Last week we featured a post on the World’s Most Expensive Homes which saw us salivating over some pretty nice properties. But even in the world of glitz and riches not everything is as smooth as it seems. The truth is that most of the world’s most expensive homes are cheaper now than ever due to the global credit crunch and economies.
The richest people in the world also feel the pinch and many are forced to act by either taking their property off the market or even reducing the price of it by millions in order to sell.
You might remember Trump’s Maison L’Amitie that netted him $100 million but also benefited the buyer Rybolovlev some $25 million in the process. Not a bad saving when you look at the figures.
Another issue is the current hit to the British pound for the wealthy rich in the UK. Due to the conversion rate fall, many of the more luxurious homes fetch a lot less now than a year ago. This of course is good for overseas investors with strong currencies.
Matt Woolsey’s quote on, Forbes.com says it all and doesn’t leave much room for hope.
“It’s going to be an ugly 2009, and sellers of the world’s priciest properties are getting the message.”
Celebrities such as Prince Bandar of Saudi Arabia are affected by this global downturn. Last year he removed his $135 million Aspen ski lodge from the ranks of available listings. And last month Marty Zweig, an investor took his $70 million Pierre Hotel off the market after it sat there for four years.
The stories go on and on and we are sure we haven’t see the last of it.
This of course offers great opportunities to those with plenty of cash flow. Properties like the $90 million French Riviera estate on Cap Ferrat are a steal when you look at the 11 bedrooms and the total of 29,000 square feet of space with unsurpassed views over the Mediterranean waters.
Despite these once in a lifetime listings, many buyers are waiting for the market to drop even more. Especially in cities like London and New York, this would eventuate in massive savings for investors.
All in all, it seems that luxury home prices are down by 20% since last year and expected to fall a further 10-15% until 2010 when the market bottoming out.