Luxury Real Estate

Courtesy of Rimontgó

 Hong Kong was the focus of Asian real estate in November as sector decision makers and professionals from the region – and across the world – converged on the city during the MIPIM Asia convention. Rimontgó was represented by both its principals, José and Antonio Ribes Bas, an indication of how important this region is becoming in the international luxury property market.

“We don’t expect Asian buyers to replace European ones in our core markets of Valencia and the Costa Blanca,” said José Ribes, “but it is clear that Asia, and the Far East in particular, is becoming an increasingly important player in international luxury real estate.” Mr. Ribes emphasised that there are two currents presently magnifying the importance of this new market: “The first is the fact that countries like China have been experiencing rapid growth for some time now, and as a result the number of industrialists and businesspeople with sufficient means to invest in luxury real estate on a global scale has grown rapidly both in quantity and in terms of their acquisitive power.”

In addition, he cites the current downturn in the developed economies, where wealth growth has slowed and those with the means are for the time being more cautious than their counterparts in Asia and other booming parts of the world. “The global slowdown will temper growth in the newly emerging economies as well, but even so wealth is growing greatly here and those with it have the confidence to spend it. What’s more, they have the foresight to look beyond their own immediate geography and recognise the great investment opportunities that are available in large parts of the world today.”

During the event the Ribes brothers met with representatives of the Spanish consulate, the Sino-Spanish Chamber of Commerce and representatives of other institutions aimed at promoting trade and investment. “It was highly instructive,” said Antonio Ribes. “Asia is very much in tune with what is going on elsewhere in the world, and this awareness comes both from the public and the private sector.” Indeed, the bulk of the professional participants were property experts, developers and investors from China and the Far East, but the event also attracted fellow industry specialists from South East Asia, the Middle East, Europe and former Soviet republics in Central Asia.

Emerging markets for commercial RE investments

Though many were aimed at attracting investment and buyers for real estate projects within buoyant markets such as China, India and Azerbaijan, there was also a significant body of investors looking for opportunities in other parts of the world. “Since many of the best deals are currently to be had in more developed markets such as Europe and the US, this is where much of their attention is focused,” said Antonio.

“What we are finding is that in addition to investing in local commercial and real estate projects, an increasing number of successful entrepreneurs in countries like China, Korea, Vietnam, Singapore and India are also looking to expand their portfolio geographically to include especially commercial RE opportunities in Europe and America.” The latter includes office complexes, retail and entertainment facilities such as shopping malls, cinemas and theme parks, but also golf courses, resort hotels, marinas and wineries. “In addition there is an interest in land, both for future development and with a focus on timber, agricultural and mining resources.”

With this in mind Rimontgó will be looking to further develop its commercial division in the coming year to offer a more independently focused and specialised service to international clients that wish to avail themselves of the enticing investment opportunities now available. “Through our international networks we can offer serious investors not only a wide range of different product types but also in a broad range of countries including Spain, Italy, the UK and the USA,” says José Ribes, whose firm will be building on its existing expertise in commercial, retail, resort and vineyard investment consulting. “In an ever-changing market it is important to be aware of the latest trends, and to know how to respond to them. Our Asian trip confirmed our impressions about the potential of this growing market. We also made many valuable contacts there, but above all it has spawned an exciting new project that will act as a valuable complement to our existing activities and initiatives.”

Photos courtesy of MIPIM_World.