How does elite real estate in Europe maintain stability amid the crisis?

Stability of elite European markets

The elite real estate markets in Europe represent a stable and traditional segment, characterized by a high degree of stability. This situation allows famous places like the French Riviera and Alpine resorts to thrive and attract buyers. These areas are renowned not only for their picturesque landscapes and high-end properties but also for their well-established image, which draws people from all corners of the world looking to spend time here.

As a result, even in times of economic crises, this market segment experiences minimal negative effects: the demand for luxury real estate may temporarily decrease, but it almost never completely stops.

Popular destinations among affluent buyers

Among financially well-off millennials from Russia, the leading areas include:

• London
• French Riviera
• Italian regions ofTuscany and Lake Como
• various resorts in Spain
• Switzerland

In recent years, Cyprus has become an interesting destination in this market and is gradually becoming more attractive to wealthy investors.

Foreign buyers in London

Foreign nationals make up a significant portion of those purchasing incredibly expensive real estate in the London market. Over the past few years, the supply in this segment has decreased significantly—sometimes by up to 50% compared to 2007 levels. As Gulnara Long, director of Property Vision, notes, even despite the decline in interest in luxury properties after the crisis, demand continues to far exceed supply.

Prestigious neighborhoods of London

The map of the most prestigious and expensive areas of London remains virtually unchanged, including places such as:

• Belgravia
• Chelsea
• Knightsbridge
• Kensington
• Mayfair

The London center is experiencing a shortage of new construction projects due to strict urban planning standards and cultural heritage protection, adds Gulnara Long. Since there are plenty of new properties, the market is dominated by secondary options—apartments in the charming "white houses" of Belgravia, although modern apartments in renovated buildings can sometimes be found. Both types of real estate have their buyers, and their interest is roughly equal.

Interesting projects in the primary market

In the primary market, interesting projects can be highlighted, such as:

• Neo Bankside on the south bank of the River Thames
• One Hyde Park in Knightsbridge
• The Lancasters near Hyde Park
• Bramah in Chelsea
• Cornwall Terrace, located near Regent's Park

Cornwall Terrace is a meticulously restored classic property located on the shore of one of the lakes in the southwestern part of Regent's Park. It offers eight unique residences ranging from 743 to 1300 square feet, each with its own story and crafted using only high-quality materials.

Two residences are offered fully furnished, and the price per square meter starts from35,000 euros.

Country property in London

As for country houses in London, according to Elena Yurgenova, the director of the luxury real estate department at Knight Frank, it is worth paying attention to villages such as:

• St. George's Hill
• Wentworth Manor

These areas are becoming increasingly attractive for those seeking comfortable housing in a natural setting and a peaceful environment. Thus, the luxury real estate market in Europe continues its evolution, despite economic fluctuations, remaining appealing to affluent clients worldwide.

Exclusive sports zones

These protected areas offer the opportunity to engage in various sports, such as golf, cricket, and squash. A new house has been listed on Warreners Lane, located in St. George's Hill, which includes six bedrooms, five reception rooms, six bathrooms, as well as a private garden and pool. The price of this property is 15 million euros.

Comparison with the Moscow region

It's interesting to note that the cost of suburban real estate in prestigious areas of London today looks much more appealing than in the Moscow region. According to Elena Yurgenyeva, the average price per square meter in the Moscow region in 2010 was about $5,150, while in the outskirts of London, this figure was $4,500.

French real estate market

As for France, high-end real estate is concentrated in Paris, the French Riviera, and ski resorts. Elena Yurgeneva notes that interest in the housing market on the French Riviera continues to grow. Purchases were particularly active in the first and second quarters of 2009, when some properties were sold at significant discounts.

• For example, a villa in the prestigious resort village of Saint-Paul-de-Vence was purchased in the summer of 2009 for 16.5 million euros, while the original price was 25 million.
• Today, there is a shortage of properties for sale in popular places like Cap-Ferrat, Cap d'Antibes, and Cannes.

Overview of real estate in Saint-Paul-de-Vence

In Saint-Paul-de-Vence, it is possible to become the owner of a Provencal-style villa for the price of 690,000 euros. This offer includes four bedrooms and a garden of 600 square meters. Meanwhile, a similar villa in Villefranche with a plot of 1,700 square meters will cost 1.8 million euros.

A house in Cap d'Antibes, measuring 170 square meters and situated on a plot of 2600 square meters, is priced at 990,000 euros. However, there is also a more expensive luxury villa with a land area of 3000 square meters, which costs 20 million euros.

Resorts of the French Alps

Courchevel remains the most expensive ski resort in France, but the properties for sale here are extremely limited. Among the five villages of Courchevel, the most popular destination is resort 1850, which offers picturesque views of Mont Blanc and the Vanoise National Park.

• Housing prices start at 9,000 euros per square meter.
• A chalet with nine bedrooms and seven bathrooms costs 27 million euros.

Mezhev as an alternative

In recent years, Megeve has become a great alternative to Courchevel. This region offers not only chalets and hotels but also restaurants and elite boutiques. It has long been considered the "Alpine Saint-Tropez," attracting high-profile individuals, politicians, and global celebrities.

According to Anna Konchakova-Dezhak, the director of Tsars & Stars — Tsarissimmo, the golf course has made Megeve a popular resort year-round. However, its main problem is the congested roads in winter. Megeve has the highest concentration of prestigious properties, and the price of new housing ranges from 13,000 to 15,000 euros per square meter.

The luxury real estate market in Paris

In Paris, the luxury housing market is showing consistently positive trends, reflecting a significant increase in prices over the past year. According to information from Anna Konchakova-Dezhak, the cost of residential complexes in the 7th and 8th districts has risen by a full 15%, while in the northern side, in the 16th and 17th districts, prices have increased by 16%. The housing market is also showing a price growth trend in the Latin Quarter, as well as in the 5th and 6th districts.

There is particularly high interest in apartments ranging from 250 to 300 square meters, priced between 4 to 5 million euros. For example, a prestigious apartment in the very center of Paris, just a minute's walk from the Arc de Triomphe, offers you 220 square meters of space for 3.3 million euros. These properties feature magnificent interior design and stylish furniture, as well as provide a stunning view of Avenue Marceau.

Additionally, the luxury property on Avenue Foch in the 16th arrondissement offers an impressive space of 435 square meters for 8.5 million euros; it is located just five minutes from the Place de l'Étoile and the Bois de Boulogne.

Italian real estate market

The Italian real estate market, especially along the shores of Lake Como, Lake Maggiore, and Lake Garda, continues to successfully navigate financial challenges. According to data from The Wealth Report 2010, the price adjustment in 2009 was approximately 6.1%.“The demand for housing near Lake Como has only increased, despite the crisis. People are looking for opportunities for profitable investments in this picturesque area.”“This area attracts the attention of celebrities and wealthy individuals, which in turn has contributed to a two or even threefold increase in real estate prices,” shared Elena Yurgenyeva.

Negotiations and discounts

Despite the overall rise in prices, buyers now have the opportunity to negotiate the terms of the deal.

Real estate in Italy

The property, valued at 10 million euros, is located just a ten-minute drive from Porto Santo Stefano. The complex includes both the main house and a guest building, as well as vineyards, olive groves, and a well-maintained garden, all situated on a spacious 10-hectare plot that offers private access to the coastline.

The process of buying real estate in Switzerland

People interested in buying property in Switzerland must go through a process of obtaining permission from federal authorities, after which approval from the canton is required. Each canton has a limit on the sale of property to foreign citizens, which is reviewed every year. On average, there is an annual quota of about 1,440 permits across the country. However, in the canton of Vaud, foreigners can list their property for sale immediately after the transaction is completed, unlike in other regions where a moratorium is usually imposed for a period of five to ten years after acquiring the property.

It's important to note,The property taxes here are higher than, for example, in the canton of Valais, where there is a limit of only 175 permits per year.

Housing prices in Switzerland

According to estimates, the average price per square meter of housing in Switzerland ranges from 6000 to 7000 euros. The greatest appeal for foreign buyers is observed in ski resorts such as:

• St. Moritz
• Gstaad
• Davos
• Veve
• Montreux

In these popular cities, the price per square meter can range from 5,000 to 15,000 euros. Although Russians are still not the most active group in the Swiss real estate market, their interest is gradually increasing. Some developers have already started targeting this audience.

Du Parc Kempinski Project

For example, the company Knight Frank showcases the Du Parc Kempinski Private Residence project in Russia, located on the shores of Lake Geneva. Out of the 24 available apartments, seven are open to foreign buyers. The management company also offers rental services, generating income ranging from 10,000 to 20,000 euros per month, including maintenance. The expected annual return for the owner is around 5%. The completion of this project is scheduled for 2012.

Luxury real estate in Cyprus

Regarding premium real estate in Cyprus, experts, including Elena Yurgeneva, note that there is the highest demand for spacious villas and apartments in prestigious gated communities, where infrastructure is well-developed and panoramic sea views are available. The travel time to the airport should not exceed 30-60 minutes.

Regardless of a slight price drop of about 10%, interest remains high. However, there is still a limited number of luxury properties in Cyprus that meet the demands of discerning clients, including:

• equipped beaches
• restaurants
• stores
• security
• concierge service
• reliable management companies that provide stable rental income

Response of developers to market demands

It is worth mentioning that developers in Cyprus are actively responding to changes in consumer preferences by offering new projects that largely meet the demands of modern buyers. This has been a positive step in the development of this segment of the real estate market.

The resilience of elite European markets

Elite European markets remain stable and attractive even in times of economic crises. This resilience is supported by many factors, such as prestige, long-standing traditions, and high location value. It is clear that for affluent clients, especially from Russia, regions like London, the French Riviera, Tuscany, and Switzerland continue to be priority destinations for real estate investment. Each of these markets has a unique set of characteristics that make them in demand.

London: a competitive market

London, with its historically established neighborhoods and limited supply of new developments, continues to attract foreign buyers, creating competition in the luxury real estate market. Experts note that demand still exceeds supply, leading to price increases even in the secondary market.

The French Riviera and the French Alps

Interest in real estate on the French Riviera has not only remained strong but has actually increased, as evidenced by recent transactions with significant discounts that have provided buyers access to high-end villas. At the same time, the French Alps, especially Courchevel, continue to be a symbol of luxury and prestige, attracting the attention of winter resort enthusiasts.

Cyprus: a new player in the market

Cyprus, although a newcomer in this circle, is gradually but steadily gaining popularity. This statement is supported by the growing interest of Russian citizens in this destination. The openness and accessibility of the market also contribute to the development of this direction.

Conclusion

In summary, we see that elite European real estate markets continue to be a reliable choice for affluent clients. Despite economic instability, the prestige, uniqueness, and diversity of these locations ensure steady demand and high investment appeal. A key point remains the buyers' desire for a unique living experience that each of these locations offers. This is confirmed by:love for the beautiful...as well as the willingness to invest in it, remains a constant value of humanity.