Investing in luxury real estate - Expert Views
What is luxury real estate?
By luxury real estate, or prestige real estate, we mean the sale and acquisition of apartments, houses, private mansions, buildings or castles, the value of which is generally greater than 2 million euros.
Prestige real estate is fully part of the Luxury universe, concerning more than 20% of the world's wealthy people. It represents a strong social marker and initially responds to an essential need of our time, "finding a place to live".
Luxury real estate is a very powerful tool for creating a resilient and potentially profitable estate. Indeed, the purchaser can make it his main residence but also exploit it with the aim of perceiving complementary incomes. As such, more and more investors are collecting assets around the world and taking advantage of new technologies to rent them in their absence.
The most prestigious properties are even qualified as works of art, reaching unimaginable amounts. One example is the Palais Bulles, a famous and luxurious palace in Théoule-sur-Mer in the heart of the French Riviera. Offering a panoramic view of the bay of Cannes and the Mediterranean Sea, it is a place full of history. Built in 1975, the palace was bought by Pierre Cardin in 1991, and turned into a reception venue ...and whose price today is around 420 million euros.
Where can you find these exceptional properties?
The high-end real estate sector is mainly concentrated in areas that have been established for several years, with 3 main destinations: the city, the sea and the mountains.
The city, along with Paris, London, New York, Tokyo, Los Angeles and Monaco, has the highest prices and is the main focus for purchases of primary residences.
The sea - the French Riviera, St Barthélémy, the Balearic Islands.
And the mountains, with the Italian, French, Swiss Alps or Colorado - symbolize the "pleasure" purchase.
An industry in transformation
The emergence of green growth is forcing luxury real estate to move towards more environmentally friendly construction and materials. We are seeing a revolution in the industry and even the development of self-sustaining properties that will likely be better valued over time!
The younger generations, who are heirs or have made their fortune in the digital world (66% of them), are very sensitive to sustainable development.
Contrary to what one might think, these young people are turning at least as much as their elders to real estate. Luxury real estate represents a formidable vector of social recognition while allowing the realization of a potentially profitable entrepreneurial project.
Support from Societe Generale Private Banking
Societe Generale Private Banking will support you by drawing on the strengths of the Societe Generale Group with its real estate experts and its international network of partners. Our teams will help you with the acquisition or sale of your property and will give you access to exclusive offers in complete confidentiality. Do not hesitate to contact your private banker for more information.
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