The luxury housing market is special, both in terms of the target and the expenditure it represents, but the concept of luxury has changed over the years, although some ideas have remained the same. For example, space or square footage is still a hallmark and green space is essential. Also important is security and the neighbors with whom the area where the property is located is shared. Without forgetting that in recent years new ideas such as energy efficiency or environmental awareness have been introduced.
The reason is that the decision to buy a property of this type is based on lifestyle or investment objectives, rather than necessity. Despite the fact that these types of properties are approximately 3.4 times more expensive than average homes globally, according to the Luxury Defined 2018 report, selling them is much easier; the reason is that unlike average properties, whose costs are accessible to a larger number of people, clients in the super-luxury category are not very specific and, above all, do not have financing problems. Normally the investments of this type of properties are usually awarded to the economic stratum called UHNWI Ultra-High Net-Worth Individuals or better known as the Ultra Rich.
According to the consulting firm Wealth-X, this group includes individuals with a wealth in financial assets between US $1 million and US $30 million, considering variables such as wealth levels of the country, population growth and investment opportunities in the future. According to a study prepared by global consulting firm Knight Frank at the end of 2018, among 600 wealth advisors managing more than $3 billion globally, indicates that “23% of Latin American investors consider investing in a luxury residential property in their home country between 2019 and 2020.“
While “57% of Latin American investors already own properties in their asset portfolio“, because this type of business provides protection against inflation, as well as the appreciation of the property in the long term. In this regard, Constanza Maya, a real estate specialist, assures that the current trend in this market “is a relaxed and more minimalist luxury, linked to materials, spaces and design. Technology also goes hand in hand with this change by introducing home automation and Artificial Intelligence to the formula. The times of gilding, opulence and the obvious are behind us“.
How to sell luxury properties?
The right price for the right house
This is achieved through an appraisal or opinion of value in which the characteristics of the residence such as age, state of preservation, type of materials, design and location, among other aspects, are weighted. The idea is to take this appraisal as a price reference and qualify it with the information you have about your property to achieve the right value for money.
Make the images speak for themselves
It is suggested to hire a team of professionals in the audiovisual area to tell a story through quality images; these should show the essence of each space, the innovation of its structure and be accompanied by historical data or curiosities of the property or the geographical location in which they are located.
Choose the most appropriate media according to the lifestyle of your buyers
The success of the sale lies in studying the target market, understanding their needs, habits and lifestyle, and putting together a well-structured marketing plan. This type of customer, beyond the transaction, is looking for a shopping experience.
Do not abuse of digital tools
It is important not to publish in several real estate portals or work with several real estate brokers; this could make potential buyers lose interest when they notice that the property loses its exclusive character and may generate distrust. Once your ad is published, be constant in your communication in the digital channels, but keep doing exclusive events to the property, inviting the media and potential buyers.
Don’t forget about word-of-mouth advertising
In the upper echelons it is important to market through close contacts and inform neighbors that the property will be on the market; these people may surely have friends or family members who are interested in moving to the area. Hold a small event at the property so that they have an exclusive viewing opportunity to meet potential buyers long before the property goes on the market. This can help you significantly reduce the property’s days on the market, increasing its visibility long before you have to post an ad.
Which are the best cities to buy luxury properties?
The exclusive home company Barnes has prepared a report with the cities with the best projection to invest in luxury homes. In order to elaborate the ranking, the interest of buyers and investors in high-end properties is measured. The report is dominated by European cities such as Lisbon, followed by Porto, Madrid, London, Genoa, Greece, Monaco and Biarritz. Only two cities in the Americas are part of the exclusive list, Miami and Montreal.
Luxury also takes over vacations or business trips
According to Forbes Mexico, “lodgings with a minimum value per night of $1,000 grew 60%. The strength of the luxury segment“. In fact, analysts estimate that this travel category has reached a value of $200 billion and will continue to grow in the coming years. In response to these trends, the Airbnb Luxe travel platform offers access to exclusive properties in 70 destinations around the world under the supervision of travel designers who provide in-depth destination knowledge, comprehensive planning, concierge services and VIP assistance every day of the week.
