In marketing luxury real estate, location can play a big role in pricing a home for sale. The most exclusive luxury neighborhoods stand out in the buyers mind like popular luxury brands. Homes in neighborhoods that come to mind first often command the highest prices.
Some neighborhoods are more expensive because of intrinsic value such as proximity to amenities or to landmarks. Others are more desirable due to the presence of highly regarded people or simply offer the intangibles of prestige and bragging rights that cannot be duplicated even by homes one street beyond.
An interesting phenomenon is how a prestigious neighborhood can become its own brand. When individuals or a families relocate to a new city it is not uncommon for them to request showings in the well-known neighborhoods first. The rules of top-of-mind status thus apply to neighborhoods as well as personal or company branding.
We noticed that a certain retail street in Rome actually created a logo for the association of stores on the street to stand out in the minds of tourists and locals alike. Via del Babuino is located between the iconic Spanish Steps in Piazza di Spagna and Piazza del Popolo. Tiffany’s, Moschino and Chanel are located here. In 2004, Via Babuino was named as the "twin" to Madison Avenue (like a sister city). It may not yet be as famous as Via Condotti, home of the likes of Salvatore Ferragamo and Gucci, Botega Veneta, Louis Vuitton and Hermes. But, whoever decided to brand Via del Babuinio was definitely on the right track to attract upscale shoppers.
When you are showing homes to luxury real estate home buyers, pay attention to their need (or lack thereof) to impress others based on the selection of neighborhoods. Brand consciousness definitely applies to neighborhood selection and it will save you time to understand this as a buyer’s representative.
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