Luxury real estate since the prestige of began

Today, the real estate market cannot complain about a lack of interest on the part of buyers. The situation is no different in the luxury segment. In the face of this popularity, it is worth considering where luxury actually begins. Although the premium and luxury real estate market is governed by separate rules, the limit value of the transaction set by Poland Sotheby’s International Realty allows us to “value” the prestige.
Comments of the expert in the premium and luxury real estate market
Arkadiusz Wojciechowski, Managing Director of Poland Sotheby’s International Realty
The premium and luxury standards on the real estate market are undoubtedly determined by: attractive location, quality and prestige, as well as the available infrastructure, high technical standard of the building or even the availability of technological solutions, i.e. intelligent management system, state-of-the-art monitoring or electric car charging station.
However, according to analyses by experts of Poland Sotheby’s International, these criteria are relative and therefore insufficient to qualify a given property in terms of premium or, even more so, to perceive it as luxurious. The key factors in the purchase process are also: potential increase in the value of the property and investment safety, i.e. strictly financial criteria.
Thus, by defining the market standard of a property – whether it is a flat, a single-family or multi-family house or an apartment – qualitative considerations become secondary to quantitative indicators. According to the Luxury Realty Map report, it is the price that determines the status of a given property first of all, placing it in the category of high-standard apartments.
However, this approach needs to be clarified in detail. Not always a large, and thus “expensive”, house will be a luxury house, and a high standard bachelor, located in the city center will be on the list of premium offers. Why? Contrary to appearances, the answer is simple.
The price per square meter is an important indicator to be considered together with the nominal price of the whole property, taking into account the qualitative premises defining a high utility standard. According to the Luxury Realty Map report, it is the relationship between the square price, the size of the property and the value of the whole property, the purchase of which amounted to at least USD 1 million, that may fully define its standard and market status. Detailed analyses conducted by experts of Poland Sotheby’s International Realty prove that only such a holistic approach entitles to attempt to categorize real estates as premium and luxurious.
Prym definitely knows where to pay a minimum of US$14.5 thousand per sqm for a premium property. In Tricity and Wrocław, the price threshold for 1 sq.m is USD 12 thousand. In the city, 11,500 sq.m. dollars is enough for a standard property to be classified in the premium segment. The lowest prices were recorded in Poznań, where the owner of a high-end apartment may become the owner, spending 10 thousand US$ per square meter.
Click to enlarge your press release Price threshold for 1 sqm of premium property In a city for premium property you have to pay a minimum of US$ 14500/m2 Click to go to the gallery (3)
At the same time, the rationale for adopting the transaction limit value, i.e. the total price of the property set by Poland Sotheby’s International Realty for the amount exceeding USD 1 million, is primarily due to the well-known pricing policy and customer characteristics of this market segment of Poland Sotheby’s International Realty. The global definition of high-net-worth individuals (HNWI), which defines people with liquid assets of at least $1 million, has also become an important reference. In the USA, the symbolic “million” has long been considered a synonym for wealth, and although this amount gives completely different purchasing opportunities, it allows for a clear definition of the premium and luxury real estate market, depending on the city or location.
Click to increase the size of the US apartment and residence market by $3.45 billion – 1.7 thousand apartments and residences in the US were sold for this amount in 2017. Click to go to the gallery (3)
The Dictionary of American Language defines “luxury” as: conditions that ensure a comfortable life; pleasure that is rarely affordable; and an expensive object that makes life easier or more pleasant. The explanation formulated in this way is basically exhaustive. The term ‘luxury’ therefore includes what is valuable and difficult to access. Although this is not a strict definition, we are aware that luxury can be quantifiable. This is particularly evident in the premium and luxury real estate market, where square metres are often converted like carats. So how is prestige valued? Where can you find real estate of rank and value?

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