Private jets, the get away vehicle of choice for overseas luxury home owners
You’ve identified your perfect destination, you’ve found your dream house, you’ve sealed the deal and well, you’ve pretty much already packed your bags. The next most important consideration is, how are you going to get there? Welcome to the world of private aviation.
The Ultimate Flying Experience
I consider myself fairly well travelled, I’m fortunate enough to have been abroad for both business and pleasure and whilst the bucket list of places I want to visit is still pretty comprehensive, I can’t really grumble. And I don’t mean to show off, but sometimes when I fly I treat myself to a few of life’s little luxuries.
I might pre book my cattle class window seat to avoid being disturbed every 5 minutes by inconsiderate fellow passengers. I might even add on priority boarding to reduce the ridiculous amount of time I would otherwise spend waiting for someone to put their oversized cabin bag away. And sometimes, when I’m feeling really flash, I go for the extra legroom seat. Not because I need it, but because I can. That’s just the way I roll.
CAPTION: Enjoy the ultimate aviation experience from your own private jet.
Whilst I’m “enjoying” all the upgrades on my budget airline trip, there are of course those who can enjoy next level aviation. The kind of flying experience where your main concerns are how chilled the champagne is and whether or not you will run out before you get there. Yes, we’re talking private jets which for many, have become the only way to reach home.
Luxury Property Destination Trends and Private Jet Routes
With private jets increasingly becoming the get away vehicle of choice for overseas luxury homeowners, it’s little wonder that private aviation route traffic volumes are greatly influenced by property hotspot trends.
According to Knight Frank’s 2015 Wealth Report, which includes exclusive research from private aviation world leaders NetJets, the US retains its dominant position in the private jet market with 60% of all traffic starting and ending there. Its popularity can be attributed to a combination of the density of wealth as well as internal economic linkages.
Europe comes in as the second largest market and all eyes are on Russia which continues to represent a significant percentage of European aviation demand. Moscow to Nice/Côte d’Azur hit the number one spot in NetJets’ 2013 top ten route list, further confirming the ongoing significance of Russian wealth in luxury property markets.
London has always remained firmly on the radar of the luxury real estate investor so it’s of little surprise to learn that 30% of the most frequented European routes either start or finish in the UK’s capital, with traffic on the major route between New York and London continuing to gather momentum year after year.
Dubai and the broader UAE are seeing an increase in traffic which is helping the Middle East hold its position as the world’s third largest market however, how long they will be able to retain that title is brought into question thanks to strong challenges from China and Brazil who are both experiencing a significant increase in traffic.
2014 was a good year for Brazilian buyers of luxury property whose destinations of choice included France, Spain, Portugal and the UK, reflective of the fact that traffic from Brazil to Europe has grown 20% every year since 2010.
Finally Africa, which although a more fragmented market, appears on the NetJet list of top 10 fastest growing global routes for 2013 thanks Nigeria’s private jet hub of Lagos with Lagos to London coming in at number eight.
Established and Emerging Market Demands.
Anticipating wealth flows from one part of the world to another has become equally as important and significant as analysing it has. Whilst some international relationships in both flight paths and property investments are already established and therefore somewhat obvious, i.e New York and London, the most insightful data comes when we look at emerging-market demand.
Latin American investment in Europe is a great example. Traditionally overshadowed by the huge waves of investment flowing into Miami and other US hotspots, the breadth of routes flown into key EU markets from Brazil, Argentina and other key southern American hubs, reveals a closer relationship between these markets than is often recognised.
As for the future and based on what we already know about the relationship between private jet routes and luxury property destinations, it’s looking rather encouraging for the European and North American real estate markets as NetJets’ fastest-growing route list reveals huge potential demand from investors in Asia, Africa, the Middle East and Latin American.
Top 5 Routes
- Moscow > Nice/Cote de Azur
Miami > New York
New York > Los Angeles
New York > West Palm Beach
London > New York
Top 5 fastest growing routes
- Nice/Cote de Azur – New York
Dubai > London
Pittsburgh > New York
Houston > West Palm Beach
Summer Holiday and Second-Home Hubs
The second home real estate market is big business and key destinations such as Olbia (Sardinia) and Ibiza have enjoyed annual traffic increases of 14% and 17% respectively, confirming their growing importance as summer holiday and second-home hubs. Over in France, Nice remains a major destination as does St-Tropez, access to which is further facilitated by the fact you can now fly in to La Môle.
CAPTION: Nice/Côte d’Azur is the most popular private jet traffic destination of 2013.
That’s summer taken care of, now what about winter? Alpine airports, such as Sion and Chambéry are enjoying a growth in traffic which would suggest a revival in demand for property in the popular nearby resorts of Verbier, St Moritz and Courchevel. If winter sun is more your thing, then consider the Maldives, the Caribbean and the Seychelles, where the private jet traffic volume confirms the growing strength of luxury real estate in long distance resorts.
The Profile of a Private Jet Passenger
It’s fair to say, there’s nothing particularly unexpected in the typical profile of a private jet passenger. Over 80% are male, aged between 40-55 with the dominant profession being Private Entrepreneurs. The source of wealth tends to traditionally be from the finance and the oil and gas industries however over the last 12 months NetJets reports that flyers from the property industry have returned and are being joined by owners of technology companies.
So here’s to you Mr Private Jet Flyer, I will raise a toast to your success in life next time I am at the airport. That’s after of course I’ve paid my unreasonable excess baggage charge for being 1kg over my limit and once I’m finally through security having been stuck behind that one person who despite numerous signs, warnings and announcements, just can’t take their belt off and empty the shrapnel out their pockets until the very last minute.
Source: Knight Frank
TAGS: Cote d’Azur, Featured, Knight Frank, Private Jet
Spanish: Los jets privados, el vehículo que eligen los propietarios de viviendas de lujo en el extranjero
German: Privatjets, das Fortbewegungsmittel der Wahl für Besitzer von Luxus-Immobilien in Übersee
Portuguese: Jatos privados, o veículo de eleição dos proprietários de imóveis de luxo no estrangeiro
French: Les jets privés : un véhicule de choix pour les propriétaires de maisons de luxe à l’étranger
Italian: Jet privato: il veicolo per una breve vacanza scelto dai proprietari di case di prestigio all’estero