Given our current economic climate, is it wise to invest in luxury real estate?
Believe it or not, the answer is yes. While many businesses have been severely affected by the COVID-19 pandemic, shelter remains a constant need. Though affordable homes continue to be in-demand among the general market, the pandemic has revealed to us the importance of quality living.
Today, it’s no longer enough to have a roof over one’s head. Living in a comfortable and convenient setting provides us with a better sense of security, even in the worst of times. Investing in luxury developments has been proven many times to be a wise move, even in a crisis. If there’s a silver lining in our current difficulties, it’s that developers are offering better payment terms because of the pandemic. As the following examples would show, real estate remains a secure investment, especially those that offer the best in terms of service, location and amenities.
Read on to find out why luxury developments are worth looking into, even during a crisis.
One Bishopsgate Plaza offers residents a view of some of London’s most iconic landmarks.
Known as London’s most coveted neighborhood, Chelsea Barracks offers a lush home in the middle of a thriving business district.
When luxury equals security
With the COVID-19 pandemic and its future Brexit plans, you’d think that London’s real estate market would be suffering. Contrary to logic, however, new luxury apartments in Britain’s capital continue to sell well, especially among foreign investors. As reported by the South China Morning Post last March, luxury developments like Chelsea Barracks and One Bishopsgate Plaza attract a lot of rich Chinese and other foreign buyers.
The strength of London’s real estate is its setting. Even during a global economic crisis, the UK has always proven to be a stable country, with a dependable government, transparent tax system, excellent transportation routes and a strong economy. Its exemplary schools and international business groups also help attract both locals and migrants to the city. According to Mark Elliot, head of international residential for Savills in Hong Kong, “Historically, instability and uncertainty are very good for the London market. People see London as a relatively safe haven.”
Despite its expensive price tag ranging from £5.25 million to £42 million, Chelsea Barracks attracts investors because it offers one of the last opportunities to buy a London property basked in green spaces. One Bishopsgate Plaza meanwhile is the first mixed-use, high-rise project in the city, offering security, posh amenities, generous spaces and unhampered views of London’s most famous landmarks—the Gherkin, Tower Bridge and the River Thames.
Caracas, Venezuela’s urban capital, saw a rise in luxury building development during the 2016 recession.
Stability amid uncertainty
A country that fell into deep recession in 2016, Venezuela saw many of its industries suffer. Yet this South American nation had one sector that succeeded during its dark ages: luxury real estate.
With Venezuela’s steep inflation rates and restrictive policies on foreign exchange back then, companies turned toward luxury properties to protect the value of their assets. Chacao, home to the country’s major financial and commercial centers, experienced a boom in office space rental and purchases.
According to Beatriz Yilo of the CBRE Venezuela office, an affiliate of the real estate giant, the real estate sector absorbed bolivars, the local Venezuelan currency, that was quickly dropping in value due to the recession. High-end offices and residences became the wealthy’s way of coping with the recession, as these properties still promised some revenue even amid political troubles and economic uncertainty.
The building boom of 2016 was concentrated in Caracas, the country’s capital and its most urbanized area. While affordable and middle-class housing suffered oversupply and a shortage in materials, private companies financed the construction of numerous buildings offering office and luxury home spaces. Even when other properties were hit badly by extreme inflation the following year, luxury real estate proved to be strong. The offices and homes in Chacao still gave its investors revenues even during the worst times of Venezuela. These investments not only helped companies save their assets during a recession, but it also helped save the local construction industry and numerous Venezuelans.
Ortigas Land projects—The Imperium, Empress and The Galleon—promise comfort and convenience in a luxurious setting.
A promise to progress
In the Philippines, luxury real estate continues to develop even amid a pandemic. Considering the standards of the new normal, many of these high-end developments have evolved to feature contactless technology, mixed-use setups and even personalized services to bring a new level of comfort and convenience to their future users.
The up and coming projects of Ortigas Land, in particular, feature premier spaces that are promising in terms of revenue to potential investors. The Galleon, a mixed-use complex set to rise in the heart of Ortigas Center, offers retail, residential and office spaces that feature exquisite finishes exuding an opulent vibe, smart living features that make for a seamless and worry-free living, and a state-of-the-art building management system that further amplify the exceptional lifestyle that can be experienced at The Galleon.
The Imperium—a 62-story residential tower that has only four units per floor—gives a whole new meaning to exclusivity and privacy. Unique and premium features including its slanted windows, infinity-edge pool, landscaped garden decks, residential lounge and even a mini-theater furnished with recliner chairs, would allow its residents to revel in an exclusive lifestyle with an address that speaks for itself.
Lastly, the 56-story Empress, the latest development in Capitol Commons, offers smart home features that ensures limited contact with frequently-touched surfaces such as door knobs, plugs and switches. Here, health and wellness take center stage as the Empress also boasts of therapeutic colors, sustainable features and a biophilic design. Spacious living spaces are on offer, too, as available units are in one-, two-, three-bedroom cuts, as well as three-bedroom bi-level size.
All these projects by Ortigas Land have been planned to provide the most comfortable and convenient experience one could hope for in the local setting. So if you want to keep your investments secure, you may want to consider buying luxury real estate. Whether you’re looking to buy a retail, residential or office space, premier real estate has always proven to be a stable and strong sector, in cities all over the world.
With its exquisite offerings, upscale amenities and strategic location, you can be sure that your property will be a reliable asset that can bring you either revenue or refuge, even in the worst of times.
Sources: www.reuters.com, www.economist.com, www.scmp.com, www.chelseabarracks.com, www.plparchitecture.com