French-born developer Alexandre Allard has turned his sights to South America. He is currently developing the largest mixed-used project in Sao Paulo, Brazil, called Cidade Matarazzo. The development, located in the Paulista Avenue corridor of the city, is expected to open in 2019, with 122 residential suites, and incorporates the historic former Matarazzo hospital. Designed by Jean Nouvel and Philippe Starck, the project includes condominiums, a retail component and a six-star Rosewood Hotel.
Previously, Mr. Allard restored the Palace-Hotel Royal Monceau in Paris.
We caught up with him to discuss possibilities in Latin America, the importance of restoring heritage sites, and much more.
Mansion Global: Describe your dream property.
Alexandre Allard: I have a lot of them. But I’d say my dream property is a small boat where I can go anywhere in the world alone. I long for that—for the absence of people. And the presence of me.
More:Excessive and Flashy Decor Is Out, Says Designer Taylor Spellman
MG: Do you have a real estate property that got away?
AA: There are two of them. They were both absolutely amazing. One was on Qianmen Street in China, right near Tiananmen Square. It was a Chinese mansion that I managed to get supported by UNESCO. We worked on it for four years, trying to renovate it and it didn’t end up happening. At that moment, no one wanted that property, but it’s the most central property in Beijing, which is also the center of the world.
The other property was in France—Hotel de La Marine in Paris. It’s on Place de La Concorde. I had convinced the French president at the time that I should create a gigantic house of creativity. The day they were going to start the auction, which I was sure I was going to win, the Conservative Party came in and opposed it. This is one of the most historic parts of Paris—where Napoleon was crowned, where Marie Antoinette was beheaded. They didn’t want the property to go into private hands. But I was going to do a mansion of creativity. France has lost a lot of that to other places, but Paris can still be the capital of creativity. Ask any creative person, Paris is where they want to be. That’s why I was going to create a giant space for artists and craftsmen.
MG: What does luxury mean to you?
AA: It is a crossroads of high creativity and high quality. It’s art. But luxury has become easier to buy, so it’s lost its value in some ways. The worst are the five-star hotels, who all call themselves "luxury."
We spoke to @realseanconlon of @thedeedcnbc about what the future holds for #LuxuryRealEstate https://t.co/LYjMgPahze pic.twitter.com/2k4KxgGTSb
— Mansion Global (@MansionGlobal) May 17, 2017
MG: What area do you think is the next hub for luxury properties?AA: America is still a wealthy market, and Americans will travel more north to south rather than east to west. We’ll see them buying homes in Canada, the Caribbean (places like St. Barts and Santo Domingo) and South America. The next great real estate boom will be along vertical axis—from Greenland to Ushuaia in Argentina.
There’s a lot of room for growth in Latin America in terms of prices. In Sao Paulo, a place with 79 billionaires, you can buy an apartment for the price of a toilet in Manhattan. Life there is amazing, and there’s just a lot of opportunity.
MG: What’s the biggest surprise in the luxury real estate market now?
AA: The physical concentration of people. If I want to make things happen, there are places where I have to be. California’s Silicon Valley is the first example. People working in the digital world could be anywhere, but they’re always in the same place—there’s a value to being physically together.
That’s reassuring for the future of the luxury real estate market. There are no more deserted islands, and people are moving less and less.
More:This is the richest city in each state in America
MG: Where are the best luxury homes in the world and why?
AA: Luxury homes are in places with history and culture.
Honestly, it’s impossible to beat a house on the coast of Italy or France. You have everything—the landscape, the architecture, the culture that surrounds you. And all of this elevates you.
Sure, it’s nice to have a contemporary house in the desert somewhere, but at the end of the day it’s about communing with human nature.
MG: What’s your favorite part of your home?
AA: My bed. It’s the only place I can stay still, open my eyes and see what’s in front of me. If I’m in an apartment, I put my bed in front of the living room. If it’s a house by the sea, I want to see the view. I like to see everything in front of me.
More:NYC Developer Sees Real Value in Urban Centers Around the World
MG: What’s the most valuable amenity to have in a home right now?
AA: Light. We have discovered that light makes us happy. Living in dark places makes us depressed. Buy a smaller apartment, but make sure it’s south facing.
MG: What’s your best piece of real estate advice?
AA: Buy the best you can afford.
MG: What is the best area now for investing in luxury properties?
AA: Sao Paulo, and I’m not just preaching for myself. It’s about the prices and the value. We probably have the best development in terms of quality, and it’s $900 a square foot; elsewhere in the city it’s $350 a square foot.
More:Click to Read More Luxury Real Estate Professionals Share Their Insights
MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?
AA: I love places with soul. That’s why I’ve been running after all these heritage sites all over the world. I believe in the soul and energy of a place. Of course it has to have south-facing views, but it’s more that that. It’s important to reuse space. People are going to come back to that.
MG: What area currently has the best resale value?
AA: Hong Kong and New York. Even though they’re falling somewhat, they still have the highest prices.