Luxury Home-Office Value: sustainable investment value beyond economic value in luxury.

Luxury Home-Office Value: sustainable investment value beyond economic value in luxury.

Excerpt from the Luxury Living 5D event held on October 26 at Auditorium Ferrero of SDA Bocconi, Milan and promoted by RE/MAX Group in collaboration with SDA Bocconi School of Management.

The dialogue between Leonardo Luca Etro, Associate Professor of Practice of Corporate Finance and M&A, and Giuseppe Abatista, Group Tax Consultant Salvatore Ferragamo, and the conclusions of Joanne Barley, Owner of The RE/MAX Collection Luxury Lakeview in Verbania on Lake Maggiore, highlights how the luxury experience is first and foremost a distinctive element with deeply symbolic meaning, which identifies a way of being and belonging to a core set of values in order to enhance the peculiarities of those who live that experience. An English national, Joanne Barley has lived on Lake Maggiore for more than twenty-five years, knowing every place, and can boast more than 15 years of experience as a Real Estate Agent exclusively in the prestigious real estate sector. Today she is the owner and promoter of the first agency in Italy of “The RE/MAX Collection”. Her International experience guarantees confidential and professional service.

Joanne Barley, Owner of The RE/MAX Collection Luxury Lakeview in Verbania

The pandemic has revolutionized the positioning and market characteristics of luxury, impacting demand and end-user behavior in real estate as well.

Offices are being asked to be more “cozy” and a place for interaction, and homes are being asked to respond to new needs including allowing for work spaces. Similar to the general case, the luxury living customer seeks not only elements of uniqueness and preservation of distinctive elements over time, but also sustainability in terms of ecological and socially conscious alternatives.

The move away from ostentation in favor of discretion and confidentiality is manifested in 5 areas:

1) quality and durability in terms of attention to high-quality materials and craftsmanship;

2) timeless design and architecture expressed through the relevance of unique and durable architectural elements with reduced environmental impact;

3) ethical sourcing of materials and use of “poor” materials even in luxury products;

4) conscious purchasing with attention to all elements related to the production and management of the asset;

5) minimalism and simplicity. How can companies respond to long-term sustainability needs while taking into account short-term needs? The panel pointed out that one risk factor is the excessive focus on the short term, often coinciding with the company’s valuation each quarter from short-term EBITDA.
Operators who really want to create sustainable long-term value need to find the best tools to include in the business model to be able to extend the time horizon with the full agreement of the capital contributors, which is easier in the case where the ownership, as is the case for so many “made in Italy” companies, is family-based.