Luxury real estate: trends and prospects
The luxury property market has undergone some significant changes in recent years. We addressed this subject in our previous article. These changes are reflected in the investment strategies of high-end property owners.
The studies we have been able to consult paint a remarkable picture of the future of the sector and demonstrate the strength of investment in luxury property.
A seller-driven market
As we know, 91% of homeowners intend to make new property investments, whatever their age bracket. This confirms investors' interest in long-term commitments. Moreover, only 61% of owners aged under 35 plan to reduce their portfolio.
This difference is indicative of a trend that puts the seller in a strong position, in a market that remains characterised by a scarcity of quality properties.
Different risk management in property investment
Younger owners tend to secure their investments by diversifying them. They invest in property as well as fashion, new technologies, art and luxury goods. Luxury brands have also taken the measure of the phenomenon by proposing partnerships that enable them to reach a younger audience, such as the collaboration between Louis Vuitton and Supreme.
On the other side of the generational spectrum, older investors seem to take a long-term view of luxury real estate.
This difference is becoming structural in the luxury property market.
A detailed understanding of this situation enables us to anticipate the expectations of a clientele who, whatever their age, share the same very high standards. Keeping a close eye on market developments, but also keeping an open mind on the trends that are driving the wider market, whether in fashion, cars, destinations or new technologies, are essential if we are to seize the best opportunities in a tight market.
Monaco: an emblematic market
In the global luxury property landscape, the Principality is a veritable laboratory. Investors of all generations and from all walks of life meet here. A recognised and highly sought-after international location, Monaco attracts HNWIs with specific and, above all, different needs and expectations. Stars Real Estate's luxury real estate professionals are at the heart of this complex and exciting ecosystem, offering their expertise to investors wishing to develop, diversify and secure their investments.