In the luxury real estate market, there is a persistent notion—one that is often misunderstood— that a property’s price depends not on its size, but on its scarcity.
Yet we continue to compare properties by square meter as if it were an absolute indicator. But in the luxury market, this approach is insufficient—and sometimes even misleading. Two 300-square-meter apartments can have radically different values. And the difference often has nothing to do with square footage…
Scarcity is the true driver of value
A property becomes expensive not because it is large, but because it is difficult—or even impossible—to replicate.
Scarcity can take many forms:
- an unobstructed view of a landmark or an iconic cityscape
- a unique address, on a historic street or in a highly sought-after micro-neighborhood
- remarkable architecture designed by a renowned architect
- exceptionally high ceilings or a protected historic feature
- or simply… the lack of a comparable offering on the market
In such cases, the property is no longer comparable. It stands out on its own.
The luxury market does not operate like a volume-driven market
In the standard real estate market, supply and demand are balanced by quantity. In the luxury market, the opposite is true: it is uniqueness that creates demand. A rare property attracts multiple buyers at the same time. And it is this competition—more than the square footage or amenities—that determines the final value. This is also why some “more ordinary” properties in prime locations sometimes sell for higher prices than larger apartments that lack uniqueness.
A square meter is a figure… not a truth
The price per square meter remains a useful tool for comparison. But it becomes insufficient as soon as you enter the premium segment.
For it does not measure either:
- the atmosphere of a place
- the vision of life it enables
- nor the uniqueness of its market positioning
However, in the luxury sector, it is precisely these factors that trigger the decision to buy.
What High-End Buyers Are Really Looking For
The most discerning buyers aren’t looking for “bigger.” They’re looking for:
- in a better location
- more exclusive
- more unique
- more irreplaceable
In other words: something that others won’t have.
Conclusion
In the luxury real estate market, value isn’t just a number. It’s something you see, something you feel, and above all… it’s negotiated in a context of scarcity.
Square meters describe a property.
Scarcity, for its part, determines the price.
Richard Bellanger | Founding Partner | LUXURYPROPERTIES.FR
