In the past, the most expensive housing in a large city was tied in some way to the economy of the city itself. If the general market was weak, the high end was also weak. If the general market is doing well, the high end is also doing well. But in cities like New York City, Aspen, Dubai and Miami, ultra-luxury goods increasingly exist in a separate market, where the wealthy can spend their money at a level completely disconnected from their local environment. I’m letting you know. At these levels, the ultra-rich are engaging in a game of global one-upmanship, and higher prices can, in turn, make certain properties more attractive. In this episode, the founder of ten31 Media, which focuses on real estate, talks to Hiten Samtani about how this market has developed. We talk about trading, brokers, buyers, and general economics of this ultra-premium tier. We also discuss the rise of branded condos, or condos with Mercedes and Porsche imprimatur, and how they are reshaping the real estate landscape. This transcript has been lightly edited for clarity.
Key insights from the pod:
Why are we building multi-million dollar luxury towers? — 4:37
Who is developing these properties? — 6:52
What is the profit margin for such a property? — 7:55
What goes into multi-million dollar properties on the market? — 10:22
Increase wealth through real estate development — 11:53
Why do billionaires own so many homes in the same city? — 12:37
Is the luxury real estate market cyclical? — 14:22
How much of luxury real estate is subject to rule of law arbitrage? — 16:16
How are brands changing luxury real estate? — 19:29
Impact of luxury development on local residents — 23:58
How big is the global luxury real estate market? — 25:38
What are the risks to luxury market trends? — 29:07
Could cryptocurrencies impact these markets? — 30:45
What is the intermediary community in the luxury goods market? — 32:20
What’s the next trend in luxury real estate? — 33:38
