Luxury real estate: what is the price of the exceptional?

Luxury real estate: what is the price of the exceptional?
Luxury real estate: what is the price of the exceptional?

Acquiring or selling a prestigious, historic or luxurious property requires specialized expertise and… a well-stocked address book. You don’t even have to go abroad to discover properties with a unique cachet, because Belgium is also full of unsuspected treasures.

Mansions, castles and other exceptional properties are not sold like a traditional house, say Maximilien de Broqueville and Philippe de Borrekens, of Eurimobel, a real estate agency specialized in the valuation of exceptional properties, with particular expertise in the agricultural sector.

“The rules that apply to traditional houses or flats cannot be applied here. The valuation of a property usually takes into account the price per square meter in the area, but prestige real estate is not subject to the same market fluctuations. The valuation of a luxury property must therefore be viewed on a case-by-case basis,” said de Broqueville. “Luxury properties are also part of a rather ‘reactive’ market: the potential clientele often already has a certain affinity with real estate and can demonstrate very quick decision-making skills.”

“Estimating the exception is not an exact science,” adds de Borrekens. “Each estimate is based on the property or domain, the potential and the customers. The exceptional property market also implies a more complete service, a highly personalized approach and an extremely complete file. It also requires knowledge of special forms of long-term rental, such as long leases.”

Leasehold is the right to have full enjoyment of someone else’s real estate for a minimum of 15 years and a maximum of 99 years. The leaseholder, the person or company that acquires this right, usually pays a fee for this (the so-called ‘canon’).

The valuation of an ordinary house is completely different from the valuation of a luxury property.

Record temperature

Sometimes the valuation of castles and other exceptional properties also needs to be revised based on market reactions. Once the price has been set and the property has been put on the market, it’s time to take the temperature. But it will inevitably depend on the interest shown. Although there are also some levers to achieve a successful sale. Philippe de Borrekens points out, for example, that a completely vacant building is not suitable for site visits. “That is why we insist that the furniture remains, so that the building retains its soul. An empty house is much less attractive than a furnished one.” Many new owners also turn the outbuildings into an opportunity to renovate guest rooms, offices or banquet halls. After obtaining the necessary permits. Buildings with outbuildings therefore often have an advantage.

The article is in Dutch

Tags: Luxury real estate price exceptional

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