Luxury apartment

The von der Heydt villa in Berlin-Tiergarten

The Gable Mansion from 1885 in Woodland / California

Luxury apartment (or luxury property ) is an apartment or residential building belonging to the luxury goods category , the quality of which is well above the standard and price level of common residential properties . The opposite is the social housing .

General

A residential property does not become a luxury property just because of its high purchase price , but only because of other factors. A luxury apartment is only considered if the apartment differs significantly from the usual standard in terms of size and design and is therefore classified as a luxury . The equipment must therefore offer a level of comfort that exceeds the standard . These include garden , air conditioning , loggia , garbage disposal , sauna , swimming pool , terrace or whirlpool . Luxury apartments usually include bungalows , mansions , country houses , loft apartments , maisonettes , penthouses , city palaces or villas . They stand out clearly from standard properties in terms of their design , architectural style , formal language , location ( villa colony ) and interior design . The better residential areas , on the outskirts of the city center, near green areas, are reserved for the expensive luxury apartments, villas and condominiums. While the premium segment is characterized by a high price and good quality, luxury living, on the other hand, should be defined from great rarity to uniqueness.

Legal issues

Luxury apartments are available as condominiums or rented apartments (mostly furnished or unfurnished), and this also applies to one- or two-family houses. There are no content-related differences to the other apartments in the land purchase agreement or rental agreement . The luxury apartment is not suitable for simple private individuals in terms of construction, location and interior design, because tax law makes it a hobby .

In Luxembourg , luxury apartments must comply with the law on housing leases of September 21, 2006.

economic aspects

On the housing market , luxury apartments form a market segment with a high-price strategy of the providers . When it comes to luxury goods, real estate plays the most important role in the luxury needs of the rich. The business with expensive luxury apartments is growing in London, Munich, Frankfurt, Düsseldorf and Cologne. They form the market segment for income or wealth millionaires . This is due to their very high purchase price and the high maintenance costs, which should not exceed 30–40% of net income in the context of the private liquidity calculation . The maintenance costs of luxury apartments are significantly higher than for standard apartments. The large living space usually requires domestic staff , and the additional costs are higher than for standard apartments because of the energy costs .

The purchase prices are based on the marginal utility that the wealthy buyer is just about willing to pay. The value of the location exceeds the capitalized earnings value wherever a change in use in line with the market (e.g. offices instead of apartments), greater utilization (larger living space) or other types of apartment (luxury apartments instead of standard apartments) can achieve a higher rental return . Luxury apartments with above-standard comfort always belong to the prime location segment within the residential area .

Luxury apartments belong to the expensive luxury goods, i.e. superior goods , for which the demand increases disproportionately with increasing income . The price elasticity is very low, so that the - financially strong - consumers do not or hardly react to price changes. No immanent saturation limits are recognizable for them; They also buy regardless of the economic cycle in the economic crisis .

In 1847 Friedrich Engels took the view that the housing shortage could be partly overcome by expropriating the luxury apartments of the ruling class.