Most properties in Marbella costing more than a million euros are automatically classified as luxury. Why today the very concept of luxury is transformed more and more into the mainstream market category? Why in the market is almost no uniqueness, and offers to buy real estate are similar to each other as two drops of water? The market is ruled by stereotypes that replace the true concept of luxury, implying individuality and exclusivity. In this article we will look at the true causes of this phenomenon in our opinion.
The influence of stereotypes and the imposition of imaginary trends
Today, the world is increasingly immersed in the mass-market industry. Whatever field of business we take, the trends are the same everywhere. The only difference is the price category of the product or service we are talking about. Even well-known world brands are gradually slipping towards new standards and beauty benchmarks, imposing universal products designed for the average taste of the consumer. Individuality and exclusivity is a rare phenomenon on the market. Why is it so?
One of the main reasons is the constantly rising cost of production. In our case, if we are talking about real estate, its cost of construction is rising due to both the increase in the price of materials and the increase in the cost of labor.
All these are instantly reflected in the cost for the consumer. Therefore, in order to keep the profit margin up to an acceptable level, there is a tendency to optimize all processes and find a universal solution. And it consists in simplifying everything and everything. The market gives a birth to so-called trends, explaining to the consumers this new aesthetics of minimalism in everything.
This is precisely the reason why the industry is sliding towards the mass market. It's just this new mass market is starting to take shape even in the luxury goods industry. The imposition of trends, similar to the fashion industry, leads to the creation of stereotypes in the real estate and investment industry.
Building a new trend in the real estate market
Mass market orientation leads sooner or later and already results in the growth of competition. Stereotypes make developers do things that, according to their understanding the market reacts to. The market reacts to what is offered to it. Unless the mindset of developers changes under the influence of competition, nothing is going to change.
However, there is always an ignorant person who does not know there are stereotypes. He makes a discovery and a breakthrough in the market.
If the main reason remains the cost of production and, as a consequence, the price of real estate, it means that it is necessary to find the ways and approaches when these parameters practically cease to influence the consumer's demand.
When an unoccupied niche is formed in the market, the pioneers always win. The rest of us follow the stereotype. So what is this new niche? This niche is the development of real estate of the collectable class. The task of setting up such an area is extremely difficult. It requires talent, experience of working in a truly luxury industry, and a completely innovative approach: to do things as no one else does, not better or worse, but simply differently.
How do you get collectable property?
Now here's the most important part! To get a truly unique real estate that is actually in the luxury segment and not just a marketing slogan, you need to understand the following.
The level of design must be different. Today's style as a trend of "boxes", epitomizing the new contemporary style, must be a thing of the past, if we do not want to remain in the general crowd of gawkers, obediently following the market. And when we speak about design, we speak about it in capital letters, implying under the word design the development of a different architecture, a different level of interior and landscape, a different approach to providing service to the client.
Unique real estate should have its own face and fall into the category of exclusivity. It should have its own fingerprints like a person. When creating a project, a story is needed so that the consumer understands why we are doing this style. The combination of a good location, a unique design and the inclusion of a well-known brand provides not only a guarantee of being listed in the collectible range, but also a high selling price. Properties become one-of-a-kind.
3. Project cost and sales price
This is one of the main parameters. And herein lies the mystery. How to get a low cost of production and a high rate of return?
We have already addressed this question in quite a bit of detail in many blogs. For those who want to familiarize themselves with this issue in detail, I recommend reading:
To summarize, the know-how boils down to.
- incredible creativity in designing decorative items for interiors and exteriors that are virtually unavailable to many European factories. We supply everything from our own factories and work with trusted suppliers of those items we cannot produce ourselves.
- low costs of production due to our own production
- attraction of a world brand as an image component.
What do we call collectible real estate?
* Unique concept with no match on the market
* Unique architecture
* Unique interior design
* Unique Landscaping
* Property as an Art Object
* Property that grows in value over the years
* Highly marketable property for sale
* Property with design ideas that go beyond the ordinary