The recession not only affected the economy, but brought speculative building and buying to a standstill. While the real estate market has re-stabilized in most areas of the nation, real estate investors and developers have been leery to begin speculative building on luxury real estate—with the concerns that buyers would be difficult to find.
The primary concerns, are that the is a plethora of preexisting luxury real estate on the market—that while at a high price point, is more affordable than new luxury real estate. However, developers around the nation are beginning to develop innovative new luxury real estate—and to their surprise and delight, finding buyers for their multimillion dollar speculative building projects.
Recently spec building has led to multimillion dollar sales in Los Angeles, as well as Aspen, and the East Hamptons. A 16,000 square-foot mansion on a 1.3 acre lot in Holmby Hills, Los Angeles estate was placed on the market at $48 million dollars—and the Italian developer Alessandro Cajrati Crivelli is confident it will sell with great speed. It is the infusion of buyers from around the world who are moving to the states, or looking for luxury real estate in the US that has developers building with confidence.