The one event luxury property investors need to attend

Despite uncertainty gripping the global markets, the demand for luxury property has never been higher. Whether it’s retail, hospitality or commercial, the super-rich simply can’t get enough of high-end properties. With so much on offer, the key is ensuring the right buyer is connected with the right people to ensure they make a savvy investment. This is where the Monaco International Luxury Property Expo 2019 comes into play, connecting some of the world’s biggest investors with top industry talent.

An impressive year for luxury property

2018 was an incredible year for the luxury property market, specifically the high-end hospitality sector. In the last quarter, the global high-end hospital market was estimated to be in excess of US$83 billion.

Europe has also seen a particularly strong showing. Britain received €6.8 billion in investment, accounting for 30% of all European investment, while Spain attracted €4.8 billion, up 23% compared to 2017. Over the course of 2019, it’s likely that the hospitality sector alone could grow by four percent.

In the wider luxury property market, uncertainty even had its benefits. In the United Kingdom, a weak pound has lured wealthy buyers back to London. An EU buyer looking to purchase a property worth £1 million would have seen savings of £124,000, thanks to the sterling’s depreciation. This has caused a spike in London property prices, and international investors bought 57% of London homes in the second half of 2018.

Analysts predict a difficult, but not disastrous, year ahead

Despite a strong showing in 2018, many analysts are concerned that 2019 will be a difficult year for luxury property sales. The reason: global instability. Uncertain geopolitics, rising interest rates, punitive taxes and a looming recession threaten to create a perfect storm that could destabilize the luxury retail sector across the globe.

While Brexit may have provided a discount for buyers, it has also created deep uncertainty in Europe. In London specifically, it will raise questions over the long-term viability of the housing market. Increases in the British property purchase tax, known as stamp duty, has hampered the property market.

On the other side of the Atlantic, there has been a marked cooling of demand for high-end properties in New York. This has primarily been driven by stock market uncertainty and a housing market overpriced by as much as 10 percent. The 2018 tax reform also removed all tax incentives to purchase luxury property, deterring would-be buyers.  

These worries aren’t just limited to the property market. Goldman Sachs revised their 2019 growth forecast for the luxury sector to five percent, down from seven percent. These kinds of predictions might make for grim reading, but there is a silver lining—nobody is predicting a full-on recession in the luxury property market, just a slowdown.

This will lead to declining property prices that will tempt back certain buyers and the very best property brokers will be able to take advantage of this new reality. The only difference is that now they’ll need to work a bit harder for their commission.

Connections are key

The very best property brokers don’t just have an intimate understanding of the market but also connections to the right kind of buyers. The ability to connect properties to people is what defines the very best brokers. Wary buyers mean stiff competition and events like the Monaco International Luxury Property Expo (MILPE), held between 15-16 May 2019, will be a key event for brokers and buyers alike this year.

The MILPE is 14th in a series of B2C exhibitions dedicated to high-end real estate. ILPE events have been held in some of the world’s most iconic cities, including Cannes, Shanghai, Mumbai, Moscow, and Bangkok. The events are renowned for connecting high-net worth individuals (HNWIs) with top real estate opportunities.

The event is likely to bring together 200 developers and 1,000 individual investors from over 80 countries, but that is just the tip of the iceberg. The event is open to the public and specifically designed to lure in HNWIs. It is estimated that the top investors will have a net worth from €15 billion to €20 billion.

Building the right experience

The ILPE team takes great efforts to connect wealthy individuals with business leaders and CEOs of some of the world’s top property development companies. Their concierge service even organizes and schedules appointments with the developers to help build meaningful connections.

The event takes place during one of the most exciting seasons in Monaco and coincides with both the Cannes and the Monaco Grand Prix. This significantly increases the likelihood of high-value foot traffic and provides the perfect backdrop for an event designed to tackle the real problems facing the luxury property sector.

One of the biggest draws of the MILPE is the sheer breadth of industry expertise that will be on display at the event. Attendees and expositioners alike will be able to take advantage of discussions on some of the most pressing issues affecting the property market. This includes an in-depth analysis of all aspects of the real estate sector, including investment, development and the markets in general, all with case studies.

Taking a global approach

The luxury property market is very much a global business. The MILPE will feature exhibitors from 80 countries and showcase the very best property from some of the most desirable locations in the world, including major cities like London and Dubai, and island properties in the Caribbean, Hawaii and the Canary islands. The event also focuses on all aspects of the global luxury property market, including residential real estate, commercial real estate, and income generating real estate.

This international approach is the true value of the MILPE. It offers B2C exhibitors, investors, developers, and buyers the unique opportunity to make the global connections that will give them all the edge they need in an increasingly challenging global market.

2019 will undoubtedly be a challenging year for small and less experienced operators, but adversity always creates opportunity. The 2019 Monaco International Luxury Property Expo will connect top businesses, investors, and buyers, giving them the edge they need to thrive, no matter what the market throws at them.

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(Featured image by Boris Stroujko via Shutterstock)