Exchange Of Luxury Homes: The luxury real estate sector is experiencing an unbeatable moment, with business ideas as varied as they are profitable.
The luxury real estate sector is experiencing a great moment. The pandemic has served many entrepreneurs and billionaires to increase their accounts, which translates into greater investment and the emergence of new business ideas related to luxury homes, a market that has great growth prospects.
Proof of this is the new customer profile that is making a strong entry into the luxury real estate sector. Against the traditional buyer, the new clients in this sector are young people between 35 and 50 years old, closely related to the technology industry, who have large amounts of money to invest.
In this context, the luxury real estate sector leaves great business opportunities to undertake, even if there is not much initial investment available: advice to increase the value of a home, real estate brokerage, asset management… The possibilities are as abundant as creativity.
In addition, technology is one of the fundamental legs for growth in the real estate sector in the middle of 2022, as well as the ability to adapt already proven models to a market – the luxury one – that has fewer customers, but a much higher average ticket. then the “normal”.
The exchange of luxury homes, a new business in the luxury real estate sector
Thus, companies are looking for new activities within the real estate sector that will allow them to gain a foothold in the luxury market. This is the case of ThirdHome, a platform that seeks to become a luxury home exchange club, which has just opened its first office in Spain.
In reality, their business model is not as complex as it may seem. Its platform searches for luxury second homes with a touch of personality and puts their owners in contact to exchange them for a period of time. To access its community, it is necessary to pay 295 dollars a year, in addition to a fee of about 500 euros each time a trip is made.
It is a really low price, taking into account that “the price of staying for a week in these houses could be around 15,000 dollars”, they explain from the company itself. As the only requirement, the firm establishes that the homes have a minimum value of 500,000 dollars, which begins to be considered within the luxury real estate segment.
The firm’s catalog has properties spread over 98 countries, including a 19th-century castle in Scotland or a private island in Belize . “What interests us are the weeks in which these houses are empty, either because their owners are not going to occupy them or because they have not been able to rent them,” they explain.
Other Businesses In The Luxury Real Estate Sector
ThirdHome’s proposal demonstrates the great activity registered in the luxury real estate sector in recent months. In this context, another trend that triumphed decades ago in Spain is now returning to focus on the niche of customers with greater purchasing power: timeshare.
In this context, the case of Pacaso stands out, a company that has announced its landing in the most exclusive locations on the Spanish coast, as well as other premium locations throughout the country. Its business model is to buy luxury real estate, with a price of more than two million euros, to reform them and sell exploitation shares. Specifically, each property has a maximum of eight participations, so users who opt for luxury timeshare could use the home about 44 days a year.
These are far from negligible ideas, taking into account the great moment that the luxury real estate sector is experiencing in Spain. In 2022 alone, property sales exceeded 256 million euros in the Costa del Sol area, three times more than in 2019, the year before the pandemic. Thus, you get to pay 25,000 euros per square meter on the beachfront, something that has to do with its good climate, the wide range of golf courses, or the presence of large restaurants and luxury nightclubs, among other factors.
