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A safe investment for rich buyers, a springboard for owners: upscale real estate seems to be unaffected by the health crisis. While in the post-coronavirus world, professionals will have to adapt to new standards, exceptional, flawless and very upmarket properties will probably see their prices peak. Here are some explanations.
Despite the global health crisis, luxury real estate may well emerge untouched, if not stronger.
But in the post-coronavirus world, luxury real estate may have to reinvent itself to meet new customer needs.
At least that’s what industry experts say.
A haven value par excellence
According to Thibault de Saint Vincent, president of luxury real estate group Barnes, the long isolation period at home has led to an increased need for physical protection, and real estate is an excellent shield against a hostile and vulnerable outside world, the best way to keep family and loved ones safe.
The coronavirus crisis has therefore changed the relationship between customers and real estate: “We feel that the buyers who contact us place themselves in an even more personal and intimate relationship with the stone. Quality properties, with a garden, a terrace, a clear view or beautiful volumes acquire in this context an extra soul that strengthens their heritage value. Especially since many experts believe that other periods of lockdown will unfortunately be expected in the years to come“, said Thibault de Saint Vincent during a webinar on Miami housing.
According to him, clients have become increasingly aware of the importance of living in quality housing and high-end real estate represents for them a patrimonial strategy to defend themselves against the crisis.
“Prestige real estate has proven its resilience and is more than ever playing its role as a safe haven” continues Thibault de Saint Vincent, which explains its rise during the outbreak and the greater confidence that all the players have in it.
A particularly favorable real estate dynamic
Until the announcement of the containment, the high-end real estate market was extremely dynamic, according to Alexander Kraft, CEO of Sotheby’s International Realty France – Monaco.
The manager recalls that “the year 2020 was announced as a record year for our French network until the announcement of the containment on March 12, 2020, with more than 300 million euros of properties sold in 2 months (January-February) and more than 400 million euros of additional transactions signed until the 3rd week of March at that time“. He insists : “2020 was becoming the biggest record year in more than 20 years. January and February, usually a fairly quiet period, were extremely strong (better than in 2019) with a total of more than 700 million euros of goods sold or being sold“.
Although the significant dynamism has reduced, the luxury real estate market was not halted for all that.
Indeed, investors have a lot of cash in their bank accounts that they want to spend. “We have a Russian client who told us that he needs to sell 15 properties in France and the United States before the end of the year.” confirms Thibault de Saint Vincent.
And the owners have significant cash needs to cope with a complicated economic situation.
As a result, buyers and sellers interact and transactions multiply at the height of the crisis: “All the offices in the Barnes network are receiving many signs of interest from investors ready to quickly position themselves on great opportunities in Paris, Bordeaux, Lyon, Cannes, St Tropez, St Barth, Miami or New York. ” emphasizes Thibault de Saint Vincent.
It is especially the means of communication that has changed: instead of visiting properties in person and meeting clients in person, visits to properties and exchanges with clients are now virtual (calls, SMS, emails, videoconferences…).
While Alexander Kraft notes that buyers are not only interested but also more responsive than before, he is also aware of the limits of the exercise : “Purchases will not be able to materialise at the moment for several reasons (difficulty in signing notarial deeds, impossibility of moving, etc.)“.
Towards a new luxury real estate post Covid-19
A real explosion of activity should be felt after the crisis as real estate players will try to complete all the transactions that were prepared before March 12 and were only waiting to be signed and moved. However, the global pandemic will inevitably set new paradigms into motion.
Luxury real estate will then have to reposition itself to meet the new demands of post-confinement clients. New buyers will be looking for a haven of peace after the chaos and a healthier, more stable lifestyle.
Health and wellness will be at the top of the buyers’ wish list: “With containment, customers realize the importance of having a garden, an office“, confirms Adam Redolfi, associate director of Barnes in Miami.
Moreover, location will no longer be a determining factor as the practice of telecommuting is likely to become more prevalent, especially as distance measures are likely to continue: “proximity to the workplace will lose its value as the home office will become a standard rather than a temporary measure“, he continues.
On the other hand, it is the space that will become a real added value, the size of housing will become decisive for buyers, in a race for square meters.
The sudden and unprecedented experience of containment has thus imposed a new paradigm in real estate development conception.
” Many entrepreneurs, business leaders, executives and investors who have reinvented their weekly rhythm now see their second home as an immediate extension of their primary residence. Or even reverse the priority between living in the city and in a resort. Under these conditions, Barnes’ offices, particularly in Europe, have already noted an inflow of demand for properties located about an hour’s drive from major urban centres and with enough space to set up a permanent temporary remote office. With this new phenomenon, requests do not necessarily come from wealthy families, but also from owners of an apartment in the city wishing to sell it to buy a property in the countryside intended to become their main residence“, concludes Thibault de Saint Vincent.
Read also > Switzerland: Cardis-Sotheby’s launches its first real estate e-show
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A safe investment for rich buyers, a springboard for owners: upscale real estate seems to be unaffected by the health crisis. While in the post-coronavirus world, professionals will have to adapt to new standards, exceptional, flawless and very upmarket properties will probably see their prices peak. Here are some explanations.
Despite the global health crisis, luxury real estate may well emerge untouched, if not stronger.
But in the post-coronavirus world, luxury real estate may have to reinvent itself to meet new customer needs.
At least that’s what industry experts say.
A haven value par excellence
According to Thibault de Saint Vincent, president of luxury real estate group Barnes, the long isolation period at home has led to an increased need for physical protection, and real estate is an excellent shield against a hostile and vulnerable outside world, the best way to keep family and loved ones safe.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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A safe investment for rich buyers, a springboard for owners: upscale real estate seems to be unaffected by the health crisis. While in the post-coronavirus world, professionals will have to adapt to new standards, exceptional, flawless and very upmarket properties will probably see their prices peak. Here are some explanations.
Despite the global health crisis, luxury real estate may well emerge untouched, if not stronger.
But in the post-coronavirus world, luxury real estate may have to reinvent itself to meet new customer needs.
At least that’s what industry experts say.
A haven value par excellence
According to Thibault de Saint Vincent, president of luxury real estate group Barnes, the long isolation period at home has led to an increased need for physical protection, and real estate is an excellent shield against a hostile and vulnerable outside world, the best way to keep family and loved ones safe.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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