Advantages of investing in luxury real estate

02 January 2023

Luxury properties occupy an important place in the real estate market and the demand for this type of property has grown a lot in recent years.

In fact, many investors have prioritized this type of operation over the acquisition of financial products or investing in the stock market.

But why invest in luxury real estate and not in financial products?

Here are some reasons:

• Less risk. Investing in luxury real estate is quite safe, especially if we are advised by professionals and by a real estate agency specializing in this type of property that guides us and helps us choose a suitable property, on the one hand, and to negotiate a good price, on the other hand.

More stable market. The “volatility” of luxury homes is very low. This means that, despite crises and market fluctuations, the price of this type of property is usually stable. In addition, the possible variations are slow and predictable, so you will be able to decide the actions that minimally affect the profitability of the operation.

• Greater transparency. There is a third key factor for investing in real estate instead of financial products: transparency. When we buy financial products, we know who represents and advises us. However, behind these professionals and experts in the sector there may be other management figures whose interests are not alien. In this sense, investing in luxury real estate is clearer and more transparent, especially for people with a fixed income and who want to channel their investment objectively.

In addition to its profitability, other benefits of investing in a luxury property are:

  • Location. Luxury homes have excellent and enviable locations: they are in the best neighborhoods, next to points of interest, in strategic places, close to natural landscapes and with the best views.
  • Vanguard. High standing properties offer all the comforts and are equipped with the best technology. In fact, many of these homes are home automation. In addition, the latest generation materials and techniques are used in its construction to guarantee the highest efficiency.
  • Return of investment. Luxury properties are synonymous with great added value. That is, a greater possibility of recovering the investment in the short, medium, and long term, both through sale and rental.

Design and services. In addition to their finishes and careful design, luxury homes have outdoor spaces and some “extras” such as a swimming pool, guest suites, garage, green areas, elevators, etc. Many of them, in addition, are located in exclusive urbanizations with common leisure spaces and private security.

Is it a good time to invest in real estate?

Expectations for this type of investment are usually high, and for this reason it is common to wonder if it is a good time to embark on this type of project.

Regarding how to know if a real estate project is profitable, it depends on different factors.

In the case of luxury real estate, these factors are similar to those of any other investment in the sector, although with some particularities.

To begin with, it is necessary to assess both the type of housing, the chosen area, or the town where it is located, as well as the offer of similar properties, which is what will generate greater or lesser demand.

To analyze the possible economic profitability of investing in high standing real estate, we must also pay attention to the global macroeconomic situation, even though we know that luxury housing is an asset that is much less exposed to economic problems.

In addition, it must be considered that the rental offer for this type of property in Valencia is very low. Especially when it comes to villas on the outskirts of the city, close to prestigious international schools.
The high demand for this property profile, partly due to Valencia’s position as a capital that provides a high quality of life, makes this type of real estate investment for rent profitable and safe.

How to invest in luxury real estate with Monserrate Inmobiliaria?

In this sense and with the aim of guaranteeing a safe investment, from Monserrate Inmobiliaria we will advise you on the trend of recent years, the most outstanding forecasts or the behavior of prices in the geographical area where the property is located.

Buying a luxury home can be a great investment, with many benefits and great profitability. For this reason, it has become an attractive option not only for large funds, but also for investors who previously deposited their savings in other types of assets.
You can request information without obligation, and we will explain other advantages of investing in luxury real estate with us.

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