The Appeal of Mega Mansions for Los Angeles Luxury Home Builders

The Appeal of Mega Mansions for Los Angeles Luxury Home Builders

by Arie Abekasis

When news of the $500 million Niami mega mansion in Bel-air hit the real estate industry a year ago, developers and agents were stunned – this property was going to be a game-changer. Niami will be double the most expensive mansion sold on record in London.

niami mega mansionIt will also be 3.4x more expensive than the most expensive property ever sold in the United States, a $147 million East Hampton home sold to Barry Rosenstein. Once finished, it will be the largest and most expensive home built in the modern world. This mega mansion will also cement Nile Niami, the film producer and developer, as one of the largest home builders in the world.

Nile Niami has played well in the luxury Los Angeles home builders category for a while now. However, what makes his latest project mind-boggling is it’s almost seven times more expensive than his biggest recorded sale, a $70 million mansion sold to video game maker, Markuss Person. The project is so ambitious that it leaves many industry experts simultaneously incredulous and anticipatory of the final sale price (if and when it happens).

With its floor space exceeding 100,000 square fniami home theatreeet (over 2 miles), Niami mansion will be larger than the mammoth Windermere, Florida Versailles mansion that’s currently under construction. It will have its own casino, four swimming pools, and a 5,000 square foot master’s bedroom. The property will sit on its own hill and provide 360 degree views of Beverly Hills, the Los Angeles downtown area, the Pacific Ocean and San Fernando Valley.

Why Build Excessively Large on Spec Homes?

Sherman_Oaks-A_028_PoolLos Angeles home builders have enjoyed a boom in the luxury homes market in the last three decades. Records on the largest and most expensive homes sales keep getting broken. Just when the market thinks a listed home is too expensive for its own good, an eager buyer comes in and swiftly closes the deal. These series of high-ticket home sales have inspired more residential home builders to take risks with luxury on spec homes, or homes built without lined-up buyers.

Tastes just keep getting grander in the luxury market. Before, 20,000 square feet was already considered excessive. Nowadays, large home builders have many projects in the 50,000 square foot range. For perspective, that’s only 5,000 square feet shy of The White House’s 55,000 sq. ft. floor space.

The rich is also expected to get richer this year. Apparently the divide between the top and middle class has only widened. Real estate professionals have seen this in the high demand for homes in the $100,000 range and lower demand for those above $500,000. Residential 79085824home builders who have existing affordable housing developments are now reaping the rewards, while large home builders who have kept their developments focused on the luxury market are experiencing high inventories and longer holding periods.

interior_3-compressorHowever, on the flip side, those clients who can afford the largest home builders can decide to go substantially bigger. And this partially explains the willingness of home builders to take on even bigger on spec homes. If these large home builders ultimately win the sale on these mega mansions, they win staggeringly big.

Finally, mega mansions, such as the Niami, are not designed by residential home builders alone. Just as Donald Trump’s Mar-a-Lago is a home and a pseudo hotel, these mega mansions are expected to be turned it into some form of a business, either partially or wholly. Niami’s primary Los Angeles home builders can see it as a possible venue space. And there is little doubt that it will be one of the most stunning venues in the entire country.

The Future of the Mega Mansion

tuscan-home-plan-projectGiven the improvement in the US economy and the increasing wealth of the already moneyed, Florida’s Versailles and Niami might not be the last of the new mega mansions from the largest home builders that we’ll hear about.

However, there probably won’t be a deluge of new construction anytime soon as well. There were only five mega mansions sold for above $100 million in 2014. And the listings for the properties above $350 million are still sitting longer waiting for a buyer.

Until the middle class’ income gap starts to inch closer to that of the top earners, the pool of clients for the mega mansions is not envisioned to grow substantially.

Realtors will be looking at the same pool of people to further upgrade their already luxuriously large properties. It is only when the middle class can upgrade their homes that the future of mega mansions can turn brighter than it ever has. Until then, the world can look to properties such as Niami to envision what that would look like.

Create a Plan for Maximizing Your Investment

Strong economic indicators along with greater demand are two extremely important factors to look for when deciding to build your luxury home—whether you’re buying it for your personal use or strictly as an investment.

Why?

Because if and when you decide to sell your property, you want to be in a place where there is enough demand to be able to secure a premium price and return on your investment. Right now, Los Angeles is one of the few places in the country where these conditions exist in a strong enough fashion to lend confidence to smart building projects.

In fact, Los Angeles has taken its place in the list of “The Top 10 Booming Markets for Real Estate Development” across the country and comes in at number 9 in Moneywatch’s Top 10 Luxury Real Estate Markets around the world.

By | 2017-01-18T16:30:45+00:00 May 11th, 2016|luxury builders|0 Comments

About the Author:

Arie Abekasis - Founder of the Diditan Group Inspired by years of experience in the fashion industry, Arie Abekasis infuses the elegance and beauty of the Mediterranean into his company's portfolio of homes. The Diditan Group builds stylish homes in a range of sizes, from condominiums to sprawling estates. They design, build and finance fine Tuscan, Modern, Contemporary, Cape Code and Mediterranean-style luxury homes, condos and investment properties with the assistance of the top engineers, architects and craftspeople in the home building field. Offering nearly unlimited customization preferences, Arie Abekasis strives to provide superior craftsmanship, calling upon well-established architects, engineers, and designers to erect homes with all the sophistication, elegance, and functionality demanded by today’s discerning consumer. Along with providing comprehensive luxury living directly inspired by the enchanting ambiance of Italian countryside, creating an innovative internal and external atmosphere of beauty and serenity remains Arie Abekasis’ ultimate goal. Moreover, working harmoniously with Diditan Financial, an organization established in 2007 with a purpose of granting customers potential access to effective financial assistance, Diditan Group makes securing an affordable, hassle-free loan easier than ever. For a preview of residental and commercial properties built by Arie visit: https://plus.google.com/+Arieabekasis/collections.

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