. The owners of the 27-room estate with secret underground passages, two private golf courts, a park and a section of the Thames coast were once Lord Archibald Hamilton, Prince of Wales Frederick, son and heir of George II, and George III. The name of the new owner of the royal real estate is kept secret.
Another mansion located in the London area of Hampstead was acquired by Israeli businessman Lev Leviev. The house has seven bedrooms, a gym, a cinema, a hairdresser, a sauna and a gold-plated indoor pool, as well as a bulletproof front door worth $ 100,000, a stone staircase worth $ 1.5 million and a bathtub carved from a single piece of Iranian onyx. The house was purchased for 35 million euros.
In the segment of expensive real estate in Britain, foreigners are gradually crowding out the country’s indigenous people. According to Knight Frank, 75% of transactions are made by foreigners in the segment of housing worth more than 5 million euros. Moreover, businessmen from developing countries dominate the market: Russia, China, and India. More than 21% of buyers of expensive London real estate are Russians. “As a rule, after buying an apartment in the center of Moscow and giving a cottage on Rublevka, Russians acquire real estate in London or its environs,” says Ekaterina Thein, director of elite residential real estate department at Knight Frank.
In addition to London, one of the most expensive places is the French Riviera, chosen by millionaires more than a hundred years ago. It is difficult to name dynamic trends in the real estate sector, billionaires are surprisingly conservative. “The interests of millionaires will continue to focus on the most prestigious areas of the world,” says Penny Lane Realty CEO George Dzagurov. “At the same time, both demand and the cost of just such corners will grow or, with a general reduction in prices, remain unchanged.”
Small trends in the geography of residence can be traced in this category. About 20 years ago, real estate in Spain began to be popular with millionaires. Moreover, according to the director general of the National Realtor Group Arkady Litovsky, if at first the main demand fell on Costa Brava, now interest has shifted to the resorts Punto Bano, Marbella, Costa del Sol. “Also, buyers of the elite real estate segment are showing more and more interest in properties located in Switzerland, Austria and the Czech Republic,” continues Lithuanian. “Perhaps, given the development of infrastructure, millionaires will eventually become interested in countries such as Croatia, Montenegro or Bulgaria,” said Ella Bratilova, director of the department of foreign real estate at Paul’s Yard.
When buying objects in Europe, millionaires prefer ancient castles. “Partly because obtaining permission to buy architectural monuments in Europe is quite easy,” explains Ekaterina Thein, director of elite residential real estate at Knight Frank.
The craving for millionaires to uncharted lands can be partly explained by the desire to acquire ever larger objects. In “untwisted” places they are cheaper. However, they enlarge not only suburban areas, but also apartments. “Last year, there was an increase in the number of applications for apartments of 400-500 square meters. m, says Mrs. Bratilova. – Millionaires become fewer than 300 square meters. m in the city center, they want to exist on the scale of a country house. “
Another recent trend is the abandonment of high-tech. Since the mid-90s, structures made of glass and concrete were considered the most fashionable architectural style. “Now he is going out of fashion, giving way to a softer California style, which is characterized by clear shapes, floor windows and plenty of air in the room,” explains Ella Bratilova. “And today, as in the beginning of the 20th century, Art Deco and Art Nouveau styles, as well as calm classics, dominate the premises.”
Next year, according to Mrs. Bratilova, both classic and architectural innovations will be popular: “Perhaps it will be something futuristic – because at the beginning of the century people always strive to break stereotypes and come up with something original, apply technical innovations for more comfortable living. “
As for the investment attractiveness of the elite real estate market, then, as before, everything will be in order. “For example, the cost of housing in the elite areas of London in recent years has grown by almost ten times, while average real estate prices in the city have increased by only two to three times,” notes Olga Tvogogova, managing partner at Ostogenka Real Estate. However, according to experts, it is rather difficult to identify the pattern of investment attractiveness of luxury objects: after all, making such a purchase, the client is guided more by emotions than by liquidity considerations.