How the Super Rich Are Developing Their Own Real Estate Markets

In the past, the most expensive housing in any major city would be connected in some way to the economics of the city itself. If the general market was weak, the high end was also weak. If the general market was strong, then the high end was strong. But increasingly in cities like NYC, Aspen, Dubai, Miami, and elsewhere, the ultra high end exists in a different market, where the rich splash around money at levels which are completely disconnected from the local environment. At these levels, the ultra-wealthy are engaging in a global game of one-upmanship, where a higher price tag, perversely, can make a given property even more tantalizing. On this episode we speak with Hiten Samtani, founder of ten31 Media, which focuses on real estate, about how this market has developed. We talk through the deals, brokers, the buyers, and the general economics of this ultra-premium tier. We also discuss the rise of branded condos — or those with the Mercedes or Porsche imprimatur — and how they’re reshaping the real estate landscape. This transcript has been lightly edited for clarity.

Key Insights from the pod:
Why all the multi-million dollar luxury towers? — 4:37
Who’s developing these properties? — 6:52
What are the profit margins on property like this? — 7:55
What’s in a multi-million dollar property on the market? — 10:22
Growing wealth through real estate development — 11:53
Why do billionaires own so many homes in the same city? — 12:37
Are luxury real estate markets cyclical? — 14:22
How much of luxury real estate is rule of law arbitrage? — 16:16
How are brands changing luxury real estate properties? — 19:29
Effects of luxury development for local residents — 23:58
How big is the global luxury real estate market? — 25:38
What are the risks to the luxury market trends? — 29:07
Can crypto money affect these markets? — 30:45
What is the brokerage community in the luxury market? — 32:20
What’s the next trend in luxury real estate? — 33:38

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