ESV George Okwudili Endelyn
In developed economies and developing economies of the World, high net-worth individuals are the major drivers of the luxury real estate market. This market segment controls about 10% of the market economic activities, yet, it is highly prioritized because of the category of people it serves and of course characterized by high end properties. Even in the midst of domestic and international economic challenges, the luxury real estate market place is still experiencing a boom period, and this trend will continue to be in place over time.
With the rising affluence and disposable income among the well-to-do members of the society, they have the money to invest in high end properties which is a gold mine and a most reliable source of investment with high returns over time. The risk factor of investing in the luxury real estate market segment is very minimal when compared to other market segments.
Real estate market professionals who understand the needs of these high net-worth individuals and cash on the growing market trend will profitably remain in business. Professionals in this unique segment of the real estate market space must be ready and professional enough to provide tailor-made real estate services to the investors and consumers that have invested heavily to enjoy luxury market services. In the coming years, these trends will continue for top-tier real estate marketing and consumption.
Another factor responsible for the luxury real estate market is the advancement in technology, which has changed the entire real estate market place. The luxury real estate market place has been well impacted by advancement in technology especially in the areas of marketing communication, online media exposure, and online property listing. These channels make it easier to connect the market target and close deals within the online space.
Unlike other market segments in the real estate space, shortage of housing does not exist in the luxury real estate space, only high net-worth individuals are market players in this segment of the real estate business. Real estate services like valuation, agency, sales and marketing in this space are not only lucrative, but mouth-watering transactions for all professionals in the real estate value chain.
In developing economies like Nigeria, certain schools of thought have argued that unchecked corruption among Nigerian politicians and business men are responsible for the growing luxury real estate market in Nigeria. They argued that in the midst of a negative Nigerian economic trajectory, luxury real estates in Nigeria keep growing. The Nigerian anti-draft agency, the Economic and Financial Crimes Commission (EFCC), in a recent publication, traced most Nigerian stolen wealth to investments by Nigerians in the real estate sector both home and abroad. But this is not to say that all investments in luxury real estate are stolen funds. Then, the onus is on professionals in the real estate market space to courageously drive the Know Your Customer (KYC) policy and carry out their due diligence before engaging in luxury real estate market transactions.
In all, the luxury real estate market will continue to grow and keep changing the real estate landscape. Is a global trend that has come to stay and will keep providing tailored made luxury services. As the quest for luxury homes continues to grow, the development of luxury homes will continue to spring up and the onus is on professionals in this market place to keep working in line with the global best practices.
ESV George Okwudili Endelyn is a registered Estate Surveyor and Valuer. He is the Principal Partner of George-Lyn & Co, a firm of Estate Surveyors and Valuers. He sends in this piece from Awka, Anambra State.
