2022 was a game-changer in many areas of human activity, and real estate was no exception. Particularly in the luxury segment, with buyers directly or indirectly impacted by the war in Ukraine, newcomers to the HNWI and UHNWI categories, better consideration of social and environmental issues, and a widespread need to frame investment within an entrepreneurial logic.
In 2022, as the world was recovering — in fits and starts — from the health crisis, it found itself confronted with a conflict in Ukraine and a surge in commodity prices. How did luxury real estate perform?
HEIDI BARNES: Against the backdrop of successive crises, in a fragile economic and political context, luxury real estate serves as a reference point, a compass. It represents not only a place but also a secure investment that withstands storms.
THIBAULT DE SAINT VINCENT: After the financial crisis, the terrorist attacks and the health crisis, we now face war in Europe, a war that looks set to last. This period is marked by great market fragility. Real estate is not spared. However, luxury real estate is an exception thanks to its excellence, which is more sought-after than ever. Location, environment and finishing quality are major assets that ensure durability.
The concept of a semi-primary residence seems to have become firmly established. What will be the next changes in how it is used?
TSV: Indeed this concept, which was already marginally present before 2020, has become firmly established since then. Today, many of our clients live alternately in the city and at the seaside, in the countryside or in the mountains. For those working in new technologies or holding responsibilities in multinationals, it is common to share one's life between different cities or countries. In Miami or St Barts in winter and in Lisbon or on the French Riviera in summer, they seem to have permanently adopted a new way of life, that of luxury nomads.
"In a world in perpetual motion, the key word will be the ability of entrepreneurs to adapt to the evolution of the modern world and that of international cities and high-end resorts to these ever-more-numerous and ever-more-demanding entrepreneurs." — Thibault de Saint Vincent