“Luxury is the absence of vulgarity”, a phrase attributed to Coco Chanel, describes what the high end market looks for regardless the price of the good or service. In the real estate market, lack of vulgarity requires the identification of unique characteristics in properties or services, aspects that differentiate them from the generality. In this goal of differentiating the product and consumer experience, technology has enormous and growing strength.
In a survey among Nest Seeker’s clients and agents, luxury brokerage firm recently established in Portugal but already known for its TV series on Netflix, around eighty percent of international clients looking for residential property in Portugal above 2 million of euros consider the technological aspect offered by the property one of the three most important characteristics when deciding to purchase a house.
Since the term PropTech is applicable to several sub-categories, it will be important to segment the degree of importance of the main ones for those looking for a luxury property in Portugal.
First comes home automation, the ability to manage various features of the property remotely, such as opening or closing doors, controlling its security system or air conditioning.
Secondly, there is a growing concern with the energy performance of the property, as well as, for the first time, the widespread interest in making the asset self-generating its own electricity without carbon emissions. This wave of awareness arises among millennials, supported by the goals of climate neutrality until 2050.
Thirdly, recreational technology or technology related to physical well-being such as audiovisual equipment or air purifiers in vertical gardens.
This reality, added to the exponential increase in the use of technology to work and communicate remotely, has had a significant impact on the requirements of consumers in general regarding the technological characteristics of properties. In the luxury segment, the standards of demand are generally higher, but there are service providers and promoters specialized in meeting these high standards. This symbiosis guarantees technological development, in a growing demand and supply that no longer foresees a future without the presence of advanced technology, whether to improve their quality of life or their work performance.
In this analysis, we can then state that whether in new construction, as in reconstruction or remodeling, to meet the expectations of segment A customers, a property must be equipped with technology that allows remote access to a home automation center to control security and safety features. comfort in the house. Have a technologically improved energy performance, if possible that it produces its own energy without emission of carbon or other polluting agents. To enhance leisure and pleasant experiences through the use of state-of-the-art technology in household appliances capable of ensuring safety, speed and quality of communication, physical and mental well-being, in short, quality of life.
PropTech sees in the global luxury market an opportunity to exceed the expectations of these highly demanding customers with strong purchasing power. Exceeding expectations and providing unique experiences, the objective of turning vulgarity into singularity becomes real. Real estate technology is making that goal a daily reality, across all PropTech categories. Thus, it gained its unquestionable weight in the international luxury market, as a decisive factor for the completion of a real estate transaction.
|Jorge Próspero dos Santos
International Real Estate Manager
|The Real Estate ecosystem needs unity in VUCA times.|