Branded Estates
For almost a decade, Alexander Kraft has been working with Sotheby's, re-establishing the vaunted auction house's European real estate division in 1999. Kraft discusses what makes Sotheby's such a stable luxury brand, and what sets it apart from the rest of world's high-end property pack.
How long have you been working in the luxury real estate field?
Originally an international lawyer, I started working at the Sotheby's auction house in 1997. After transferring to Sotheby's International Realty the following year, I was appointed European Manager and Senior Vice President in 1999 in which capacity I oversaw the establishment and management of Sotheby's International Realty's international network in Europe, Africa, Russia and the Middle East. When the current franchise model was introduced in 2004, I immediately acquired the master franchise rights for Europe's most important luxury real estate markets, France and Monaco. Since then, I have established Sotheby's International Realty representatives all over France in my capacity as Chairman & CEO of Sotheby's International Realty France - Monaco.
What are the main differences between Sotheby's International Realty and the other global high-end real estate networks?
Sotheby's International Realty is really the only international real estate network that is exclusively specialized on high-end real estate. Unlike all other international real estate networks which have begun to establish "luxury divisions", we have never dealt with anything but the most distinguished properties all over the world. And also unlike other luxury brands that dabble in real estate, we are not only employing a marketing model based on famous name, but are really, and have always been, true brokers with more than 30 years experience in international high-end transactions.
How many real estate agencies and partners do you currently have in France ?
Sotheby's International Realty France now has more than 20 offices in France's most important luxury real estate markets such as Paris, Cannes, St. Tropez, Cap Ferrat, Biarritz, Bordeaux, Burgundy, Provence and the Auvergne. We expect to have around 25 offices by the end of this year, and about 40 - 50 offices by 2008. Of course, we benefit from the extensive worldwide Sotheby's International Realty network with more than 300 offices in nerve centers such as New York, L.A., London, Geneva or Sidney. Last, but not least, we cooperate closely with the Sotheby's auction house and its more than 100 offices worldwide.
How do you select / approve of a property to be included in Sotheby's International Realty portfolio?
First and foremost, the property has to correspond to the elevated image of our company. This is not only a matter of price - although our average sales price worldwide is around $ 1 million - but also of other factors such as location, condition, and appeal. We really try to offer our clients a wide range of luxury properties at all price levels that correspond to their different needs, from a small, elegant pied-à-terre in Paris for the shopping trip to a "grand château" in Burgundy as the family seat.
What are currently the most important trends on the European luxury real estate market, and especially in France ?
Just like the US market, the European, and especially the French real estate market, has seen a huge boom over the past 5 years with increasing prices and a strong demand especially in the high-end. It now seems as if prices are about to consolidate and probably level out in the foreseeable future. However, all this will still happen on a very high level, and I do not think that prices will significantly decrease any time soon. Thus, it is for us of the utmost importance to only have realistically priced properties in our portfolio that offer good value for money.
What is the profile of a typical buyer within your network ?
Of course, we have always had, and continue to have, many celebrity buyers, from former presidents such as Ronald Reagan to royalty such as late Princess Margaret's son, Lord Linley. Our typical buyer usually is a very successful, international client who already owns several residences and travels often. However, our clients come from all walks of life, be it business, entertainment, Hollywood, or nobility: They can be lawyers, doctors or entrepreneurs as well as rock stars, princes or presidents.
Where do you see the interest from Asian, and specifically Chinese buyers, concentrating?
In my view, Asian, and especially Chinese buyers are concentrating their interest mainly on those classic high-end markets that have a long-standing reputation for being an international hotspot. These can be metropolitan markets such as Paris, or resort markets such as the Côte d'Azur. Asian, and especially Chinese buyers, usually prefer top properties in a premier location and in perfect condition.
What personalized services would you be able to provide buyers from Asia?
We are happy to provide our Asian clients with the renowned "Sotheby's" high-end service. For each client, we will create a tailor - made program according to his individual needs. Of course, we always offer a truly personal service with a thorough pre-selection of properties prior to the showing, constant personal updates, and high-end marketing materials, but we will also be happy to respond to any other need such as translation - or chauffeur services.
What are the most outstanding estates your currently have for sale in your portfolio?
That's an impossible question to answer, because we have so many... we have a great selection of magnificent waterfront properties on the Côte d'Azur, private mansions in Paris, historic castles in Burgundy and Auvergne, charming châteaux in Provence and the Languedoc, and wine estates in Bordeaux. So whatever your real estate dream is, we will be happy to fulfill it...
