“The segment of luxury properties is an exclusive one. Basically, until recently, only big investors could get access to such properties. Through the launch of luxury real estate partitions, these properties become available to a larger number of co-investors,” stated Catalin Scripcaru, CEO & President CERTION.
According to Scripcaru, access to the luxury property market is possible even when the available capital is insufficient or one does not want to allocate a large amount in a single property and this is when real estate partitions come in. The basic idea behind real estate partitions is that people don’t want to buy a luxury property outright. Real estate partitions refer to owning such a property together with other co-owners.
“Sure, you can buy a luxury property in co-ownership with your best friends or other family members. Unlike the other properties purchased by sole owners, luxury real estate partitions based on the concept of shared-ownership, offer us, in the same budget, the possibility of diversifying our possessions, therefore also of the risks inherent in real estate purchases”, explained Gabriel Alexandru, CFO CERTION.
According to Alexandru, in terms of the revenue generated, there are two types of real estate partitions: real estate partitions in private residences – with closed circuit, for own use exclusively, without income, and real estate partitions in hotel suites – with open circuit, for mixed use, with fixed or variable incomes. However, both types of luxury real estate share purchases have the advantage that they can be successfully used as a long-term inflation shield.
In October, the list of private luxury residences and hotel suites to be sold by CERTION through the real estate partition system includes two penthouses, one in each of the hotel and branded residence projects, GALILEO and VOGH Olimp.