BARNES, the need for Global Support

Lifestyle is made up of myriad factors composed of material and particularly intangible assets that are both evident yet ungraspable. For HNWI and UHNWI, luxury real estate is only one of the many aspects of this lifestyle, guaranteeing a unique day-to-day experience.

Above and beyond luxury real estate, wealthy families have an overall vision when it comes to the organization of their day-to-day life. After acquiring their primary residence in a renowned international city, they will build up a portfolio of secondary residences that meet practical, emotional and financial criteria. The most entrepreneurial among them will then combine passion and an entrepreneurial spirit, investing in properties that allow them to live out these passions such as hotels, hunting estates, horse farms or vineyards. Investments in many other areas of passion such as art, yachting, sailing and collectible cars combine lifestyle with an entrepreneurial spirit.

“The age of yacht and superyacht owners continues to fall. Across all continents, we are witnessing the arrival of a new clientèle, composed notably of business leaders in their 40s.” ERIC ALTHAUS, CEO, BARNES YACHTS

YACHTS, OR THE CONTINUATION OF A DREAM

There are numerous cross-overs between yachting and real estate. A yacht can, in fact, be seen as a “mobile” second home by the sea. This mobility enables all seasons to be taken advantage of and is also one of the foremost acquisition criteria. But the common features do not stop there. Like residential real estate, the yachting market may involve a financial profitability strategy based on rental. Using a relatively simple calculation, it is considered that 10 weeks of rental cover the annual costs of managing and maintaining a yacht. This solution is opted for by 80% of yacht-owners. So a yacht can be seen as a way to make money. Firstly by renting it out regularly, particularly for prestigious events. Secondly, just as one would do with a villa or an apartment, by acquiring a run-down property to bring it up to the latest specifications, which can yield significant capital gains provided that the operation is carefully prepared. Although the luxury yachting industry is essentially European, the number of buyers is on the rise in the US and particularly in Asia. For example, naval architect Philippe Briand (Vitruvius Yachts), designed the club-house at The Pavilia Bay – considered to be the finest real estate project in Hong Kong – drawing upon the aesthetics of yacht design. This takes us full circle, as, at the same time, the interior layout of yachts is increasingly based upon the codes of luxury real estate.

“Yachting represents the ultimate in luxury. Imagine a villa designed in accordance with the dreams of its owner, that can be moved at will by the owner anywhere in the world.” PHILIPPE BRIAND, NAVAL ARCHITECT

 

LUXURY REAL ESTATE: AN INCREASINGLY DIVERSE PORTFOLIO

In addition to the usual apartments and mansions, entrepreneurs are investing in a broad range of high-end properties, with a view to asset diversification that provides a certain degree of profitability.