Luxury Design in Fluctuating Markets
It’s no secret that the real estate market is a game of high risk, high reward.
As markets shift and tastes evolve, it’s often a game of numbers for builders and designers that bring projects to fruition. Today’s buyer demographic is changing. The influx of millennials into the “adult” world has created a drastic shift in which projects developers will be completing.
As much as they want to start their lives as homeowners, this demographic faces obstacles past generations never had to overcome. Crippling student debt and sky-high rent prices siphon off earnings, forcing first time buyers to defer their purchase for upwards of three years.
The Challenges of Luxury Real Estate Development
Sellers are faced with huge competition from new construction as many developers still seek out the remaining pockets of opportunity in a slowing market. On top of that, developers have to address the impending threat of a market downturn. There is a clearly defined cyclical aspect to the real estate market, but as of yet, no one has been able to pinpoint the exact moment when the shift happens.
Market watchers have been preparing for the inevitable “bust” for years already. Some use this fact to denounce “sitting on the sidelines” while there are deals to be made, but others say this is even more reason to play it safe.
In preparation for that inevitable turn, investors are making adjustments in, not only the type of projects they take on, but how they are investing. For the high-risk/high-reward crowd, the draw of the next great neighborhood is spawning projects in places like the Bronx.
Mezzanine debt investments and consolidated partnerships entice the security conscious. Other developers are making the switch to low-cost investments, preferring to spread out their capital over multiple properties, but low rent, low-quality holdings can create more problems than the diversified investment solves.
Not every condo can offer penthouse views, but you can make up for that by creating a breathtaking atmosphere.
Cost-cutting isn’t limited to low budget projects. Luxury builders are faced with the puzzle of reigning in expenses while dealing with a sophisticated and exacting clientele. Developer concessions are ramping up in both the buying and rental markets.
Amenities like gyms, spas, in-home massage services, even free flat screen TVs aren’t unheard of in the race to raise occupancy and beat out the competition. But these fads are predominately marketing ploys, flashy enticements to catch the eye of prospective buyers. The one thing that will never change, no matter where you build or how you finance, is the necessity of great design.
Luxury buyers demand perfection, and to entice them you need to go beyond their expectations with at least one show-stopping element. Not every condo can offer penthouse views, but you can make up for that by creating a breathtaking atmosphere with a luxurious layout, great materials, and wise styling.
When well-executed, design can even become a cost-saving tool in a developer’s budget.
Using Natural Stone to Attract Luxury Buyers
The best example of this is natural stone. High-quality natural stone, well-chosen and uniquely positioned, can be the tipping point for a prospective buyer. Incredibly versatile, stone can be used in the traditional aspects, marble countertops, marble showers, and the like. On the other hand, it can also be used to turn a home into a functional work of art through statement walls and innovative furnishings.
Design is the one thing that will turn a buyer’s head and tip the scales on that big purchase decision.
Kreoo has been working with builders and developers across the globe for over fifty years to create spaces that are in themselves works of art. Leveraging relationships with the top quarries around the world and decades of experience in “Value Based Design”, Kreoo and other competent companies provide higher value for the customer even while lowering costs for the developers.
The benefits of working directly with manufacturers like Kreoo are extreme. It can cut time and hassle from a restrictive schedule while at the same time offer higher quality products at a lower trade cost. Direct manufacturers can provide much more specific data, even sending samples from the exact block of stone being used.
Working with the designers at Kreoo directly, or in conjunction with local representatives, gives you unlimited access to the specific marble sculptors and quarry-men. This can help cut down on miscommunications and re-orders, and can literally cut lead time in half compared with many local providers.
Does your firm have an upcoming stone project? Comment below and tell us about it!