With the scarcity and uniqueness of the ancient fortress, which has become the leading real estate and luxury property, the investment in luxury properties such as the ancient fortress estate and vineyards is in the dark. The European Fortress, with its unique regional, cultural and historical value, is sought after by the domestic real estate industry investment professionals.
The following factors may explain the motivation for investing in luxury properties such as old castles.
1. Collection value
The collection value of the old castle is relatively long-lasting, and its historical nature is precisely one of its investment advantages. The potential for appreciation from its historical and cultural values is undoubtedly favoured by investors. Every ancient fort can be said to be a museum, from the stylistic design of the architecture to the layout and structure of the rooms, there is a high historical value.
2. Symbols of identity and status
The ancient castle represents an elite consumption, and the scarcity of the castle and the historical and cultural heritage behind it can highlight the social status and taste of the buyer. On a deeper level, the "owner" of an old castle is investing in a way of life, buying an old castle in Europe can have its freehold and the "old house" can be passed on from generation to generation.
3. Commercial added value
The investment value of the castle is also reflected in the value added to the business, the transformation of the castle into a museum, conference centre, golf course, hunting grounds, specialty hotels and other commercial premises is a very high investment potential. Built in the Middle Ages, ancient castles are generally hundreds of years old, and they generally integrate life, leisure, work, entertainment and other functions and occupy a large area, with a large structure and many rooms, the owner can open part of the area to the public, such as the hall, library, some bedrooms, gardens, lakes, vineyards, etc., or directly as a museum for visitors to visit.
Interest in investing in old castles is growing
Some of the purchasers bought the old chateau to acquire the winery. Cheng Haiyan, Chairman of Latour Laguens (Qingdao) International Wine Co., Ltd. has bought the old Chateau Latour Laguens in Bordeaux, France. This old chateau is located in the winery, Cheng Haiyan used the old chateau to invest in the development of winemaking business and improve the overall quality of the enterprise. For example, Yin Zhang, the president of a famous private company, bought the Vskan chateau in the Bordeaux valley in the south of France, which, in addition to business activities, has become a place to show his clients the strength of the company. There is a Hilton hotel in the UK that was converted from the Old Fort and attracts a large number of guests each year. An ancient castle related tourism industry has also emerged.
The ultra-high net worth individuals are the main investors in the ancient fort. The Wealth Report mentions that these ultra-high net worth individuals are increasingly focused on property and see it as their primary investment category. For ultra-high net worth individuals in Asia, properties make up an average of 38% of their portfolios. Residential property is the most popular investment category. (The number of billionaires in China is set to grow exponentially over the next decade, by a further 154, and China is set to become the country with the largest increase in billionaires in the world. (In terms of growth in the number of billionaires, Chinese cities will account for two-thirds of the top 30 cities in the world). The Chinese tycoon's love of real estate and collecting is evident in the investment in ancient castles.
Quinn's professional review of Ancient Castles in the UK
In the UK, various incentives that open the door to domestic investors have made the UK the number one investment destination for China in Europe. The UK's "circle marketing" is well represented in the old castle, where the investor gets it through specific channels and contacts rather than selling it through the market. It is true that an investment in an old castle is worth a lot, but taking a long-term view is the ideal investment option. Property in the UK is freehold, and owning the property means that the investor effectively owns the land on which it is located. Luxury properties, mainly ancient castles, have a unique investment and collection value due to their specific history and culture, as well as being government-protected buildings.
This article is contributed by Juwai Columnist, Quinn Lu.