Spanish luxury real estate in a changing global market

“At the end of the day discerning clients demand and expect to receive the best and most efficient service in finding them extraordinary, well-priced properties where they can enjoy life”

Leading specialists in luxury real estate from around the world came together in Southampton, Bermuda, during 15-17 October at Christie’s Great Estates 2008 Global Annual Conference for Owners and Senior Management. The main topic at this exclusive gathering was the changing dynamics of the world economy and an analysis of the luxury property segment and the challenges and opportunities presented by it.

In spite of the general slowdown in the stock and property markets, caused directly and indirectly by the current financial and economic situation, it is clear that the top end of the property market remains robust. This is a market that is changing rapidly, as both the age and socio-economic background of the growing numbers of rich and ultra-rich attest to. Moreover, they come from an increasingly broad range of countries and benefit from wealth at a younger age. With all of this comes a change in tastes, preferences, needs, attitudes and cultures that challenges luxury real estate specialists as they respond to a rapidly evolving and increasingly global market.

Where is today’s – and tomorrow’s – wealth concentrated?

The delegates, led by keynote speaker Ileana van der Linde, gathered in Bermuda to discuss these issues. A principal within the Wealth Management Practice of Capgemini, and co-author of this year’s Merrill Lynch-Capgemini World Wealth Report, she is a noted authority on the subject of high and ultra-high-net-worth concentrations, tendencies and consumer patterns. Among the questions raised were not only ‘Where is most wealth currently concentrated?’ and ‘Where are significant new pockets of wealth emerging?’, but also ‘Where are they investing and spending?’, ‘What are their tastes and preferences?’ and ‘How does one market effectively to this segment?’.

Given the increasing geographical range and rapidly changing scenario of this market, the answers are more complex than they would have been 20 years ago. While much wealth remains concentrated in the traditionally wealthy countries of Europe, North America and Japan, it is clear that there is a rapid growth of wealthy people in regions such as Russia, Brazil, the Middle East, China and India. They represent a vital component of the luxury real estate market and will continue to drive much of its growth for many years to come.

Where is it being invested?

The tastes and preferences of the new super-rich can in some cases be flamboyant and extravagant. Typically, however, they regard luxury real estate as both a good form of investment and a home in which to relax and entertain close friends and associates. This is reflected mostly in ultra-luxurious seaside villas, city penthouses and private member’s clubs that offer possible comfort and amenity. While relatively new destinations such as Brazil, Australia, Thailand and Dubai do feature; it is still primarily traditional markets that they are most attracted to. These include classics such as the US, the Caribbean, the French Riviera, Monaco and Spain. Part of a distinguished panel discussing these points was José Ribes Bas, co-director of Rimontgó, a well-respected Spanish luxury property firm and Christie’s Great Estates representative in the Valencia and Costa Blanca regions.

“We have clients from Spain and the rest of Europe buying luxury city pads in New York or exquisite mansions in other parts of the United States, as well as wealthy people looking for specific properties in places like Tuscany, but many of the moderate to highly wealthy are still primarily looking for that private, beautiful villa along the Mediterranean, and Spain still features prominently in this market.” Asked by delegates how he views the longer-term position of the Spanish market he answered: “Spain has always enjoyed a leading position in this field because its fundamentals are so good. In other words, it has so much going for it – from climate, natural beauty and an ever-improving infrastructure to a strong and distinctive culture, excellent real estate and a really convenient location so close to the heart of Europe. Add to this the fact that it is safe, stable, part of the Euro zone and enjoys a healthy banking system with one of the highest cash to lending ratios and you see why it remains an unavoidable option.”

Marketing to an international clientele

Widely recognised as a leader in luxury international property marketing, José Ribes heads a firm that has built a broad international customer base on the dual pillars of 1) modern international web marketing and networking, and 2) the reputation and service of a company that has enjoyed a prominent name for 50 years. “Where the bulk of our buyers still come from the British Isles, Switzerland and Northern Europe they now also include Russia, Eastern Europe, the Americas and beyond.” Part of the company’s success in this regard has been an ability to reach an international clientele consisting of individuals and businesses of high net worth.

“We have invested a great deal of effort in our website, our marketing presentation and establishing close working relations through international networks of high quality agencies,” says Ribes, “but ultimate success depends on hard work and the service you provide in person. If we can offer clients the property they were looking for, arrange all paperwork in an efficient and transparent manner, and also extend our efforts to anticipating and foreseeing their needs, and informing them about a host of practical and lifestyle issues, from schools to decorating services, then our good name will continue to spread. The increasing diversity in nationality of clients requires a sensitive approach in which we take linguistic and cultural differences into account, yet at the end of the day discerning clients demand and expect to receive the best and most efficient service in finding them extraordinary, well-priced properties where they can enjoy life.”

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New post on at Monday, 27 October, 2008, 11:45 am and is archived in International News, Luxury, News about Spain, Places of Interest. Subscribe to answers with RSS 2.0 feed. You can post a comment, or make a trackback from your web.