Andratx Makes Its Way Into Luxury Residential Ranking

30/12/2014 – Cinco Días

The German realtor Engel & Völkers, a leading upmarket player, has just produced the first ranking of the most exclusive areas to buy property in the world. To work out such a ranking, the realtor has considered the most expensive real estate transactions that have taken place in recent months, as well as various market analysis reports.

The Mallorcan port of Andratx is placed at No. 19, the only one representing Spain on the list of 25 most exclusive enclaves to reside in, as it records transactions in which the price per square meter can reach up to 27,000 euros.

But what is it about these residential areas that makes them classified as premium by the experts?

Experts from Engel & Völkers explain that neither the economic situation in the host country of purchase nor housing investment is are defining here, since “international demand for this kind of property is very high”. International buyers value other features such as unique locations, dwellings equipped with all luxuries and amenities, great services available as well as breathtaking views, among other aspects. “Ever more investors, especially from Eastern Europe, Asia and South America are considering the purchase of luxury properties as a safe investment,” states Christian Völkers, president and CEO of the company.

The Saint-Jean-Cap-Ferrat peninsula, amidst the French Riviera, tops the list of the 25 most exclusive areas in the world to buy a home. It is followed no less sophisticated wealth enclaves such as Hong Kong, East Hampton, and the most upscale neighborhoods of London and New York. In fact, a villa on the Claude Vignon Ave. of that French town recently reached a sale price of about 120 million euros. It has an area of 600 square meters, which translates into a price of 200,000 euros per square meter, the highest recorded in an transaction by Engel & Völkers.

Hong Kong ranks second, after the penthouses for sale in the elitist Twelve Peaks building in the upper-class Victoria`s Peak district reached 82.3 million euros, equivalent to no less than 190,000 euros per square meter.

Tight Supply

The third place on the luxury podium goes to East Hampton, located on the eastern-most end of Long Island, New York. A sale of an exclusive property whose generous land lot featured a private lake has been recently closed. The price per square meter was 168,600 euros and the villa was sold at 118 million. In the luxury market, as in other markets, prices increase further when the supply is limited.

As Völkers points out, “The critical factor in the case of high-end properties is always the micro-location, which may even be the right side of a street or one featuring unforgetable views. Furthermore, residences in these places hardly change ownership.” This means that when demand is strong, prices soar, suggest other consulted experts.

Monaco, Sardinia, Cannes,Gstaad, Geneva, Paris, Saint Moritz, Zurich and Vienna, typical for such classifications, are other locations that slip onto the list of the 25 most exclusive areas. Germany has managed to get cities like Munich, Hamburg and Berlin on the elite list thanks to high prices being recorded in some transactions from their new development projects.

London and New York are also regular names on these rankings. In fact, a two-story penthouse located in London’s One Hyde Park complex in Knightsbridge, was sold for 150,000 euros per square meter. Meanwhile, on the other side of the Atlantic, apartments surrounding Central Park, New York, are often a traditional target purchase. On 59th and Fifth Avenue, penthouses have been purchased for 120,600 euros per square meter — something very few can afford.

New areas join the more traditional ones

The U.S.: There are prime locations like Greenwich, Connecticut; Palm Beach, Florida and Los Angeles, where Holmby Hills, Bel Air and Beverly Hills form the traditional “Platinum Triangle”.

Russia: Moscow ranks 12th thanks to transactions in its exclusive Kropotkinskaya district.

Asia: Singapore and Tokyo occupy positions 13 and 14 thanks to the upward trend registered in sales of luxury homes in their skyscrapers.

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: Aura REE