What is elite real estate? What are its features and cost?

The prices for luxury real estate vary significantly depending on the location. For example, in Montenegro, such properties can be purchased for 500 thousand dollars, while on the French Riviera, they cost no less than 3-4 million euros.

Criteria for classifying a property as part of the luxury real estate segment

• Geographical location: buyers tend to purchase properties in new prestigious neighborhoods that have only recently become considered prestigious.
• Sustainability: affluent buyers want to live in homes built according to the principles of "green" construction.
• Location: A new generation of luxury property owners seeks to live in the heart of major cities rather than in quiet suburbs.
• Multifunctionality: the focus of today's buyers is on large family homes where different generations will feel equally comfortable. generations will feel equally comfortable.
• Privacy: buyers are looking for secluded places to live — separate houses or multi-apartment buildings.
• Exclusivity: holders of large fortunes seek to invest not just in elite housing, but in a work of architectural art or a historical monument, often acquiring ancient palaces or estates of famous individuals.
• Practicality: buyers are increasingly turning away from houses and apartments that clearly demonstrate the well-being of their owners and favoring an optimal combination of price and quality. and favor an optimal combination of price and quality.

Types of markets

To classify the descriptions of luxury real estate, Christie's specialists identified two types of markets: urban and resort.

City markets include:

• World business centers: the largest megacities of the world.
• Regional centers: cities that hold significant regional importance.
• Suburbs: elite neighborhoods of large and medium-sized cities, as well as small towns with affluent populations. populations.

Resort markets include:

• Global tourist centers: leisure areas popular among affluent buyers.
• Dacha settlements: small settlements located near large cities.
• Regional resort centers: cities that attract visitors with their unique cultural, educational, and recreational resources.

Price dynamics

Interestingly, in 2014, luxury real estate in resort areas was appreciating faster than in cities. Properties in the largest tourist centers, cottage communities, and regional resorts increased in price by 28%, 25%, and 19% respectively. Meanwhile, urban markets showed more modest price dynamics: in megacities, the cost of luxury square meters rose by only 9%, in suburbs by 3%, and in regional centers by 15%.