They used the profits to fund more luxurious development projects that people say are not affordable and in poor locations. Our question is, why do so many property developers see affordability and luxury as polar ends of the same scale? We think this way of thinking is holding back property development.
Thinking about luxury
What is luxury? Is it something you buy? The official dictionary definition of luxury is ‘a state of great comfort or elegance, especially when involving a great expense’. But why does being comfortable and elegant have to come at a great expense? Imagine you had an old settee that you could never give away. Despite some slight wear and tear, it’s the most comfortable chair you’ve ever sat in. It’s worth next to nothing, but to you, it’s invaluable. This is luxury. It is not something that comes exclusively regarding the amount you spend. Instead, it is an experience, a feeling you get when you are surrounded by the things you want, not the things that cost the most. Today, more and more people are finding that what they want to be surrounded by, is a house they own, only to see they have been priced out of the market.
What does this mean for property developers?
Knowing that you are building an experience, rather than building expensive, opens up so many doors for property developers. The surplus demand for housing and a general increase in house prices has led to a reluctance for developers to produce housing they know they might not be able to sell. So, they cater to the rich. But, by tapping into affordable luxury, developers can start to combat the out of control demand for housing and make a profit. Affordable luxury means that no matter how big, small, or expensive the development you are building is, there will always be someone who can see their future in it. They will want to buy it.
How we build affordable luxury
Developers make their money when they choose the right land or property to develop, not when they sell it. Tapping into development sites on the outskirts of London, and the surrounding counties means quality housing is produced affordably. These areas are more affordable to low and middle-income earners who have been priced out of London. This is the first step in building affordable luxury. By creating a variety of property types and property sizes in these areas, quality is maintained and so is affordability. Doing so means you also appeal to a broader market of potential buyers. The key to doing this successfully is having the experience and knowledge to determine the best sites for development, and that’s where Broadwing excels.
We at Broadwing have the expertise to be able to seek out these opportunities for affordable housing and create something special for our investors and first-time buyers. Get in touch with us today to see how we are making our mark on the demand for affordable housing.