A tricky question to try to precisely define what luxury real estate is.
- Certainly, the high price per m² of a property is not the only criterion for classifying a property in the luxury category.
- The criterion of the type of property cannot be used alone to classify a property in the luxury category: so is a castle completely in need of renovation that has lost its splendor considered luxury?
Those of the real estate sites and in particular the real estate ad portals which indicate on the advertisement of a property for sale its price per m² are probably mistaken in a good strategy when dealing with buyers because it is too divisive an indicator, a source of comparison between goods that are too random or subject to doubt because a luxury good is not appreciated solely by the criterion of its high price.
All professional real estate agents experienced in valuations and negotiations for luxury properties will tell you this.
It would be so comfortable to be able to determine the value of a property by the simple mathematical calculation of multiplying the surface area of a property by the price per m² given for the type of property or in the area concerned, if by chance this price per m² used comes from a reliable source.
Everyone could then easily become an expert in valuation or a luxury real estate agent and owners would then no longer have much interest in soliciting specialist luxury or prestige real estate agencies to make valuations of their properties.
Thus, any attempt to classify a property in the luxury category by a simple calculation of the price per m² to determine its value and classify it in the luxury category in relation to a minimum price threshold which would be accepted as a reference point for classification of a luxury category property is futile.
All professional luxury real estate agents required to estimate or establish the market value of a prestigious property at the request of the owners, often with a view to its sale, know full well that all price indicators per m² are only tools , bundles of indices or figures to be noted certainly, but which must be associated with many other criteria to identify a good in the luxury category and try to determine a fair value.
Nothing is set in stone, the real estate market is constantly moving, countries or geographical areas that are neglected at one time can become fashionable, fashionable countries or cities can lose their attractiveness, local cultures vary.
A good location is worth gold!
Just like the location considered No. 1 for the sale of doorsteps and business assets, the geographical location of the property and its environment probably play a large part in its classification or rather its perception in the luxury category.
The amounts and perception of luxury real estate differ from one country to another, from one individual to another, the criteria for differentiating between a traditional property and a luxury property are multiple: price, location , view, services offered, neighborhoods, popular city, real estate spot popular with international customers, etc.
The usefulness of luxury real estate may be very different among the population of wealthy people looking for luxury property to buy.
Behaviors and the decision to buy luxury real estate reflect the world, with nuances, because people are different and do not all pursue the same objective.
For €1,000,000 you can buy a studio in Monaco, the amount would make many people dream, but living in a studio is really not luxury.
With this same amount or even less you can buy a splendid castle in France and have large interior and exterior spaces which some will consider to be true luxury.
To identify whether a property is luxury, it is necessary to look at multiple criteria where refinement, finishes, architecture, age, classification as historical monuments, location and many other criteria can be taken into account to consider it a luxury property or an exceptional property, not to say exclusive, where the word exclusive really makes sense.
When it comes to luxury real estate, subjectivity is essential:
Multiple criteria influence the perception and value of a property:
- like the country's motto,
- the democratic level or geopolitical risks,
- the economic environment,
- the climate,
- the presence and quality of educational or university establishments,
- more or less advantageous taxation,
- the safety of property and people,
- local services,
- access to airports,
- quality of life in general,
- and now, questions of environmental protection are included in the search criteria among wealthy people or the ultra-rich looking for luxury real estate to buy.
Everyone can consider themselves an “expert”, expert in this, expert in that, the title of expert is not protected.
Thus, the same goes for the terms devoted to luxury real estate: whether you are talking about high-end property, exceptional property, luxury property or prestigious real estate, these are only words and adjectives, unprotected or labeled.
