Luxury real estate : an investment based both on passion and reason
More than just a lifestyle project, luxury real estate provides a means for entrepreneurs to live out their passions.
This is a constant across all continents: wealthy individuals, both HNWI and UHNWI, are mostly entrepreneurs. Two thirds of these have built their fortune personally, and those who were lucky enough to inherit have generally increased their wealth through entrepreneurial investments.
Each year they give place to increasing emphasis on luxury real estate in the management of their assets. In addition to long-term capital gains, establishing their primary residence in one of the most internationally recognised cities enables them to remain in daily contact with other entrepreneurs working within the same sector. Indeed, the divide between private and professional life has been blurred with the universal impact of digital technologies. They can manage their activities and businesses remotely from their smartphones or tablets while spending time with their families or partaking in leisure activities.
After choosing their main residence, these buyers will once again act as entrepreneurs when deciding on their secondary residence. They invest in a broad panel of luxury real estate opportunities in all sectors (properties with a distinctive character, mountain chalets, coastal villas, hunting estates, vineyards, horse farms, hotels, yachts etc.). Where possible, they transform these assets into revenue streams through the rental of residential assets and via their operation for more entrepreneurial projects (vineyards, hotels, hunting estates, horse farms, etc.)
'These secondary residences, which can be more than one in number, serve as a showcase for their art collection, their wine cellar or their vintage cars, while also being used as locations for their public relations events and operations.'
JÉROME FÉLICITÉ, PRESIDENT, BARNES SWITZERLAND
For these entrepreneurs, particularly the youngest among them, real estate is not something static. Their investments are part of an overall entrepreneurial strategy that has enabled them to make their fortunes.
'For clients like these who are constantly on the move, flexibility is vital, including in the luxury sector. In the eyes of these innate investors, the acquisition of luxury real estate has taken on a new character as a short- medium- or long-term investment'.
STANISLAS DE QUERCIZE, FORMER CEO, CARTIER