How do you evaluate properties for their 'luxury quotient'?

The easiest card in the pack to flash to a novice is the ace of luxury and be it fashion or lifestyle or real estate you'd see every head turn at the drop of the word. To differentiate and ensure that the word luxury exemplifies dignity for a project or a product, brand custodians started exaggerating it using words like 'uber', 'aspirational', 'ultra' and 'high end' confusing target clients even more and most often misleading them. An established adage since decades is that a brand's composition is defined 'tangibly' and 'intangibly' and not merely by its physical assets. We can speak elaborately about the design, craftmanship, technical inputs, material used and brands but the intangible is what goes the 'extra mile' in ensuring that a project is 'differentiated from the other' offerings especially when it comes to 'services' and 'innovation'.

Another reason most developers (infact this seems to be the inevitable reason) call their projects or properties 'luxury projects' is only because the cost of land acquisition is extremely high which means with the cost of development, conversions (legal & liaising), operations, human resource, marketing & sales the project has no choice to be called anything but a luxury project. What demeans it then is that every project around it with more or less the same costing structure will also have no choice but to be 'termed' a luxury project and when a whole lot of luxury projects come up together they're either no longer luxury or there's a crash around the corner!

So how exactly do you evaluate the luxury quotient of a property? Is it by the tangibles, or the beauty of presentation done by a creative agency or the usage of fixtures and fittings or possibly by a combination of factors. While our methodology is proprietary I will be disclosing the 7 key parameters we use to evaluate and rank a luxury property and if you're paying the right value for what you intend to buy. What I will not be disclosing are the sub parameters, weight-ages and  qualitative issues that can offset or supplement the so called lacuna's or sublime advantages. If it ranks above 70 you're definitely buying a luxury property and between 80-90 a property that will escalate in its value of more than 35-50% in the next 2-3 years and yes between 90 & 100 almost double in value in the same period.

The first and foremost ofcourse is LOCATION (1) which also addresses the current & proposed DEVELOPMENT that is envisaged in and around the location. Another key issue in the location is the specific location of the project with respect to elements accentuating the project such as sea, forest or mountain FACING or SURROUNDING. The development could be as a part of the larger master plan inclusive of infrastructure, resource utilization (& leverage) and zoning. This is also the primary influencer of the price of the land.  The second parameter is the economic & political STABILITY (2) of the state or country in which the property is located (and largely its reputation or perceived branding by buyers). The next is the AVAILABILITY of LAND versus THE DEMAND (3) which is largely driven by economy fueling an influx of migrants or workforce. I will also put 'future demand' as a decisive sub parameter so that too many palm islands are not created with little or no economy supporting it's existence even if its just tourism.

The next few parameters are more related to how the property or project is enhanced in its intrinsic value by virtue of what is immediately in and around it such as the NEIGHBORHOOD and the profile of 'Neighbors' (4) , the AMENITIES (5) provided within and surrounding the property, the DENSITY & PROFILE (6) of the POPULATION  targeted (or currently being engaged) by the property developers/owners  and finally the Specific PROPERTY COMPOSITION (7) such as the Architect(ure), Age of Structure, Art collection, Interiors, Designer associated, heritage & other factors intrinsic to it. A parameter like 'amenities' is further ranked based on concierge services provided, club house, swimming pool, on call professionals available and access to services such as grocery purchases, maids, drivers, gardeners, cooks and even baby sitting. 

To summarize evaluating the luxury quotient of  a project (and bringing out a property specific evaluation docket) will be as important as a 'due diligence' or 'feasibility report' in the near future, if not now. This way the customer will not only get to know if they're actually buying a 'luxury property' but this can also be an eye opener to a potential developer or investor in understanding if they should get into luxury development unless they've understood the influence and ramification of these parameters on a potential clients 'buying decision'. 

If you would like to evaluate the luxury quotient of your project please feel free to contact us.

Author: I.Joseph Sam

Designation: Business Director, Tasteful Living

Email: jsam@tastefulliving.in

(Next in series: "Elements in designing a luxury property")