TIMING, FUTURE & LIKELYHOOD ARGUMENTS
“Timing” can often be the differentiating element in business.This is true to such an extent that products or initiatives that were launched in unfavorable times have not succeeded, but they have been able to be rescued (or revived) at a later stage obtaining huge commercial success.
8- LIFESTYLE AS AN INTEGRAL PART OF THE COMPANY CULTURE
As the markets and the economy begin to recover, demand and prices scale up gradually and progressively. In the real estate business, deals are closed eventually, but they do close.What does it mean? Nothing less than letting consumers and prospects discover you and your products whenever they are ready.The wave of buyers come in due course, for example, when they begin to see proﬁts in the stock market, sell other assets, make good earnings, have the time to focus, or even when parents think of travelling on school holidays with their children. Or, presently, when people feel it is time to buy because prices are attractive as they have fallen substantially. Would you not rather invest in strongly depressed markets such as Spain, rather than markets in other European countries, where real estate prices are at an all-time high?
In the EU and the US an important aspect in people’s behaviour is that they are not prepared to renounce their concept of lifestyle. It is true that they may not increase spending substantially, but they will certainly maintain their usual consumer habits and way of life. This is important, especially in the high-end real estate sector, as it is not under such strong selling pressure as in the rest of the market.
With second generations, many consumers reach for what is known as “the permanent search of improved lifestyle and quality of life”. Consumers, especially in emerging countries or the Middle East, are in search of the best quality and features, the fastest, the most advanced or innovative; and for that, they are prepared to pay.
In a business like ours, where a second home costs an average of 7,5 million Euros, the “air becomes thin,” in terms of potential clients. It becomes high luxury where a mix of factors play a key role in the purchase decision, starting with the brand. But it is also a business about people and networking. And questions of high importance arise, like, “Who else is in the neighbourhood?” or “Whom will I meet on the golf courses?”
To put this argument under perspective, let us think about the Ferrari brand.Just as there are many Ferrari cars spread throughout the planet, there are Ferrari fan clubs in different parts of the world. The fans ﬁnd the need to meet and share their stories and emotions around the cars and the brand. In our speciﬁc case, the Zagaleta brand is the common denominator, and its customers, whenever they meet, will be curious to know who else shares the passion, how they came across the product and what made them become part of it. What are the known stories related to Zagaleta and who shares them?
9- IN THE FUTURE ¨BUYERS WILL QUEUE UP TO BUY”.
Why? New, innovative products and designs will on the pipeline each year, creating expectation and demand. Whether the company manages to achieves this or not, it will be a clear OBJECTIVE.
The reasoning is quite simple: Why not?
If customers are pre-ordering limited car editions and are prepared to wait long periods of time to get a speciﬁc model delivered, the same could happen in a hyper-luxury resort like Zagaleta, where the offer is limited, both by space and number of units. Especially as most new customers want the latest architectural designs, materials and features, the only way to obtain such a product is either by acquiring an exiting object and making the necessary changes and reforms (sometimes there is no other way than to demolish the existing building) or buying a new product from the product maker, hence the developer.
Of course the market, to a great extent, is still looking for traditional custom architectural homes, but the bidding is generally lower than the latest available on
the market. The ability of the teams behind the product to “steer” the offer is key for such wishful desire (for any company, by the way) to have people prepared to queue to be served. This is an existing trend at Zagaleta that started some six years ago and that will gain momentum as the economy starts to recover.
Clearly all communication patterns of the company are pointing towards exclusivity and uniqueness of the products and future supply waiting times.
10- THE LIKELYHOOD: A GREAT FUTURE LIES AHEAD FOR THE PROPERTY PRODUCT
Far from being exhausted, and in comparison with other prime areas of the world, the price range is perceived as reasonably attractive.
When can one recommend with great tranquillity an investment? When the substance is there and the price is right. We are experiencing a moment just like that in history and it is worth it to pay premium prices to become part of the brand. But this premium is justiﬁed, as the future will allow you a much better and higher exit.