In 2020, the capitalization of the wealthy withstood the blow of the pandemic. In 2021 it increased significantly with particular prominence in the real estate segment. The growth rate of the richest population sees the United States in first place, followed by the UK, France, Japan and mainland China.
The approximately 130,000 new billionaires in the last 2 years are under 40 years old and more than 95 percent are self-made with very different tastes and habits if compared to the “traditional” super rich. Their concepts of investing in real estate are multi-geographical, meaning investments in different geographical areas of the world. Special attention to the amenities that different areas can offer, appreciation for large open areas suitable for socialization, sports, integration of nature and urbanization. High propensity for redevelopment of properties and their spaces. In all this, the so-called Luxury segment of real estate is not expected to go downhill even for the next two or three years as the authoritative experts at Knight Frank estimate, stating that average prices of the most valuable properties had an increase of about 8.5 percent last year. Topping the list is Dubai followed by Moscow, which remains dependent on the progress of the conflict with Ukraina. The main hubs of interest have transited between sunny seaside resorts and major winter resorts underscoring that leisure real estate always offers high yields and prices show a remarkable average increase (over + 43%). In this trend of increases in Italy we find Lucca in 52nd position; Venezia in 60th place; Milan in 68th position; Firenze 72 and Rome 74th. It is a singular phenomenon that the so-called “Bella Italia” is snubbed by luxury super investors compared to other locations that are perhaps less attractive scenically but with “more modern” real estate and territorial infrastructures and in step with the new demand needs.
Reflection of this phenomenon leads to the clarification that the choice of a good investment is shifting from the “classic” luxury style to that of real estate excellence in which a virtuous circularity emerges between real estate units and the territorial system.
Another phenomenon is the “flight” from chaotic urban centers to locations with wide open spaces, green areas and services that can guarantee well-being and a high quality of life. Or cities that have activated major spatial redevelopment plans are being targeted and we have projects already underway and urban areas already prepared for this change in trend. Excellence takes the place of Luxury as an end in itself then and in this new order of choice many elements, hitherto neglected, are added to the valuation of properties thus determining high increases in value, minimal appreciations and even regressions in their prices. Comfortable houses and workspaces, beautiful and on a human scale, without neglecting ethical elements of sustainability and innovation, of well-being and enjoyment. These are the contemporary asset classes for secure real estate appreciation over time, in addition to the more classic ones of course. Geo-location basically does not vary much from previous periods in terms of the preferred investment choices of premium-price properties, what changes a lot is the attention to the real “quality” of the property and the territory in which it is located.
A choice of excellence in short.
Edited by reFRAME Editorial staff