Prime begins when the math ends
Prime begins when the math ends
By Daniel Caprarin and Cristina Ocaña
In the real estate market, it is well known that the value of properties is usually determined by considering aspects such as location, age, size, qualities and technological features. However, there is something else, something subjective but fundamental, that can substantially increase the value of a property: its soul or identity. Identity: beyond numbers
When we talk about a home's identity, we are referring to the elements that distinguish it from other properties, giving it a "brand", with a unique style and character. Like a luxury brand, a prime home must offer something special that is not easily found in other properties. These elements may include the architectural design or the quality of the materials used in its construction... in short, those exclusive details that make the property unique and desirable.
And while a home's prime identity may be difficult to measure accurately, its impact on property value is undeniable: buyers are willing to pay a premium for those that offer a combination of design, quality and exclusivity not found in conventional homes, just as consumers value high standing brands that offer not just a product, but an experience and status.
In the image, splendid property in the Golden Mile, Salamanca neighborhood.
The value of the priceless.
Affluent buyers are sophisticated and demanding, with very definite preferences. Although they have flexibility in their budgets, they are not willing to pay just any price without making sure they get exactly what they want, valuing features that go beyond a simple price per square meter calculation.
Thus, at Knight Frank we have observed that homes that reach high prices tend to share certain distinctive attributes, which give them that "identity" or "soul". The location in classic buildings is the first of these, since the history surrounding these properties gives them a special identity. In addition, the complete renovation or condition of the building is often decisive, since the quality and modernity of the construction can be key aspects for buyers. And, of course, high ceilings are highly valued, as they not only expand the sense of space, but also allow for the display of works of art, something highly sought after by this client profile. Natural light and privileged views are also fundamental in the requirements that give prestige and value to a property, as they create a unique atmosphere and elevate the experience of inhabiting the space. Other intangible aspects, such as the lifestyle of the area and the neighborhood environment, can also contribute to the identity of a property.
The unique identity of each property, forged by its design, quality of materials and other distinctive attributes, plays a crucial role in determining its final price.
Both internal and external elements influence the final price of prime housing. In addition, the growing international appeal of Madrid, as a city and brand, makes these non-mathematical factors increasingly relevant.
It is clear that in the residential market prime value goes beyond simple numbers and mathematical calculations. The unique identity of each property, forged by its design, quality of materials and other distinctive attributes, plays a crucial role in determining its final price. Discerning buyers value these intangible aspects as much as traditional criteria, although it is important to note that the value of prime homes is supported by market factors that consider all of these aforementioned variables, including non-tangibles.
