Luxury - The art of living | n.1/2018

The luxury property market: the challenge of understanding and the value of opportunity For people who work in the property market, the luxury segment is an ambitious market into which to venture with enthusiasm. We understand the Luxury Real Estate environment as something cosy, fascinating and, sometimes, full, not only of money but also of myths. The axiom expensive property = luxury property is the most common false start which derives from a poor understanding of the trends which characterise this market. The consultants’ approach must also respond to well-defined expectations. At the base of everything are the needs of the wealthy who have different habits, cultures and methods of relational approach, whether they are buying a loft in the heart of Rome or selling the family castle in the Chianti region in Tuscany. For example, if in the English-speaking markets the consultant’s Personal Brand is a significant aspect of value, in Russia, where the residential market industry is still young and not very sophisticated, it is a concept that still has to mature. It makes sense that a magnate who wants to buy a property in Park Avenue will choose one of the most important property companies, with the risk of overlooking the rockstar broker. In Russia there is no Hall of Fame of property consultants! According to the Global Luxury Real Estate Report 2017 , on the planet there are 1.6 million households (of which 315 thousand are in Europe alone) with net assets of 10 million dollars, assets that have grown 11% since 2015 and 91% (you’ve read correctly) since 2010. It is therefore evident that there is such a quantity of preferences, habits and needs, that put the property consultant in the position of needing to understand this market better in order to work in an informed way and still turn a profit.

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