Valuation for exceptional properties: beyond profitability standards
Exceptional properties are unique and very heterogeneous in nature, and therefore must be valued on a case-by-case basis. These properties belong to the world of luxury. As a result, when it comes to purchasing, subjectivity dominates over profitability criteria. 70% of the clientele is international and is sensitive to the scarcity, exclusivity, location and exceptional characteristics of each property.
In this niche market, the liquidity of assets is uncertain with generally longer sale processes. The valuation of an exceptional property must therefore be particularly thorough. Our expert valuations are frequently requested by banks for this purpose, as our valuers have a solid understanding of this confidential market, its evolutions and the needs of clients.
Our expert’s point of view
EMMANUEL GOUBET
Regional Director (South East) specialised in exceptional properties
What are the special features of an exceptional asset?
Exceptional properties follow luxury codes. They could be luxury apartments in Monaco or La Croisette in Cannes, villas on the seafront of the French Riviera, chalets in Courchevel or Megève or prestigious buildings on a Parisian avenue of international renown. This micro-market, governed by subjective logic rather than economic rationality, escapes the usual standards of profitability. The market is also very opaque because operations are generally confidential. The expertise of BNP Paribas Real Estate - Valuation experts consists in analysing and exploiting the valuation and transaction history available to us (the size of our network gives us access to important data on this niche market), and provides maximum rationality in the valuation of these assets for our clients.
What are clients' expectations of this asset?
BNP Paribas Real Estate - Valuation operates in the high-end real estate market on behalf of owners or buyers, but mainly on behalf of banks as part of the mortgage risk analysis. Banks also need to be "reassured" about the risk associated with complying with urban planning standards seek to understand the liquidity of these exceptional assets, which take much longer to market than more traditional real estate assets. BNP Paribas Real Estate – Valuation experts give banks insights on the long-term asset behaviour on the markets.
What are the main criteria for valuing an exceptional property?
When our experts value exceptional properties, they considered each assets to be inherently unique in nature in a market marked by a heterogeneity of value related to location (with views), proposed confidentiality, habitable surface area, configuration and service quality for each valuation. Our know-how in this unusual market consists in bringing a maximum amount of rationality and clarification based on data from valuations performed over the years.
The location of the exceptional property
Paris, the French Riviera, winter sports resorts and famous seaside resorts
Benefits and Features
Level of equipment and specific layoutLevel of equipment and specific layout
Market Research
Market evolution, trading volume, demand analysis
Planning standards
Possible upgrade cost
Banks requesting valuations are particularly sensitive to the potential for conversion and/or extension of the exceptional assets being valued. The risk of complying with urban planning standards is also one of their concerns.
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