Celebrity Real Estate

Published by julia | Filed under Real Estate, Shout Outs, Uncategorized

To many, a home is a definition of one’s personality. The mere mention of celebrity real estate conjures up mental images of plush, palatial houses, complete with the finest finishes and well-manicured lawns. According to experts, a single entry-level domicile for an upcoming star costs nothing less than 1.4 million U.S. dollars in Los Angeles. Many celebrities not only own and reside in such abodes but have also taken it a step further and invested heavily in real estate as a profit-making venture.

The most extravagant sale ever recorded to date is that by steel tycoon Mittal Lakshmi, forking out a cool 117 million sterling pounds for Kensington Palace Gardens. It is a boulevard over half a kilometer long and is currently London’s most elite address. Current residents and occupiers include the Embassies of Russia, Nepal and Israel as well as the official residences of ambassadors Saudi Arabia, Kuwait and Japan. Young celebrities too have similar buying power. To illustrate, American rocker Avril Lavigne, living on her own bought a six-bath, five-bedroom house in Beverly Hills. The house also boasts a pool and tennis court, totaling a market price of 5.8 million U.S. Dollars. This goes to show that these houses scream extravagance. A realtor mentioned in jocular fashion that the only thing that would justify such prices would be if they were covered in gold. A well renowned boxer known by the moniker ‘Iron Mike’ bought a fifty six thousand square foot mansion with 38 bathrooms, 18 bedrooms, a gymnasium and a nightclub. His intention was to make a statement of how wealthy he was. 

Celebrities have given real estate a shot in the arm through product promotions. Many celebrities are lending their names to housing projects so that buyers may identify with them regardless of their prices. It has proved a successful marketing gimmick as some celebrities have been co-opted into design teams to develop estates in countries such as Dubai. However, celebrities do not get any special treatment when it comes to prices so they hardly ever get a bargain, as full price is demanded upfront.

The housing downturn in the United States has affected celebrities too. They are forced to accept losses of up to 2 million dollars. In December 2007 alone, only 4430 houses were sold, a 48% shortfall compared to the previous year. Usually there is a waiting list for abodes of over 20 million U.S. Dollars but for the first time in decades, the rate is petering out.