The costs in community in luxury property are much higher than in normal real estate, and this is due to the exclusive services that are offered and thus enjoyed by the owner. It is a well-known fact that the community expenses of a flat usually vary depending on the services that are available and that the tenant can use and enjoy. For instance, a house with a concierge, a swimming-pool or play areas will always have higher costs of community than one which does not provide these benefits. In this blog some time ago, we wrote an article about the importance of communal areas and the reason why they had become more and more valued by the homebuyer. The confinement we have had to live through, due to the pandemic, has created a need to widen the space. In many cases, the owners have had to have the house turned into a place of work as well as of leisure. Therefore, this has led to an increase in the community expenses that the owner must take on. However, what happens in high standing property? Which are normally the community costs of luxury property? Although the expenses will depend on three factors we will now see how they vary considerably from one property to another. We can have an X-Ray that will help us get an idea of community expenses in exclusive property. Let us take a look at it in detail.

A COST OF THOUSANDS OF EUROS

We can say that, nowadays, the community expenses of luxury real estate can amount to a figure between 700 and 3.000 euros per month. Real estate which is being sold in the exclusive residential development of La Finca in Pozuelo de Alarcón, usually has community expenses that range from 700 to 1.000 euros per month. Let us say that this could be the first step in the ladder regarding community costs in luxury housing. However, if we go to Barrio de Salamanca, and specifically to the luxury housing promotion located in 99, Calle Lagasca, then the community expenses are usually between 1.500 and 2.000 euros per month. And if we look further at something even more exclusive such as real estate in Complejo Canalejas, located in the very centre of Madrid, then the monthly community expenses can amount to 3.000 euros. These are really staggering figures but they will do to get an idea of the community costs in very high standing property. We can say that there are three factors which determine the price: firstly, the type of housing which has been bought (community costs are higher in new housing). Secondly, the number of houses included in the promotion (the less number of neighbours, the higher the costs), and thirdly, the services that are offered to the owners. The first impression we get when talking about community expenses of several thousand euros per month is that it seems crazy that anybody would want to pay such a large amount of money. However, nothing could be further from the truth. As a sign, we can say that most promotions of exclusive property that come on to the market are practically sold the moment they are advertised. Therefore, it seems clear that community expenses, however high they may be, prove no trouble for this kind of homebuyer.

BUT, WHAT SERVICES ARE INCLUDED?

Many people will ask themselves what services are paid for in an exclusive property community. The answer could be as many as can be imagined, nonetheless, we can name a few. For instance: 24 hour security, a swimming-pool, a gymnasium, a jacuzzi, a wine cellar, a cigar cellar, a Turkish Bath, a sauna, a physiotherapist, a urban vegetable garden, a social club, child care, a personal driver and even a car wash. In addition, the most exclusive properties offer an exquisite hotel service; these properties are known as branded residences because their community expenses are much higher. This hotel service includes all the comforts offered by a 5-Star hotel, such as restaurants, cleaning service, bellboys and so on. In any case what really puts up the price of community costs in luxury property are the expenses caused by the hiring of staff, as for instance, a concierge, security, valet parking service, a gardener and so on. This is also the case regarding community costs in normal real estate.