Even The World’s Priciest Homes Drop in Value
Monday, November 24th, 2008 
Posted by OP-Mall in 
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.
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This entry was posted on Monday, November 24th, 2008 at 12:20 pm and is filed under Luxury Property. You can follow any responses to this entry through the RSS 2.0 feed.
6 Responses to “Even The World’s Priciest Homes Drop in Value”
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property in Spain Says:
November 26th, 2008 at 2:59 pmPrices in Spain have reported to have dropped by up to 40% in some places (mainly the second home market).
For UK owners of Spanish (or indeed any overseas) property should consider renting. The income in Euro is more for their money once you convert it back to sterling.
The number of enquiries medhead.com are receiving for long term rentals has increased.
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Tenerife Property Says:
December 3rd, 2008 at 12:34 pmCorrections to overbuilt areas was always on the cards and a lack of true pricing in Spain (owners tend to name their price) hasn’t helped the seemingly huge price drop. In some areas, such as Tenerife, where building restrictions have been enforced, little if any drop in value has occurred according to house price statistics.
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Tenerife Property Says:
December 3rd, 2008 at 12:35 pmDid that post?
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property in spain Says:
December 4th, 2008 at 12:04 pmwould that be a drop in asking price or actual selling price.
i wish there was some way to review the difference between what a property has been on the market for compared to the actuial price achieved.
I have noted that in times of crisis when buyers are offering ridiculous prices many asking prices are increasing. the logic being that buyers offer a % lower than the asking price, the higher the asking price the higher the offer (in theory), in reality, this si ridiculous but hey, if it works… -
Tenerife Property Says:
December 4th, 2008 at 12:47 pmYes, that’s always been a conundrum - the difference between asking price, officially registered selling price and the key unknown figure of actual money paid could be as wide as 50%.
And i agree, it’s common practice to inflate a price in the knowledge that you’ll accept a lower offer. It reminds me a little of furniture store sales - “50% off, now just 699!” - when previously the item had never had a value of more than 699 in the first place, but for the buyer they (mostly) believe they have had a great deal.
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property in spain Says:
December 4th, 2008 at 5:18 pmGood point - does anyone fall for it though?
