Celebrities Like Beyoncé and Jay-Z Have a New Obsession: An 81-Year-Old Japanese Architect
Tadao Ando has developed a cult following among high-profile, uber-wealthy buyers
8 min
These days, the hottest must-have among the super wealthy isn’t an Hermès purse, a designer Doodle dog or even Ozempic.
It is a concrete home designed by an 81-year-old Japanese architect.
Celebrities like Beyoncé, Jay-Z, Kanye West and Kim Kardashian are flocking to homes designed by Tadao Ando, a self-taught, Osaka-based architect. Ando’s homes aren’t just rare, but also affordable only for the very rich: Numbering fewer than 20 in the U.S., they are generally defined by their use of reinforced architectural concrete, which makes construction far more expensive than in typical homes. Clients must also be willing to go to great lengths to bring his vision to life.
In recent years, Ando has developed something of a cult following, with his devotees describing him in ethereal terms: master, poet, genius, icon. They travel to Japan for an audience with the Pritzker Prize winner, and beg him to design their homes.
“It was like working with God,” said Leonard Steinberg, a real-estate agent with Compass in New York, who worked on sales at 152 Elizabeth Street, a boutique condominium designed by Ando in the mid-2010s. “There was definitely a sense that we were dealing with an iconic figure of our time.”
A recent string of mega deals has brought Ando’s work into the spotlight and dramatically driven up prices for his homes, according to industry insiders. Most recently, Beyoncé and Jay-Z paid about $200 million for an oceanfront Ando-designed mansion in Malibu, Calif., according to people familiar with the sale. The blufftop house, measuring about 42,000 square feet, was designed by Ando for prominent art collectors Bill and Maria Bell, who spent a dozen years constructing what Maria Bell said is a “sculpture as much as it is a building.” The deal, which closed May 22, set a record for the highest price ever paid for a home in California. Jay-Z and Beyoncé didn’t respond to requests for comment.
They weren’t the first celebrities to eye the house. West, now known as Ye, was planning on purchasing it for an even higher price last year, before his erratic behaviour and antisemitic comments derailed his earnings, according to people familiar with the situation. West couldn’t be reached for comment.
The purchase would have been West’s second Ando home. In 2021, the rapper purchased a $57.25 million Ando property on the beach in Malibu from former Wall Street heavyweight Richard Sachs.
That same year, Slack co-founder Stewart Butterfield and his wife, Away co-founder Jen Rubio, paid roughly $40 million to buy an elaborate Ando-designed ranch near Santa Fe, N.M., from designer Tom Ford. Known as the Cerro Pelon Ranch, the roughly 20,000-acre property has a house perched on an enormous reflecting pool.
West’s former wife, the reality star and entrepreneur Kim Kardashian, posted on Instagram about working with Ando on a home near Palm Desert, Calif. In 2019, the Skims co-founder paid $6.3 million for roughly 1.8 acres of land in the Madison Club in La Quinta, according to property records, and has since applied for a building permit for a new house with a pool and spa. Kardashian recently visited Ando’s office in Japan to make finishing touches to the design before breaking ground, she wrote in an April post.
“Met with the master himself, Tadao Ando to review and discuss a dream project we have been working on for the past two years,” she said, posting photos of the two of them in his office, with drawings of the spaceship-shaped house on a table between them. Kardashian declined to comment.
Ando’s office didn’t respond to requests for comment.
Born in Osaka in 1941, Ando had a brief stint as a boxer before turning to architecture. Largely self-taught, he opened his eponymous firm in 1969, according to the firm’s website. While early works included tiny homes in Japan, Ando became famous for cultural institutions like the Church of the Light in Osaka, which opened in 1989, and the Pulitzer Arts Foundation in St. Louis, which opened in 2001. He won the Pritzker Prize in 1995.
“For us in architecture, Ando has been one of the truly biggest names for a long time now,” said Seng Kuan, an architecture professor at Harvard University and the University of Tokyo. Architecture has become a luxury item collected by 1% of the 1%, Kuan said, noting that a “rarefied subset of architectural masterpieces…are being collected as works of art.” Ando is among the handful of living architects whose work falls into that category, he said.
Sometimes described as Brutalist, Ando’s homes are typically hulking, sparse structures with smooth edges, water features and windows that frame the views. Admirers say they evoke an almost spiritual, Zen-like experience in their simplicity, while others say the concrete is too hard and cold to be liveable.
Due to the higher costs of concrete construction, Ando’s clients typically pay multiples of the usual price of construction to build the homes he has designed. Moreover, Ando doesn’t simply design the home and then hand over the plans, clients said: He is involved in every step of the process, down to the landscaping and even furnishings.
“You don’t just get a sketch and build it,” Steinberg said. “You have to build it his way.”
Ando clients are more art patrons than homeowners, and the resulting home becomes “an art form that you inhabit,” said architect Leo Marmol, who has worked on two Ando projects.
“It is about pushing design ideals to a level that is not normal,” he said. “The client has to be willing to embrace that, and look at the relationship with Mr. Ando as working with a true master.”
Marmol sees the recent spate of mega sales as evidence of Hollywood’s longstanding relationship with significant architecture, which he said is “a way to publicly make a statement about your celebrity status.”
Not everyone embraces Ando’s aesthetic. When it came to marketing the seven condos at 152 Elizabeth, the sales team worked with an interior designer to soften the look with more textured touches, lighting and wood accents, in order to appeal to a wider audience. “It had to be warmed up,” Steinberg said. Still, Ando had to sign off on the interiors, or “we would have gone to Ando jail,” he said with a laugh. The building sold out after about four years of sales, property records show.
Ando’s brand of concrete construction is challenging, Marmol said, especially in California, where construction must meet guidelines for earthquakes. Building on the sand in Malibu is especially tricky, he said.
“The salt and the corrosive nature of the air isn’t friendly to metal, which is a major structural component in concrete,” he said. “The rebar has to be specially treated and handled in such a way that the corrosion can’t impact it.”
Marmol estimated that building with concrete to Ando’s specifications costs two to three times more than traditional high-end home construction.
Amit Khurana of Sumaida + Khurana, which developed 152 Elizabeth, said they tested each truckload of concrete for quality control, and turned away more trucks than they accepted. “There was a specialist on site who would sift through the concrete with his bare hands,” he said.
Sachs, a longtime Ando devotee, told The Wall Street Journal in 2020 that his Malibu home took seven years to build. Construction required about 1,200 tons of concrete, 200 tons of steel reinforcement and 12 massive pylons driven more than 60 feet into the sand. “This isn’t just a house. This is like a Picasso cubist painting, very important and very rare,” Sachs said at the time.
Ando is known to have rejected prospective clients, despite their hefty budgets. “A considerable range of people come to my firm to request my design services,” he was quoted as saying in the book “Tadao Ando: Living with Light” by Philip Jodidio. “My decision to accept their projects depends mainly on their personality and aura.”
In other words, “a billionaire could come in the door tomorrow and offer him a billion dollars to design his house, and that wouldn’t motivate him,” said L.A. real-estate agent and developer Tyrone McKillen, who has worked with Ando. “It has to be close to his heart for him to work with you.”
To convince Ando to design 152 Elizabeth, Khurana said, he showed one of Ando’s associates the site on a rainy night in New York, and then flew to Osaka the following week to meet the architect himself. He brought Ando a gift—a book about Muhammad Ali—and once Ando sketched an idea for the New York condo, Khurana said he refused to leave the office without a commitment to move forward.
Many of Ando’s clients are art collectors, said Kuan, noting that concrete is neutral enough to complement modern art.
Two such collectors are Bill and Maria Bell, the sellers of the Malibu home purchased by Beyoncé and Jay-Z. The Bells paid $14.5 million in 2003 for a roughly 8-acre parcel of land in Malibu, according to records. They had been admirers of Ando’s work for years before they hired him to build a house on the site, Maria Bell said. “[The site] had this incredible feng shui, if one believes in that,” she said. “It spoke to Mr. Ando.”
She said the architect visited Malibu and they traveled to Osaka, where he presented them with the design.
“Certainly we asked ourselves, would we really be capable of going there and living in an Ando home?” she said. On top of laborious construction, “it’s also a daunting idea to live in something that can seem to many people like a Brutalist structure.”
But they were reassured once they met with Ando, she said, when it became clear his vision for the site was “exactly right.”
The six-bedroom house took 12 years to build and is supported by concrete piles and footing, said Kulapat Yantrasast, the project architect on the home. Ando also designed many pieces of furniture for the home—minimalist wood dining tables, beds and chairs—that will remain in the house, Maria Bell said.
Now that the home is completed, the minimalist materials and use of light create a calm and quiet vibe, Maria Bell said. The windows frame vistas to create a connection with nature, as does a reflecting pond that visually links the house to the horizon. “On grey days, the concrete seems more grey and Zen,” she said. “On blue sky days, it’s dazzling and spectacular.”
She declined to comment on the sale of the home, but said over the years, “the people that have responded to the house have been artists, whether visual or performing. I think that really Ando is also an artist as well as an architect.”
Joey and Ragnar Horn, who both work in finance, jumped at the chance to buy a pied-à-terre at 152 Elizabeth in New York in 2015, Joey Horn said. The couple, who live in London, were living in Oslo at the time.
Joey Horn said she had been a fan of Ando’s since she was a graduate student in the 1990s. During a visit to New York, she stumbled upon the Elizabeth Street site, which is one of only a few condo projects Ando has done. “I called my husband and said, ‘We have to buy an apartment in this building. [Ando] doesn’t do residential buildings—this is probably the only chance we have,’” she said.
The couple paid $14.65 million for the fifth-floor unit, records show. The living room has concrete columns and floor-to-ceiling windows.
A few years ago, the Horns also purchased a house in Williamstown, Mass., near their alma mater, Williams College. The house is across the street from the Clark Art Institute building Ando designed in 2014, she said. The couple was briefly in touch with Ando’s office about building a house on the site. The next step was to go to Japan to meet with him, but life got in the way. Joey Horn said the timing was wrong and “then the trail went cold.” She said they are acutely aware that Ando is 81 and time is limited. “Our dream is still to have Ando do something there,” she said. “We haven’t given up.”
Homeowners who have invested in building or buying Andos have been rewarded financially. Tom Ford’s ranch garnered interest from buyers around the world who wouldn’t normally have eyed a home in Santa Fe, said listing agent Kevin Bobolsky.
“Tadao Ando put Santa Fe on the map internationally in a big way,” he said.
Long after the property has been sold, Bobolsky said he still hears from interested parties.
“At least once a month, I get some billionaire that’s looking to lease it for an event,” he said.
McKillen, one of the agents who worked on the Malibu sale to West in 2021, said he and his colleagues got “laughed at” when they put a $75 million price tag on the property, but ultimately felt vindicated by the final deal. The final sales price clocked in at more than $14,000 a square foot, one of highest sums ever paid in the country by that measure.
McKillen said he attributed much of that value to Ando’s association with the house.
“Obviously, being on the Pacific Ocean has an impact, but the real value was in it being an Ando design,” he said. “There are lots of properties that sell on the ocean for $4,000 or $5,000 a foot. We got three times that.”
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Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Marcus has over 20 years of experience in sales strategies and market analysis
2 min
The Metropolitan Group has appointed Marcus Andersson as the new head of Penthouse.ae, a Dubai-based full-service real estate agency specializing in serving the needs of Ultra High Net Worth Individuals (UHNWIs).
With his extensive experience and proven track record in the international real estate market, Marcus will play a pivotal role in driving the growth of Penthouse.ae and strengthening its position as a leader in Dubai’s super-luxury real estate sector.
Marcus has over 20 years of experience in sales strategies and market analysis, having worked across four countries. His entrepreneurial spirit and successful ventures, including the establishment of three companies focused on real estate investments, have resulted in impressive sales exceeding USD 1 billion.
“We are excited to have Marcus take the lead at Penthouse.ae as we continue to expand our footprint in the super luxury real estate sector in the UAE,” said Nikita Kuznetsov, CEO of Metropolitan Group. “His deep understanding of the real estate market, coupled with his passion for excellence will be invaluable in driving Penthouse.ae’s continued success. As Dubai’s super-luxury real estate market continues to flourish, Marcus’s expertise will be instrumental in meeting the evolving demands of our discerning clientele.”
Commenting on his appointment, Marcus Andersson said, “I am excited to lead our exceptional team in this vibrant market. Dubai’s super-luxury real estate sector is witnessing remarkable growth, and I look forward to leveraging my expertise to unlock new opportunities for our clients. Together, we will elevate Penthouse.ae’s status as a premier player in the super-luxury segment.”
Under Marcus’s leadership, Penthouse.ae will continue to offer a curated portfolio of luxury properties, including penthouses, villas and mansions, located in the most prestigious neighborhoods of Dubai.
Marcus’ appointment comes at a time of significant growth for Dubai’s super-luxury real estate sector. The city’s strong economy, strategic location and world-class lifestyle offerings have made it a highly sought-after destination for HNWI’s and investors. Penthouse.ae, with its focus on exclusive properties and exceptional services, is well-positioned to capitalize on this thriving market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The project blends luxury living with smart investment opportunities.
2 min
Jad Global Real Estate Development has unveiled its new project, “171 Garden Heights,” marking the groundbreaking of a development valued at AED 250 million. Positioned within the Meraas-led Jumeirah Garden City, the project comprises 171 fully furnished residential units, offering studios, as well as one- and two-bedroom apartments.
“171 Garden Heights” seamlessly merges luxury living with sound investment prospects, raising the bar for sophisticated urban lifestyles in Dubai. Its strategic location ensures easy access to key destinations such as Sheikh Zayed Road, Dubai Exhibition Centre, DIFC, Emirates Towers, Downtown Dubai, City Walk, and Jumeirah.
This project marks the official sales launch and signifies a new milestone in Jad Global’s development journey. The company plans to launch additional projects in Jumeirah Garden City over the coming months, with total investments exceeding AED 1 billion.
The project offers a suite of premium amenities designed to elevate the resident experience, including an infinity pool, a spacious social clubhouse, a fully equipped fitness center with state-of-the-art facilities, and electric vehicle charging stations.
Jumeirah Garden City’s strategic location, bolstered by modern infrastructure and a planned metro station, ensures it remains a top destination for lucrative real estate investments and high-quality living.
Commenting on the occasion, Mohammed Al Sheikh, Co-Founder of Jad Global, said, “Our team has successfully developed numerous landmark projects across Dubai, cementing the city’s reputation as a global hub for luxury real estate. Our extensive experience in the sector allows us to deliver iconic projects that reflect Dubai’s spirit of innovation and ambition.”
He added, “171 Garden Heights represents our renewed commitment to creating vibrant communities that align with Dubai’s vision of a sustainable and forward-thinking future. This project aims to surpass expectations and bring additional value to Dubai’s dynamic real estate market.”
All units in “171 Garden Heights” come fully furnished with exquisite designs, providing residents with an unparalleled living experience. The project offers an ideal opportunity for both long-term residence and short-term holiday rentals, delivering attractive investment prospects with flexible leasing options and high returns.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
The capital’s real estate market is benefiting from various economic and demographic factors that are shaping its growth trajectory.
3 min
Abu Dhabi’s real estate market continues to demonstrate resilience, with both affordable and luxury property segments performing well throughout the third quarter of 2024. According to the latest market report by Bayut, the UAE’s leading property portal, the capital’s real estate market is benefiting from various economic and demographic factors that are shaping its growth trajectory.
Trends in Property Purchases
Among those seeking affordable apartments, Al Reef, Al Ghadeer, and Masdar City emerged as the top locations during Q3 2024. Buyers have been particularly drawn to these areas due to their strategic locations and competitive pricing, offering value-driven investment opportunities.
For those in the market for luxury apartments, Al Reem Island, Al Raha Beach, and Yas Island have remained prominent choices. These areas are known for their upscale living environments, premium amenities, and proximity to some of Abu Dhabi’s key attractions. Saadiyat Island recorded the highest price increase for luxury apartments, with prices per square foot rising by up to 8%, driven by sustained demand.
In the villa market, Al Reef, Khalifa City, and Al Shamkha attracted the most attention in the affordable segment, with prices seeing steady growth. In the luxury villa segment, Yas Island, Al Raha Gardens, and Saadiyat Island led the market, benefiting from the allure of exclusive living spaces near Abu Dhabi’s iconic landmarks. Yas Island villas, in particular, saw price increases of nearly 5%, reflecting the area’s desirability.
Return on Investment (ROI) Trends
For property investors, ROI remains a critical consideration, and Bayut’s data points to strong yields across Abu Dhabi. Al Reef and Al Ghadeer offer attractive returns of 8.86% and 8.20% respectively for affordable apartments, while premium properties on Yas Island and Al Reem Island show returns of up to 7.22%. The affordable villa segment, particularly in Hydra Village and Abu Dhabi Gate City, continues to yield solid returns, with rates reaching 8.06%.
In the luxury villa market, Yas Island once again tops the charts with an ROI of 6.50%, closely followed by Al Raha Gardens at 6.42%.
Popular Off-Plan Projects
The off-plan property market in Abu Dhabi is also gaining momentum, with projects catering to both affordable and luxury buyers. For affordable apartments, Royal Park in Masdar City has garnered significant attention due to its competitive pricing and strategic location. Meanwhile, City of Lights in Al Reem Island continues to attract luxury apartment buyers with its modern architecture and premium waterfront views.
In the villa market, Bloom Living has become a popular choice among families seeking affordable housing with ample green spaces. On the luxury side, Saadiyat Lagoons on Saadiyat Island is a top contender, known for its exclusive waterfront properties and proximity to cultural landmarks.
Rental Market Trends
The rental market in Abu Dhabi has seen dynamic shifts across both affordable and luxury segments in Q3 2024. In the affordable apartment segment, areas like Khalifa City, Al Khalidiya, and Al Shamkha have witnessed significant tenant interest. Rents for 1- and 2-bedroom flats in Al Khalidiya and Tourist Club Area saw the highest increases, driven by a surge in demand.
In contrast, tenants seeking luxury apartments have focused on Al Reem Island, Al Raha Beach, and the Corniche Area, where rents have risen by 2% to 11%. Saadiyat Island remains a hotspot for luxury rentals, with noticeable price hikes in 1- and 2-bedroom apartments.
In the villa rental market, Mohammed Bin Zayed City, Khalifa City, and Madinat Al Riyadh continue to attract tenants looking for affordable housing. However, some areas, such as Shakhbout City and Al Reef, reported slight price decreases. On the luxury side, Yas Island, Al Raha Gardens, and Al Mushrif saw strong demand. Notably, 6-bedroom villas in Al Karamah experienced a price drop, while similar units in Al Mushrif saw a 12.4% increase.
Commenting on the findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said: “The Abu Dhabi real estate market is continuing to stay strong this year, thanks to increased transparency and solid investments from both local and international players. If we look at just the last quarter, we have had over 3.5 million visits on our platform for listings in Abu Dhabi, showing just how strong the demand for properties in the capital is even during summer months. The government’s efforts to enhance data accessibility and push forward digital initiatives, like AI-powered services and the comprehensive DARI real estate platform, have definitely contributed to this.
Looking to the future, we can anticipate even better outcomes. The Abu Dhabi Real Estate Centre (ADREC) is set to attract more foreign investments by streamlining regulations and maintaining a strong focus on transparency. By embracing global standards and leveraging trends like smart city projects and sustainability, Abu Dhabi is positioned for even more growth in its real estate sector.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
2 min
An imposing Scottish castle that has only had four owners in its more than 200-year existence has hit the market asking for offers above £8 million (US$10.45 million).
Seton Hall, as it’s known, was built in 1789 by architect Robert Adam using stone from Seton Palace, the since-demolished property that was considered to be Mary Queen of Scots’s preferred retreat, according to Savills, which brought the home to the market last month.
“Seton is an absolutely magical castle—from the moment you approach, to the inner courtyard, to the quality of interior design,” said listing agent Jessica Gwyn.
The castle—roughly 10 miles from Edinburgh—remained in the same family from the late 18th century until 2003, which “served to freeze Seton in a protective time warp,” according to the listing.
Castellated features such as slit windows and turrets can be seen from the outside, and inside “secret staircases, curved doors, curved walls, arched windows and hidden doors add to the charming sophistication of the architecture and design,” the listing said.
But the castle has since been refurbished to meet modern standards, and now also boasts a helipad, a full security system, a gym, a playroom, a silk-lined dining room and a billiards room.
The restoration project saw a team of expert stonemasons rebuild the castle’s many chimneys, turrets and rooftop parapets. Plus, ironwork was restored, the dumbwaiter reinstated and the 10,000-bottle wine cellar was brought back to life, Savills said.
Alongside the seven-bedroom home that forms the core of the castle, there are additional residences across the property, including Darnley Cottage and Bothwell Cottage—named after Mary Queen of Scots’s husbands.
The castle’s stables have been refurbished, too, and are adjacent to the “Stable Bar,” the castle’s private pub.
The owner—who Mansion Global couldn’t identify—“feels their time as custodian of this outstanding building has come to a natural conclusion and it is time for this historic home to be loved and cared for by someone else,” Gwyn said.
This article first appeared on Mansion Global
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
New amenities, from a gym to a movie theatre, and a good commuter location filled this suburban office tower
3 min
Manhattan’s office-vacancy rate climbed to more than 15% this year, a record high. About 80 miles away in Philadelphia, occupancy also is at historically low levels. But a 24-storey office tower located between the two cities has more than doubled its occupancy over the past five years.
Developer American Equity Partners bought the New Jersey office tower, known as 1 Tower Center, for $38 million in 2019. At the time, the 40-year-old building felt dated. It had no gym, tenant lounge or car-charging stations. The low price enabled the firm to spend more than $20 million overhauling and luring tenants to the 435,000-square-foot property.
Now, the suburban building is nearly fully leased at competitive rents, mopping up tenants from other buildings after the owner added a new lobby, movie theatre, golf simulator, fitness centre and a tenant lounge featuring arcade games and ping-pong tables.
“Our tenants told us what they needed in order to fill up their offices,” said David Elkouby , a co-founder of American Equity, which owns about 4 million square feet of New Jersey office space.
The new owner also liked the location at the 14-acre hotel and conference-centre complex, off the New Jersey Turnpike’s Exit 9 in East Brunswick. The site is a relatively short commute for millions of workers in central New Jersey and is passed by 160,000 vehicles daily.
The property’s turnaround shows how office buildings can thrive even during dismal times for most of the U.S. office market, where vacancies remain much higher than pre pandemic.
Success often requires an ideal location—one that shortens the commute time of employees used to working at home—and the sort of upgrades and amenities companies say are necessary to lure employees back to the workspace.
One Vanderbilt, a deluxe office tower with a Michelin-star chef’s restaurant and plenty of outdoor space in Midtown Manhattan, is fully leased while charging some of the highest rents in the country.
The 11-story Entrada office building, in Culver City, Calif., is making the same formula work on the other coast. It opened two years ago with a sky deck, concierge services and recessed balconies. A restaurant is in the works. The owner said this month that it has signed three of the largest leases in the Los Angeles area this year.
1 Tower Center shows how the strategy can be effective even in less glamorous suburban locations. The tower is prospering while neighbouring buildings that are harder to reach with outdated facilities and poor food options struggle to fill desks even at reduced rents.
The recent interest-rate cut and reports that some big companies such as Amazon .com are re-instituting a five-day office workweek have raised hopes that the office market might be getting closer to turning.
But with more than 900 million square feet of vacant space nationwide and remote work still weighing on office demand, more creditors are seizing properties that are in default on debt payments.
Rates are still much higher than they were when tens of billions of dollars of office loans were made, and much of that debt is now maturing. The recent interest-rate cut doesn’t mean “office-sector woes are now over,” said Ermengarde Jabir, director of economic research for Moody’s commercial real-estate division.
Lenders are dumping distressed properties at steep discounts to what the buildings were worth before the pandemic. Some buyers are trying to compete simply by cutting their rents.
“Most owners don’t have the wherewithal to do what is required,” said Jamie Drummond, the Newmark senior managing director who is 1 Tower Center’s leasing agent. “Owners positioned to highly amenitise their buildings are the ones who are successful.”
HCLTech, a global technology company, illustrates the appeal. It greatly expanded its presence in New Jersey by moving this year to a 40,000-square-foot space designed for its East Coast headquarters at 1 Tower Center.
The India-based company said it was drawn to the building’s amenities and design. That made possible a variety of workspaces for employees, from quiet nooks to an artificial-intelligence lab. “You can’t just open an office and expect [employees] to be there,” said Meenakshi Benjwal , HCLTech’s head of Americas marketing.
HCLTech also liked the location near the homes of its employees and clients in the pharmaceutical, financial-services and other businesses.
Finally, it didn’t hurt that the building is a short drive from nearby MetLife Stadium. The company has a 75-person suite on the 50 yard line where it entertains clients at concerts and National Football League games.
“All of our clients love to fly from distant locations to experience the suite and stadium,” Benjwal said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
JMJ Group Holding also signed a non-binding Memorandum of Understanding (MoU) with Ennismore
4 min
JMJ Group Holding, in partnership with Qetaifan Projects, has officially launched SLS Doha The Grove Residences, an ultra-luxury residential development, at Cityscape Qatar 2024. Designed by the internationally acclaimed Zaha Hadid Architects and situated on the exclusive Qetaifan Island North, SLS Doha The Grove Residences aspires to redefine innovation, sustainability, and luxury living in Qatar.
Real estate investors and enthusiasts had the opportunity to explore SLS Doha The Grove Residences at JMJ Group Holding’s booth, part of the Qetaifan Projects pavilion at the exhibition. Guided by JMJ’s real estate advisors, visitors learned about the project’s standout features, including the spectacular design, smart home integrations, and sustainability initiatives. Visitors also explored investment incentives, such as flexible payment plans and rental assistance, and discovered how SLS Doha The Grove Residences offers a unique blend of luxury living and strong investment potential through interactive displays and models.
JMJ Group Holding also signed a non-binding Memorandum of Understanding (MoU) with Ennismore, the fastest-growing lifestyle and leisure hospitality company, to bring to life the branded residence, SLS Doha The Grove Residences. This potential collaboration enhances the project’s exclusivity, aligning SLS Doha The Grove Residences with SLS’s inimitable brand of immersive extravagance. This collaboration ensures that, alongside the exclusivity, privacy and carefully curated services associated with a branded residence, owners will also have access to an enviable array of dedicated residential amenities, all managed by Ennismore and SLS.
On the occasion, Sheikh Jabor bin Mansour bin Jabor bin Jassim Al Thani, Chairman of JMJ Group Holding, commented: “SLS Doha The Grove Residences embodies our commitment to crafting residences that harmonize luxury, innovation, and sustainability. This project sets a new benchmark for high-end living, offering exceptional design and world-class amenities. We invite investors to explore the unique opportunities SLS Doha The Grove Residences presents, as it promises not just a home but a premium lifestyle investment.”
He continued: “Signing an MOU with Ennismore further enhances this exclusive experience. A name synonymous with world-class hospitality, SLS’s expertise will ensure that residents at SLS Doha The Grove Residences enjoy unparalleled service that truly redefines luxury in Qatar.”.
Chadi Farhat, Brand COO of SLS & Head of Asia Pacific & Middle East at Ennismore, added: “We are honored to be part of SLS Doha The Grove Residences, a project that exemplifies the power of collaboration and forward-thinking design. This partnership will mark an important step for our SLS brand as we expand into the Qatari market, where the demand for high-end, innovative living is growing. This project aligns perfectly with our commitment to creating extraordinary experiences, and we see great potential in contributing to Qatar’s dynamic luxury real estate sector. We look forward to delivering our renowned service and hospitality to create an exceptional living experience for residents wishing to say farewell to the ordinary.”
Set to infuse breathtaking experiences with signature mischievous wit and a playful ambience, SLS Doha The Grove Residences Doha is comprised of 293 lavishly designed residences, from one to four-bedroom apartments, each offering panoramic views of the Lusail skyline and access to an array of premium amenities. Residents will benefit from a waterfront promenade, complete with exclusive boutiques, cafes, and restaurants, as well as access to infinity pools, a state-of-the-art wellness center, a private members’ club, and a marina. With its striking design and cutting-edge facilities, SLS Doha The Grove Residences seamlessly fuses modern architecture with environmental responsibility to deliver an exceptional living experience. Flexible pricing options are available, making SLS Doha The Grove Residences accessible to a range of buyers seeking luxury living in one of Qatar’s most prestigious locations.
Sheikh Nasser Bin Abdulrahman Al Thani, Chairman and Managing Director of Qetaifan Projects, stated, “This partnership with JMJ Group Holding is part of Qetaifan Projects’ ongoing successful collaborations locally, regionally, and internationally. Our partnership with JMJ Group Holding reflects Qetaifan Island North’s role as an attractive investment environment. We are excited to support SLS Doha The Grove Residences, a visionary project designed by Zaha Hadid Architects that caters to the market with more options and enriches Qatar’s positioning as a high-end, sustainable living leader.”
Juan Ignacio Aranguren, Associate Director at Zaha Hadid Architects, stated: “Innovation has always been at the heart of Zaha Hadid Architects’ approach to design. SLS Doha The Grove Residences project exemplifies how architecture can be a catalyst for creating vibrant, resilient communities.”
As SLS Doha The Grove Residences takes its place as a defining landmark on Qetaifan Island North, it sets a new benchmark for luxury living in Qatar. JMJ Group Holding’s collaboration with Zaha Hadid Architects and Ennismore not only elevates the project but also reflects a bold vision for the future of real estate in the region. With its innovative design, sustainable features, and world-class amenities, SLS Doha The Grove Residences is set to redefine the standard of modern living.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Setting new standards for excellence fashioning homes that cater for every lifestyle
2 min
ONE Development has appointed AE7, a globally renowned architectural and engineering firm, as the consultant for its AED 2 billion flagship project in Dubai’s City of Arabia. AE7 will be responsible for the project’s master planning, architecture, design, AI innovation integration, and development management. Their role also includes overseeing engineering, interior design, landscape architecture, project management, and implementing sustainability practices. This highly anticipated development is expected to be unveiled soon, marking a significant step for ONE Development.
AE7 is a global top 50 multi-billion-dollar Building, Design and Construction group with a proven track-record of excellence. Established in 2009 by seven internationally renowned American design professionals with over 40 years’ experience designing and creating destinations in the USA, Asia and the Middle East with almost 20 years of experience, the company has grown into a full-service architectural group providing specialty expertise through six offices worldwide, which has designed and managed over US$40 billions of design work over the past five years.
Ali Al Gebely, ONE Development Founder & Chairman, called the appointment a collaborative milestone between two like-minded organizations, saying: “We are in the process of redefining urban living through the integration of cutting-edge AI and its technology, and our City of Arabia project is a flagship enterprise that requires the strength and resilience of a world-leading consultancy that shares our aspirations, and selecting AE7 to be the project consultant aligns with our vision to have a strong world-renowned multi-disciplinary design firm on board. ONE Development and AE7 will offer our community residents a high-tech lifestyle that not only enhances their convenience by enabling them to engage and connect with their devices, homes, surroundings and facilities for a better life, but also upholds our joint commitment to environmental responsibility. From smart home systems to energy-efficient solutions, this development is setting new benchmarks for sustainable living in Dubai.”
Tomas Gulisek, Principal and Design Director at AE7, added: “AE7 is a global design firm with a reputation for breaking traditional boundaries through innovative solutions and comprehensive services. Our partnership with ONE Development on this prestigious project will enable us to jointly reinforce our vision of how a collaboration between two dedicated organizations can result in achieving innovative design solutions that do more than just provide accommodation; we are creating spaces that foster a sense of community while respecting residents’ privacy and honoring their individuality. It’s about balancing innovation with functionality, where design elevates everyday experiences.”
ONE Development is transforming the real estate landscape, setting new standards for excellence fashioning homes that cater for every lifestyle.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Violet Tower will stand as a major addition to JVC’s rapidly evolving skyline
2 min
The Violet Tower, a prestigious new residential project by Dubai Investments in the heart of Jumeirah Village Circle (JVC), is making remarkable progress. With its foundation work nearing completion, and 99.3% of the piling work already finished, this AED 300 million development is poised to become a standout feature in JVC’s evolving skyline. The project, led by top-tier construction firms, aims to deliver contemporary urban living spaces designed for modern residents.
Having logged approximately 58,000 working hours to date, the project remains on track for key milestones. The enabling works are expected to be completed by the fourth quarter of 2024, and the entire project is projected to be ready for occupancy by Q4 2026. Notably, the construction process has upheld an impeccable safety record, with no reported incidents, highlighting the efficiency and commitment of the team involved.
Strategic Location and Cutting-Edge Design
Positioned in the heart of JVC, Violet Tower is designed to meet the growing demand for modern, well-planned residential spaces. The development will offer 287 units spread across 27 floors, ranging from studios to two-bedroom apartments. Each unit has been meticulously planned to maximize space efficiency and cater to contemporary living standards, making it an attractive option for both professionals and families seeking quality homes in a vibrant community.
In addition to its strategic location, Violet Tower, by Dubai Investments, is packed with innovative features. A distinctive steel canopy roof will crown the building, giving it a unique architectural identity. The entrance area will be multifunctional, featuring a coworking station, perfect for the growing number of remote workers in the city. Moreover, the building will offer 24/7 security, ensuring a safe and comfortable living environment for all residents.
Strong Collaborations Ensuring Quality
The success of Violet Tower is backed by partnerships with some of the region’s most reputable contractors and specialists. Al Ghurair Contracting is overseeing the main construction works, ensuring that the development adheres to the highest standards of craftsmanship and durability. Tech Foundation is managing the enabling works, while the Arab Centre has been entrusted with pile testing, guaranteeing that the project meets rigorous quality benchmarks from the ground up.
A Vision for the Future
Upon its anticipated completion in late 2026, Violet Tower will stand as a major addition to JVC’s rapidly evolving skyline. It promises to offer a unique blend of contemporary living, thoughtful design, and community integration. By addressing the rising demand for modern urban homes, Violet Tower aims to provide its residents with a lifestyle that balances convenience, comfort, and cutting-edge features.
As Jumeirah Village Circle continues to grow as one of Dubai’s premier residential hubs, Violet Tower is poised to become a key player in the district’s transformation. With its forward-thinking design, top-tier amenities, and prime location, this development is not just about building homes—it’s about shaping the future of living in Dubai.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Stromek’s scope of work will focus on ensuring the stability and sustainability of the development’s foundational elements.
2 min
Dar Global has awarded the contract for shoring, excavation, and piling works on its prestigious ‘The Astera, Interiors by Aston Martin‘ project to Stromek Emirates Foundations. Recognized for their expertise in high-quality foundational engineering, Stromek Emirates has a strong reputation for delivering exceptional construction services across the region.
With a Gross Development Value of Dh900 million (£200 million), ‘The Astera’ marks Aston Martin‘s first venture into interior design for a real estate development in the Middle East. Set on the picturesque Al Marjan Island in Ras Al Khaimah, the project will feature a mix of luxury apartments and villas, blending Aston Martin’s signature design aesthetics with Dar Global’s commitment to offering exceptional living experiences.
Stromek’s scope of work will focus on ensuring the stability and sustainability of the development’s foundational elements. The firm’s expertise will play a critical role in preparing the site for construction, ensuring that the project can proceed smoothly while adhering to the highest standards of safety and precision.
“We are thrilled to have Stromek on board for this pivotal phase of ‘The Astera’ project. Their proven track record of excellence in shoring, excavation, and piling work perfectly aligns with the standards we uphold at Dar Global,” said Ziad El Chaar, CEO of Dar Global. “This collaboration underscores our commitment to working with the best in the industry to deliver world-class luxury developments that will leave a lasting impact.”
The shoring, excavation, and piling works are expected to commence immediately, laying the foundation for what will soon be a landmark development on the Arabian Sea. Stromek’s appointment is a key milestone in the progress of ‘The Astera,’ a development that will combine iconic British design with cutting-edge engineering and craftsmanship, elevating the living experience for future residents.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
These results emphasise the transformative impact of The Ellinikon project
2 min
LAMDA Development announced remarkable financial results for H1 2023. Driven by the record-breaking profitability of Malls and Marinas, alongside rapid progress across the trailblazing Ellinikon project on the Athens Riviera, consolidated operating profit has increased by 90% year-on-year to reach €72 million.
This impressive figure includes a 30% increase in operating profitability for Malls at €41 million and a 6% increase for Marinas at €9 million. To date, The Ellinikon has generated €366 million in property sales, fueling development across key assets, including significant milestones for Riviera Tower, The Cove Residences, and Vouliagmenis Mall.
These results emphasize the transformative impact of The Ellinikon project, a 15-minute paradigm city presenting a contemporary way of life and a new landmark for 21st-century Greece. Redefining the skyline of Athens, this development features luxury residences, world-class marinas, and state-of-the-art retail spaces to produce premium opportunities for international investors, particularly those in the GCC looking to diversify into European real estate.
“In Athens, we’re creating a place that stands for progress, where lives can be truly well lived in an amazing setting. And where new generations will find greater opportunities,” remarked Odisseas Athanasiou, CEO of LAMDA Development S.A. “The Ellinikon will reposition the country on the international investment map leading to an increased tourism footprint and a significantly healthier economy.”
The Ellinikon is positioned to become a hub for luxury living and high-end commercial activity with direct appeal to GCC investors seeking to expand their international portfolio. The project has already attracted high levels of interest, with huge demand for presales in waterfront residential properties such as Riviera Tower and The Cove Residences.
Exceptional property sales have empowered rapid reinvestment to facilitate pushing forward with The Ellinikon infrastructure. In addition to the residential towers and Vouliagmenis Mall—where 57% of the leasable area is now subject to tenant agreements—this has allowed accelerated progress including the completion of construction for the AMEA Building Complex among other core works.
With the luxury real estate market in Europe attracting heightened interest from Gulf investors, The Ellinikon offers a unique combination of lifestyle, location, and long-term value. The success of the project underscores LAMDA Development’s commitment to delivering world-class properties that resonate with high-net-worth individuals and institutional investors.
Key Highlights:
- Consolidated Operating Profit: €72 million (90% increase YoY)
- Malls Operating Profitability: €41 million (30% increase)
- Marinas Operating Profitability: €9 million (6% increase)
- Total Property Sales from The Ellinikon: €366 million
- Significant Demand for Waterfront Properties
Future Outlook
The ongoing developments at The Ellinikon project indicate a strong future trajectory with further phases planned. This includes luxury residential units and commercial spaces that cater specifically to high-net-worth individuals from the GCC region.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Further project details will be announced before end of the year.
< 1 min
Ohana Development, a leading luxury real estate developer, has revealed plans to launch a new branded residence project in partnership with a world-renowned luxury brand. The exclusive development, located in Abu Dhabi, is designed to elevate the standards of luxury beachfront living in the UAE.
The official launch is scheduled for the first quarter of 2025, marking another addition to Ohana Development’s collection of branded residences, following the success of its Elie Saab Waterfront by Ohana project.
Engineer Husein Salem, CEO of Ohana Development said, “We are thrilled to partner with one of the world’s most renowned luxury brands, bringing unparalleled beachfront living experiences to Abu Dhabi’s bustling real estate sector. This project will combine elegant design with incredible surroundings, offering an exclusive lifestyle for residents. We look forward to sharing more details in the coming weeks.”
Ohana Development is renowned for its portfolio of world-class waterfront properties, such as the prestigious Ohana Villas, featuring exquisitely crafted pieces from the ELIE SAAB Maison collection, Ohana Hills, a residential community with breathtaking views, Ohana by the Sea, that features luxury villas, as well as the Elie Saab Waterfront by Ohana. These developments exemplify the company’s commitment to creating sophisticated, unique spaces that offer exceptional lifestyle experiences across the UAE and beyond.
Further project details will be announced before end of the year.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
South Garden is the latest addition to Wasl Gate master development
2 min
Wasl, a leader in Dubai’s real estate development and management, has announced the complete sell-out of all units in its latest project, South Garden, within just 48 hours. South Garden, a freehold residential development, is part of the larger Wasl Gate master development located in Jebel Ali.
The project benefits from its strategic location, close to Festival Plaza, which houses popular stores such as IKEA and ACE, along with other retail destinations. It is well-connected to Dubai via easy access to Sheikh Zayed Road and the Energy metro station. South Garden also provides direct access to Al Maktoum International Airport, Expo City, and key free zones, including Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Center, Dubai Internet City, Dubai World Central, and Dubai Parks and Resorts.
South Garden offers 768 residential units to suit various budgets and lifestyles. Studios starting from 399 to 508 sq. ft., one-bedroom units ranging from 824 to 1,086 sq. ft, two-bedroom units starting from 1,153 to 1,299 sq. ft., as well as three-bedroom apartments from 1,744 to 2,127 sq. ft.
Mohamed Al Bahar, Director of Business Development at Wasl, said: “We are delighted to witness this overwhelming response to the launch from investors and end users. This highlights the strength of Dubai’s real estate sector and reflects the increasing demand for well-designed and well-priced residential projects.”
South Garden is the latest addition to the Wasl Gate master development. Wasl Gate includes several other residential projects alongside South Garden, such as The Nook, Gardenia Townhomes, and Hillside Residences. The Nook offers modern apartments of various sizes, while Gardenia Townhomes features spacious three- and four-bedroom townhouses, and Hillside Residences offers a variety of modern and unique apartments with spacious living areas.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Redefining Urban Living with Innovation, Sustainability, and Exceptional Amenities.
4 min
Union Properties PJSC’ has officially launched its new ‘Takaya’ project in Dubai Motor City, the Company’s latest milestone in Dubai’s Real Estate landscape designed to redefine sophisticated urban living. Takaya sets a new standard in the mid-to-high range segment, promising exceptional living experiences for its residents.
The launching ceremony was held at the Ritz Carlton DIFC, in the presence of Eng. Amer Khansaheb, Chief Executive Officer and Board Member, Union Properties. During the ceremony, Eng. Khansaheb highlighted how the project demonstrates the Company’s steadfast dedication to advancing Dubai’s Real Estate sector. The Takaya project aims to enrich the offerings provided within the Motor City’s master community, while also delivering novel and distinctive amenities that will attract investors and fulfil diverse customer needs.
The mix-use project, Takaya is constructed over a plot area spanning 436,175 sq. ft, overlooking the Dubai Autodrome, along with a stunning 500-metre retail boulevard. It comprises three residential towers with 744 affordable luxurious apartments. It also offers competitive unit sizes (studio, 1, 2, 3 BR) and pricing, making it a compelling market choice., along with penthouses, townhouses, villas, and commercial space. In contrast to other properties in the market, Takaya offers spacious living areas with attractive, post-handover payment plan. From sleek finishes to state-of-the-art amenities, the development, which is valued at approximately AED 2 billion, is set to provide a prestigious living experience for residents.
Commenting on the official launch, Eng. Amer Khansaheb stated: “We are thrilled to officially launch the eagerly awaited ‘Takaya’ project in Dubai Motor City, which reflects our unwavering commitment to innovation, sustainability and excellence. At ‘Union Properties’, we are driven by our mission of creating exceptional living experiences for customers through our several unique projects. The launch of ‘Takaya’ project is in line with our long-term growth objectives, further reinforcing our commitment to delivering superior quality and unparalleled value for customers. Our overarching objective is to create a vibrant residential community overlooking the one and only one Dubai Autodrome, which will redefine the standards of modern urban living.”
“By leveraging our extensive industry expertise and market insights, we look forward to capitalizing on new opportunities in the Real Estate market and future-ready liveable environments. The market has witnessed significant growth over the previous years, making the Motor City a global hub for property investors and homebuyers. The sector is expected to continue expanding in the coming years, further strengthening its appeal within the broader UAE market.” Eng. Khansaheb added.
Developments by Union Properties greatly contribute to Motor City market value and status by complementing current market offerings. According to DLD data, Motor City has experienced a sharp rise in Real Estate transactions and a notable acceleration of market momentum over the last three quarters. Recently launched off-plan projects in Motor City have experienced strong demand, which has a positive impact on the appreciation of property values.
Moreover, the UAE’s Real Estate market is anticipated to continue its strong performance in the coming years with projections pointing towards an astounding value of USD 0.7 trillion by 2024. Between 2024 and 2028, an annual growth rate of 3.03 per cent is expected, resulting in a market volume of USD 0.80 trillion by the latter year.
The Takaya development has been crafted with meticulous precision, ensuring maximum functionality and comfort and attention to detail meeting the highest standards of quality for residents. It is integrated with innovative smart building management systems that employ cutting-edge technologies to reduce energy consumption and operational costs. Upscale features of the development include – outdoor sports courtyards, leisure pool, kid’s pool, jogging track, kids play area, multipurpose rooms at each tower, an arcade lounge, co-working spaces, cinema/AV room, and more. Furthermore, the ground floor of each tower hosts a mix of retail outlets, food and beverage establishments, as well as other services. The development also features 150 parking spaces equipped with EV chargers.
With sustainability as one of its prime focus, ‘Union Properties’ is contributing towards mitigating the challenges posed by climate change and other environmental hazards. The integration of sustainable materials and designs ensures longevity, lowers environmental impact and reduces utility costs of the development. Takaya has been designed with high-performance facades that exceed green building guidelines and makes use of a large plot of approximately 450,000 square feet to create parks, a large central garden and other green spaces. Along with sustainability, the Company also prioritizes healthy living, and in this regard, Takaya offers sports facilities such as jogging tracks, padel, and basketball courts, lap pool and squash court, in an urban environment where open spaces are scarce, which will be a key selling point for the coming years.
Takaya’s unbeatable launch payment plan, which is 60 per cent due within three years of construction and 40 per cent due in three years post-handover, provides investors and end users with further cash flow flexibility. Union Properties’ efforts to reduce operational costs also provide the residents with a sustainable savings option, that supports value appreciation with time. The handover date for this flagship project is expected to be in Q4 2027. Looking ahead, ‘Union Properties’ continues to be driven by its mission to create unique and remarkable residential developments, as well as reshape the future of urban living. The company aims to accomplish several ambitious objectives, such as the launch of AED 6 billion projects just in the next 18 months. With a strategic vision and a strong commitment to excellence, ‘Union Properties’ is well-positioned to leverage new opportunities and play a pivotal role in Dubai’s thriving real estate sector by adding to the city’s extensive property portfolio.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
For every hotel spotlighting its historical bona fides, there are many that didn’t stand the test of time. Here, some of the most infamous.
3 min
Many luxury hotels only build on their gilded reputations with each passing decade. But others are less fortunate. Here are five long-gone grandes dames that fell from grace—and one that persists, but in a significantly diminished form.
The Proto-Marmont |
The Garden of Allah, Los Angeles
A magnet for celebrities, the Garden of Allah was once the scene-making equivalent of today’s Chateau Marmont. Frank Sinatra and Ava Gardner’s affair allegedly started there and Humphrey Bogart lived in one of its bungalows for a time.
Crimean expat Alla Nazimova leased a grand home in Hollywood after World War I, but soon turned it into a hotel, where she prioritised glamorous clientele. Others risked being ejected by guards and a fearsome dog dubbed the Hound of the Baskervilles. Demolished in the 1950s, the site’s now a parking lot.
The Failed Follow-Up |
Hotel Astor, New York City
The Astor family hoped to repeat their success when they opened this sequel to their megahit Waldorf Astoria hotel in 1904. It became an anchor of the nascent Theater District, buzzy (and naughty) enough to inspire Cole Porter to write in “High Society”: “Have you heard that Mimsie Starr…got pinched in the Astor Bar?”
That bar soon gained another reputation. “Gentlemen who preferred the company of other gentlemen would meet in a certain section of the bar,” said travel expert Henry Harteveldt of consulting firm Atmosphere Research. By the 1960s, the hotel had lost its lustre and was demolished; the 54-storey One Astor Plaza skyscraper was built in its place.
The Island Playground |
Santa Carolina Hotel, Bazaruto Archipelago, Mozambique
In the 1950s, colonial officers around Africa treated Mozambique as an off-duty playground. They flocked, in particular, to the Santa Carolina, a five-star hotel on a gorgeous archipelago off the country’s southern coast.
Run by a Portuguese businessman and his wife, the resort included an airstrip that ferried visitors in and out. Ask locals why the place was eventually reduced to rubble, and some whisper that the couple were cursed—and that’s why no one wanted to take over when the business collapsed in the ’70s. Today, seeing the abandoned, crumbled ruins and murals bleached by the sun, it’s hard to dismiss their superstitions entirely.
The Tourism Gimmick |
Bali Hai Raiatea, French Polynesia
The overwater bungalow, a shorthand for barefoot luxury around the world, began in French Polynesia—but not with the locals. Instead, it was a marketing gimmick cooked up by a trio of rascally Americans. They moved to French Polynesia in the late 1950s, and soon tried to capitalise on the newly built international airport and a looming tourism boom.
That proved difficult because their five-room hotel on the island of Raiatea lacked a beach. They devised a fix: building rooms on pontoons above the water. They were an instant phenomenon, spreading around the islands and the world—per fan site OverwaterBungalows.net , there are now more than 9,000 worldwide, from the Maldives to Mexico. That first property, though, is no more.
The New England Holdout |
Poland Springs Resort, Poland, Maine
The Ricker family started out as innkeepers, running a stagecoach stop in Maine in the 1790s. When Hiram Ricker took over the operation, the family expanded into the business by which it would make its fortune: water. Thanks to savvy marketing, by the 1870s, doctors were prescribing Poland Spring mineral water and die-hards were making pilgrimages to the source.
The Rickers opened the Poland Spring House in 1876, and eventually expanded it to include one of the earliest resort-based golf courses in the country, a barber shop, dance studio and music hall. By the turn of the century, it was among the most glamorous resort complexes in New England.
Mismanagement eventually forced its sale in 1962, and both the water operation and hospitality holdings went through several owners and operators. While the water venture retains its prominence, the hotel has weathered less well, becoming a pleasant—but far from luxurious—mid-market resort. Former NYU hospitality professor Bjorn Hanson says attempts at upgrading over the decades have been futile. “I was a consultant to a developer in the 1970s to return the resort to its ‘former glory,’ but it never happened.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Chinese consumers watching the value of their homes fall are losing the confidence to spend on designer goods
3 min
How closely is demand for $3,000 handbags tied to home prices in China? Quite closely, it turns out, which is unfortunate for luxury brands.
Europe’s luxury stocks fell in early trading Tuesday after China’s economic planning agency failed to announce additional measures to kickstart growth that some investors had hoped for. The sector is still up 10% on average since Beijing launched its initial stimulus plans late last month.
Beijing hopes a cut to mortgage rates, and lower down-payment requirements for buyers of second homes, will jump-start the country’s troubled housing market. A package of loans to brokers and insurers to buy Chinese shares has had initial success at lifting the stock market.
Luxury spending in China has traditionally been more correlated with its home prices than with the financial markets or overall economic growth. Around 60% of net household wealth was tied up in property before prices peaked in 2021. Barclays estimates that falling home prices have destroyed about $18 trillion in household wealth since then, which is equivalent to roughly $60,000 per family.
This, along with worries about the wider economy, is hurting consumer confidence. Retail sales rose just 2.1% in August compared with the same month last year, according to data from China’s National Bureau of Statistics. When global luxury brands start to report their third-quarter results next week, Chinese demand is expected to have slowed since they last updated investors.
Flagging sales come at an unhelpful time for Europe’s luxury companies, which rely on Chinese consumers for a third of global luxury spending. After several bumpy years during the pandemic, luxury brands and their investors hoped that a comeback in Chinese spending would compensate for a slowdown among Europeans and Americans.
This looks increasingly unlikely. Luxury sales to Chinese shoppers are expected to shrink 7% in 2024 and by 3% next year, according to UBS estimates. As luxury brands have high fixed costs, including the most expensive retail rents in the world, a slowdown with such key customers could have an outsize impact on profit margins.
The last time the luxury industry went through such a rocky patch in China, barring the pandemic, was between 2014 and 2016 when Beijing was cracking down on corruption, including officials who were gifting Louis Vuitton handbags and Rolex watches in exchange for political favours. The global luxury industry barely grew for two years during China’s anticorruption drive, which also coincided with a property-market correction in the country. It didn’t help that shoppers in other markets were also tiring of logos back then.
Europe’s luxury stocks look expensive today compared with that time. As a multiple of expected earnings, listed brands’ shares now trade at a roughly 40% premium to their 2014 to 2016 average.
To justify the higher price tag, Beijing’s housing and wider economic stimulus would need to indirectly lift luxury demand. Measures rolled out so far may not be enough to slow the slide in home prices. China’s housing market is oversupplied by around 60 million units, according to Bloomberg Economics estimates.
New incentives to kick-start consumption are expected soon but will probably target mass-market products like white goods. China already rolled out trade-in subsidies for home appliances earlier this year and a range of consumption coupons.
None of this is very helpful for sellers of expensive luxury goods. For brands to see a recovery, Chinese consumers that spend anywhere from $7,000 to $43,000 a year on luxury products would need to feel much better about their finances than they currently do. Spending by this group has fallen 17% so far this year compared with the same period of 2023, according to a report by Boston Consulting Group.
Half-finished, abandoned housing estates are a big headache for China’s government, and are also on the mind of executives in Paris and Milan. Though the fortunes of luxury bosses likely isn’t high on Chinese officials’ priority list, their fates may be intertwined.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
