Why invest in luxury real estate?

Who has never dreamed of investing in luxury real estate? Indeed, prestigious properties have always been a source of inspiration and excitement. Are you still afraid of taking the plunge into high-end investing? Find out quickly why you should leave your worries behind.

What is luxury real estate?

It's difficult to answer this question precisely, as the criteria can vary from one country to another.

What is certain is that it is not enough to post a high price to make your property prestigious. The rare, exclusive and qualitative characteristics must be taken into account. In this respect, luxury real estate corresponds to a market to which few people have access and includes properties that are rarely found for sale, which makes them exclusive!

There are different types of luxury properties: from mansions to castles, from villas to penthouses. These high-end properties have prime locations, which make them highly sought after. They are located in micro areas such as the districts of Luxembourg: Belair, Merl, Limpertsberg, or the hyper center and some streets in surrounding cities.

Finally, high-tech equipment and noble materials are also signs of prestige.

What are its advantages?

In addition to location and exclusivity, luxury real estate has a number of other major advantages, including:

• an exceptional location without opposite 
• the presence of high quality equipment, such as a kitchen, a bathroom, a laundry room, a laundry room, a bathroom, a laundry room,
• the presence of top-of-the-range equipment, such as an infinity pool, wine cellar, fitness room,
• a strong positive emotional charge (wonder, pride, enthusiasm).    

What types of investments are possible in luxury real estate?

To access luxury real estate, several solutions are available to you:

• buy an existing prestigious property that corresponds to your search criteria;
• build a new home, in order to offer you the facilities and architecture of your dreams;
• invest in rental property to make a quick profit;
• opting for flipping, by buying an existing luxury home to renovate and resell.

Prestige real estate: a profitable investment?

Luxury real estate is an investment known for its profitability, which continually increases in value. Moreover, "the arrival of new rich people in search of the most beautiful objects in the best places makes this market even more attractive. As a proof, we can regularly read in the newspapers of stars selling their real estate at a much higher value than at the time of acquisition." In fact, prices never go down. 

A prestigious property will allow you to build up an important patrimony guaranteeing you a great financial security.

Depending on the duration of the investment, the objectives will not be the same.

"A luxury property is generally kept for several years and at least 5 years. They often undergo personalization of style according to the origins of the owners. In the medium term (5 - 10 years), you can create a real estate portfolio (rental or not) with the objective of resale. In the long term (15 - 30 years), you will create a heritage to be passed on to your descendants.

How to invest in prestige real estate ?

To invest in prestige real estate, you must first consider your objectives. Do you want a return on investment in the short or medium term? What criteria are you looking for?

Furthermore, choosing the right time to invest is important. Depending on the current market, this "right time" will not be the same.

Don't know how to go about it?

HESTIA GROUP Coldwell Banker, whose team has been present in the Grand Duchy for more than 10 years, knows perfectly well the fluctuations of this market in Luxembourg.

Recognized as the world leader in this sector, our international network and our strong experience allow us to best assist our clients, and this since our creation in 1906.

So, to get the best prices and the best advice, don't wait any longer and contact one of our consultants!