since 2008 but prices have now stabilized,
while Megève and Val d’Isère have been helped
by limited supplies and there has been price
growth during the rocky period.
In the Caribbean, buyers are coming back and
prices seem to have bottomed out. The perennial favourite islands are seeing the best returns
and with little or no new supply during the
downturn, new buyers are left searching and
off-plan sales are growing.
In South Africa, the Western Cape is much in
demand, largely because the devalued local
currency is making the area more affordable
to Europeans and Americans. The Atlantic
Seaboard is much sought because of its
beaches and ocean views while in the Cape
Winelands, Stellenbosch is popular and appeals
to families for its good schools.
Record set on London penthouse sale
The world’s super-wealthy continue to drive
up real estate prices in London. Concerns that
locals are being frozen out of the city’s market
are on the increase as wealthy Russians and
Middle Easterners continue to seek out prized
London addresses.
Recently, One Hyde Park announced the sale
of a 16,000-square-foot penthouse for £140
million (USD237 million). The only other cities
commanding prices in the same league are
Hong Kong, Monaco and New York.
London’s prices are setting all-time records and
while concern grows over an overheating of the
market, foreign money continues to flow in. In
this latest deal, the penthouse was believed to
have been bought by someone from Eastern
Europe. The previous record apartment price
was set three years ago when Ukrainian billionaire Rinat Akhemtov paid £136 million (USD229
million) for two properties at the same One
Hyde Park location, which he then converted
into a single residence.
Foreign buyers watch the London market warily
as new public policy initiatives are introduced
that impact upon their plans. On April 15,
Britain increased the capital gains tax.
Luxury real estate shows a
strong correlation with the
top end of fine art
What do high-end real estate and world-class
works of art have in common? According to
Christie’s International Real Estate, the value of
the utmost in both has risen by more than 20%
in the past year.
A report released by Christie's International Real
Estate (CIRE) in April 2014, “Luxury Defined: An
Insight into the Luxury Residential Property
Market”, shows that luxury real estate has a far
stronger correlation with the elite end of the
fine art market than it does with the general
housing market.
They are both satisfying lifestyle choices
and they both deliver handsome returns on
investment.
Christie’s says high net worth buyers from
emerging countries are starting to appreciate
what those in more established jurisdictions
have known for a long time: It pays to buy the
best, be it fine art or luxury homes.
The best in fine art has enjoyed the kind of
resurgence experienced in the high end of the
real estate market. The wealthiest buyers are
looking for uniqueness, craftsmanship and
experiential luxury. Each market is driven by
limited stock and high demand. Both deliver
assets that are bound to appreciate.
International homebuyers showed an interest in
city-based investments especially, with seven in
10 High Net Worth Individuals (HNWIs) buying
in cities. This trend was identified in PwC's and
The Urban Land Institute's “Emerging Trends in
Real Estate 2014” report which highlighted that
61% of millionaires live in urban areas and did so
because they wanted a “walkable urban area”.
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