In an area where there are uber luxury properties such as the Palm Jumeirah or Emirates Hills perhaps, the surrounding districts and even city benefits.
That’s because uber-luxury in real estate often indicates an area which offers the greatest lifestyle benefits, the most desirable landscapes, facilities and attractions, for example.
I’ve seen that areas where uber luxury properties are built will often encourage savvy developers to create more high-end real estate. In other words, uber-lux properties can catalyse more real estate developments.
A golf course, for example, might have the largest and most desirable properties adjoining and then other, more affordable, yet luxurious properties radiating outwards.
For example, while the fronds of Palm Jumeirah include some bespoke uber-luxurious properties – often owned by famous people and business moguls – as you move towards the trunk, we see apartment blocks – but those apartment blocks are high-end, with luxury facilities.
Uber luxury property attracts high-net-worth investors, who often hold senior positions in the corporate world, such as successful company founders, and people in senior executive roles or other positions of influence.
And globally, the luxury property market is bucking downward trends. People who are considering buying over the next few years are now looking for larger, more luxurious spaces, driven by the culture change induced by the pandemic, which saw more of us spending more time in our homes than ever before.
Of course, property investment in the multi-millions brings investment to the country, which in turn bolsters the local economy. A thriving uber-lux property market underpins success in other real estate sectors. And investment in high-end property is widely regarded as a reliable investment class during inflationary times.
I’ve noticed a rise in the number of areas developing uber-luxury properties as developers and governments realise the long-term economic benefits of creating more desirable areas to live, with higher levels of interest in lesser-known European tax havens such as Andorra, Czechia and Georgia – and more surprising places like Mexico City, Egypt and Sri Lanka.
People are drawn to aspirational communities – living among the rich and successful is a desirable idea for most of us – and we want to be given the chance to enjoy the sort of lifestyles and facilities enjoyed by those we aspire to be like.
And, of course, pockets of uber-luxury property create wealth, with a host of jobs coming into the employment market, driven by new resorts, restaurants, malls, sports centres, spas and other leisure facilities, for example.
Another key factor here is that a HNWI investment in an uber-luxury property suggests economic stability in the local market. A savvy investor wouldn’t invest in a mega-million-dollar property if they were advised not to do so. So expressing that confidence in the market’s long—term success has a ripple effect downwards into other real estate sectors.
Global wealth has grown in the last few years. In fact, 2021 saw the fastest annual growth rate ever recorded, as aggregate global wealth grew by 12.7% to an estimated US$463.6 trillion, according to the Global Wealth Report 2022 from Credit Suisse.
This rapid growth in wealth is seeing more people investing in luxury property, as trust in traditional shares and futuristic cryptocurrencies wanes. With the shifting trust, and rise of more globalised, financially-savvy investors, buying a property is now considered more of a necessity for anyone wishing to increase their wealth portfolio.
Simply put, it’s worth keeping a close track on where HNWIs are investing their money – and looking for properties in those regions that match your budget. Uber luxury property might not be for everyone – or affordable for many of us – but it certainly helps drive up the success of local, regional and international real estate markets – which benefits everyone.
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