Luxury, exclusivity, prestige - Prime real estate and premium properties
In the real estate market, there is a lack of uniform definitions for a large number of terms and terminologies. Classifications are often used synonymously or subjectively; moreover, designations may be pronounced or common in different ways in different countries and may have different meanings.
At REALPORTICO, properties are classified as premium real estate if they are historic residential properties with outstanding features.
In this context, premium real estate is the overarching category of the entire upscale real estate segment. It includes further subcategories such as luxury property, exclusive property or prestige property.
Many historic properties such as castles and villas fulfill the status of a premium property, but in principle the term is independent of a year of construction or a specific property type.
How much does premium real estate cost?
Premium properties cannot generally be identified by a purchase price. A high purchase price is not automatically a criterion for classifying a property as a premium or prime property. However, purchase prices for premium properties are always in the upper price segment and can vary greatly depending on the region and demand.
On REALPORTICO, the price range for premium properties as of 2023 is at least EUR 550,000. However, the average price of a premium property is in the seven-digit range, with no upper limits.
For example, premium properties in prominent regions such as the Côte d'Azur may well be in the eight-digit range or even reach astronomical sums of EUR 100 million or more.
What characterizes prime estates?
A prerequisite for the classification of premium property is that a property is fully renovated and habitable without additional investment. In addition, premium properties are characterized by the following features:
- Location
- A coveted location is one of the most prominent requirements for a premium property. This generally includes a direct location on a lake, by the sea or, for example, in a fashionable district of a European metropolis that is known as the home of prominent personalities. Well-known locations for historic premium real estate in England include Kensington or Mayfair in London or Costwolds in southwest England. Other examples of sought-after locations outside England include the French Riviera, the lakes of northern Italy, and the Salzkammergut region in Austria.
- Interior/Design
- When it comes to amenities, the first thing to mention are the permanently installed facilities that are usually sold with the property. These include an outdoor pool or a private indoor pool, a wellness area with sauna, as well as intelligent smart-home functions and advanced security technology. Against the backdrop of climate change, contemporary and ecological energy efficiency with state-of-the-art technology is also becoming increasingly important for premium properties.
Some premium homes are also offered with full or partial interior decoration. The interior is of high quality and features renowned manufacturers, from large pieces of furniture to expensive floor coverings or stylish tableware. Customized one-offs, for example in the kitchen or bathroom, are also common in premium real estate. Teams of different professionals such as interior designers, kitchen designers, lighting designers or horticultural and landscape architects often work together on the furnishings to combine every detail into a perfect living experience. - Dimensions
- Premium properties are usually characterized by generous dimensions in all areas, from the size of the plot and garden to the total number of rooms. Even usually small rooms, such as the bathroom, are often generously proportioned. In addition to multiple bedrooms and guest rooms, multiple bathrooms are also common. Furthermore, they have additional rooms, that cater to individual interests and serve special functions. Examples include a home theater, a library, a study, a music room or their own wine cellar.
- Unique property features
- In addition to the characteristics already mentioned, there may be other features that are either truly unique or have extremely limited availability. Imagine that the property offers a breathtaking view that is only possible from that location. Or think of outstanding architecture that is exceptional and unique. It may even be a building that was not originally constructed for residential purposes, but has been converted into a luxury living space.
Premium, luxury, exclusive, prestige real estate - The (small) differences
- Premium real estate
- Premium real estate is the umbrella term for a range of properties that are characterized by features that are above the level of upscale residential real estate.
- Luxury property
- Luxury properties form a subcategory within premium properties. In addition to the existing features of a premium property, such as a prime location, the luxurious and high-priced aspect is emphasized or highlighted even more strongly in luxury properties. This can be seen, for example, in the use of particularly expensive materials or individual fittings, which often come from renowned and high-priced manufacturers and can significantly increase the value of a property.
- Exclusive property
- Some overlapping definitions with similar meanings exist for luxury and exclusive properties. Exclusive properties target a limited group of potential buyers due to certain characteristics, values or requirements of the actors involved, without explicitly referring to luxurious aspects.
- Prestigious property
- Additional prestige is added to premium real estate when it is associated with an exclusive history, significant cultural heritage, or prominent celebrity. Prestige real estate thus complements premium real estate with an additional reputation and (international) prestige.
Please note that some of the information, statements and explanations given here are based on data and experience available to us and do not represent any market-binding validity.
