In the demanding realm of luxury real estate, each transaction is much more than a mere sale or property acquisition. It's a highly personalized experience, demanding sharp expertise, finesse in negotiation, and unwavering dedication.

As the new head of marketing and communication at Luxury Places, I’m sharing my initial observations on the profession of luxury brokers. These reflections stem from my recent immersion in the field.

Unparalleled experience in the luxury market

Experienced real estate brokers in the luxury market bring much more than mere knowledge of available properties. Their expertise extends far beyond, offering a strategic vision that transforms each transaction into a success.

For 18 years, Luxury Places has offered over 200 high-end properties for sale in the Lake Geneva region, each meticulously handled to ensure maximum efficiency. The experience gained through several hundred transactions, surpassing 5 million CHF, provides the company's brokers with valuable insight to assess property value, determine optimal positioning for the best sale, and easily understand client needs.

Negotiation expertise to maximize results

One of the key skills of a luxury real estate broker is their ability to negotiate confidently and effectively. In a market where every detail matters, their negotiation expertise is invaluable. They know when to push for the best price for their clients and when to listen to understand the other party's needs. Their goal is to maximize results for their clients while preserving relationships and promoting fair transactions.

Here, negotiations draw upon all the usual business skills in real estate, but in a more nuanced manner. The broker plays a very central role and is essential for ensuring fair transactions.

Responsiveness is key

In the luxury real estate domain, responsiveness is a crucial element that can make all the difference in concluding successful transactions. At Luxury Places, brokers are committed to promptly responding to clients' needs and requests. Whether it's scheduling a last-minute property visit or addressing an urgent question, they are there to always provide attentive and responsive service.

This consistent availability not only ensures personalized support but also reinforces clients' trust in the expertise and commitment of Luxury Places brokers to their satisfaction.

Privileged access to a network of experts

By working with an experienced real estate broker, clients also benefit from their extensive network of trusted professionals, such as real estate lawyers, interior designers, and many others.

With Luxury Places, clients have access to a global network of trusted professionals. Since 2014, the company has been associated with Savills, a global real estate player, with 40,000 employees, including 200 research experts. It now has over 600 offices and associates in America, Europe, Asia-Pacific, Africa, and the Middle East. The group offers a wide range of specialized advice and transactional services.

It's not uncommon for a real estate transaction to involve not only one or two local brokers but also the presence of a foreign colleague accompanying their client in their move to Switzerland. Additionally, a bank and advisor located in the clients' home country often intervene, engaging their counterparts in Switzerland. Sometimes, a local architect is also required for renovation. Thus, it's common to assemble an entire team to ensure the smooth progress of the sale.

Commitment to excellence

Luxury Places offers much more than just real estate service. The company provides a tailored experience that elevates quality standards to a remarkable level, thus redefining expectations in the luxury real estate field. The brokers' commitment translates into unparalleled expertise, unwavering availability, and privileged access to a global network of trustworthy professionals.

Denise Gomes, Head of marketing and communication

2024 Outlook: trends and challenges in prime residential markets

At the beginning of 2024, the evolution of luxury residential real estate markets remains a major point of interest. In this regard, an in-depth analysis conducted by our partner Savills provides crucial insights into the trends and dynamics shaping these markets globally.

Analysis of 2023: inflationary pressures and subdued growth

According to the Savills report, the primary residential markets worldwide faced economic challenges and difficult market conditions in 2023. These factors contributed to moderate yet resilient growth performances in the luxury residential sectors. Despite economic uncertainty and higher interest rates, property prices and rents experienced growth, although this trend is expected to slow down in 2024.

Increase in rental prices exceeding that of real estate

In 2023, a notable trend was the significant increase in luxury rental prices, surpassing that of property values (+5.1%). This dynamic was primarily driven by the scarcity of supply in many high-end rental markets, coupled with increasing demand. For instance, Lisbon stood out with a noteworthy rise in rents (averaging +22%), highlighting the challenges associated with the shortage of available rental housing in certain areas.

Outlook for 2024: mitigation of inflationary pressures

While we are well into 2024, economists, policymakers, and market stakeholders agree on a gradual mitigation of inflationary pressures. This should result in a "wait and see" environment for buyers and sellers, characterized by sustained high-interest rates over an extended period and moderate global economic growth. Despite these conditions, prime residential markets are expected to maintain their resilience, with rental growth once again outpacing that of property prices.

Challenges and opportunities ahead

Global economic challenges, including demographic changes, urbanization, and political uncertainty, will continue to shape prime residential markets in 2024. However, there are also opportunities, including the potential to stimulate activity in prime property markets through potential central bank interest rate cuts.

Analysis of the luxury real estate market in the Lake Geneva region

Lake Geneva market, covered by Luxury Places, is not immune to major international trends. The pandemic years, characterized by negative interest rates and early signs of inflation over the past two years, have greatly favored the prime real estate segment. Since 2021, the number of transactions has doubled compared to 2019, in 2022, we observed  the beginning of a decline in transaction volumes, although prices continue to rise. In 2023, this downward trend persisted, bringing transaction levels back to those of 2019, with price stabilization that has not been impacted by these years of strong increases.

In 2024, caution is warranted. The residential market on Lake Geneva is largely influenced by a local clientele, which necessarily reduces the potential pool of buyers in the face of these impressive statistics. We anticipate stabilization, or even a slight correction in prices for certain types of properties. Foreign demand remains uncertain, and its evolution will be crucial for any potential market rebound.

Would you like to learn more? Read the full research "Savills Prime Residential Index: World Cities"

Source: Savills World Research - Savills Prime Residential Index: World Cities, "Turbulent times", February 2024