Villa Leopolda on the South Coast of France in Cap Ferrat was once hailed as the most expensive property in the world. Fast forward a little over one year and the price tag of this once former glorified real estate has not only plunged, but dive-bombed right down to near nothing – compared to the previous price tag of $750 million.
These days it is estimated that Villa Leopolda is worth a mere $40 – $50 million, thanks to tumbling prices in the wake of the global recession, according to Alexander V. G. Kraft, CEO of Sotheby’s International Realty. He said: “For trophy properties it used to be a question of how much someone was willing to pay. They would come quietly onto the market â€“ they would be marketed under the table. This system really has totally collapsed. Buyers willing to pay anything like those sums just don’t exist anymore.”
The Telegraph reported that in many former “wealthy” real estate areas “panic sales” were now more common than anything else.
As you can probably remember, we reported about Russia’s richest man Mikhail Prokhorov back in February and how he had reportedly agreed to purchase the Villa for $750 million but then backed out of the deal, while forfeiting his $55 million deposit.
Since the failed transaction of Villa Leopolda in that sale, the estate has not been re-listed on the market. As with the general real estate market worldwide, prices of luxury properties are crashing hard and fast because wealthy buyers have plenty of bargains to choose from and are not buying high-end these days.
These so called throphy properties will be directly related to the rest of the market, namely a lot cheaper.
Director of Sotheby’s International Realty in Cap Ferrat, Peter Ilovsky was overheard saying: “Owning a property in Cap Ferrat is like having a Picasso. It’s certainly better than placing the money in a Swiss bank.”