Perlin Gentil, the Head of Sales of JamesEdition, talked to CASAFARI about how the luxury real estate market is since 2020 and what the luxury customer looks for. He also explained what differentiates JamesEdition from the competition and the company’s Freemium model, in a very open and informative interview.
Let’s see what he had to say!
1. How does JamesEdition differentiate itself in the luxury real estate market?
We are a marketplace which is a bit different from the general portal. We were founded in 2008 and for the past 15 years, thanks to our focus on items across the whole luxury lifestyle spectrum, we have managed to build a brand that attracts a very large community of international Ultra- and High-Net-Worth customers.
Our traffic today is coming from all over the globe (40% North America, 40% Western and Northern Europe and 20% from key regions such as Asia, South Africa, Australia, etc.).
2. How would you describe the behavior of the market, from 2020 to the present day?
Covid had an exceptional impact on the luxury real estate markets in most of the countries in Europe and North America during the last two years and brought an unprecedented volume of transactions for premium and high-end properties.
After a period with limited properties for sale, it seems that the market is now normalizing, meaning a fiercer competition to find buyers and sellers. Marketing will play a key role in the next 12 to 24 months.
3. How many properties were traded each year (from 2020 until today)? Can you give predictions for 2023?
Data specifically for the luxury segment across all our markets is scarce, but what we have seen is that initially we had a significant increase in transaction volume of luxury properties in more rural areas – especially in the US vs Europe, which was slower to react due to cross-border restrictions.
Cities were lagging behind as people were looking for both lifestyle changes and more space. Now we see this trend reverse. Demand for apartments, penthouses, and condos in cities such as New York, London, Paris is coming back.
As we believe 2023 will be a normalization of the market, we probably are looking at transaction volumes closer to pre-Covid – 2018-2019 levels. What we need to remember though is that even if transaction volumes fall, prices have stabilized on a higher level, so the total transaction values will still increase in comparison.
4. In which countries are you operating?
All over the world. We have properties for sale in more than 120 countries and more than 12,000 real estate businesses already work with us.
5. We noticed you’ve started to work on a “freemium model”. What is your goal? And how was the market acceptance?
Our traffic has multiplied by 5 times over the past 24 months and we have around 1.5 million unique buyers coming each month to JamesEdition. We do not always have enough properties available which can be frustrating for buyers. This is why we decided to welcome any agency that has qualified listings to join our portal.
There is however still a preference for our paying clients and any agency joining us needs to take into account the competition in their specific market. Many agencies who joined JamesEdition on the free level understood the quality of the leads we deliver and rapidly moved to our paid subscription to generate more leads.
6. What details do customers value most when looking for JamesEdition?
High-end resolution pictures, a luxury presentation and an international listing selection.
7. What does a luxury market customer value most when buying a home?
This varies a lot depending on the market and the region. But one thing that will always prevail is the personal approach of the agency/agent. An agency should always tailor its approach to the needs of high-net-worth clients.
8. What are the nationalities of your target?
The top in-demand markets are the US, Spain, Portugal, Italy and France. Among buyers in all these countries, Americans are always in the top three.
This year has been especially exceptional with the Americans not only looking for an attractive lifestyle in Europe, but also the USD/EUR exchange rate has influenced a lot. This last quarter, more than a third of all buyers on the site came from the US.
Thanks for sharing all about JamesEdition’s business with us, Perlin!