Claudio Saputelli is a managing director and head of global real estate investment at UBS Wealth Management, the world's largest wealth manager.
Based in Zurich, Mr. Saputelli began his career as a computer scientist at Zurich Financial Services Group. He was previously a research economist at a global bank in Switzerland.
Mr. Saputelli spoke told us about what he sees as the crucial elements of luxury, why property taxes matter more for real estate than what’s going on in the news, and more.
Mansion Global: Describe your dream property.
Claudio Saputelli: I adore pretty, rustic chalets built using primarily natural building materials (such as wood, natural stone, etc.). I'm also particularly keen on historic homes that have been elegantly and stylishly renovated, ideally in the middle of a mountain village. The atmosphere of houses like that is truly unique.
MG: What does luxury mean to you?
CS: For me, luxury equates to well being. If I feel at ease in a house, then generally the whole package fits together; for example, the harmony in the architecture, the nature and quality of the building materials and the location of the property.
MG: What area do you think is the next hub for luxury properties?
CS: A hub for luxury property doesn't just spring up overnight. It generally takes decades before anything lasting develops. This is partly because hubs like that often require first-class infrastructure (airport, etc.). In addition, current global economic growth is too weak for new hubs to be able to develop. At the moment, it's more a case of existing hubs having to fight for their survival.
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MG: What's the biggest surprise in the luxury real estate market now?
CS: Time and again you meet investors in the market who equate luxury properties with expensive and elaborate building projects, but the crucial elements of luxury are still location, architecture and quality.
MG: Where are the best luxury homes in the world and why?
CS: In reality, there is no single luxury property location that works for everybody, but rather an optimum luxury destination for each individual. Globally, however, there are only a few destinations that merit the "luxury" label. Examples here in Europe include St. Moritz, Monaco, and London.
MG: What’s your favorite part of your home?
CS: The house has a nice little staircase that leads to a mezzanine under the slope of the roof, creating hidden romantic niches. Children often love to spend time up there.
MG: What best describes the theme to your home and why?
CS: History. I live in a beautiful, 300-year-old half-timbered house that was recently renovated. The ceilings, walls and floors have endless stories to tell about life over multiple generations.
MG: What’s the most valuable thing in your home?
CS: There is one original door in the house that was salvaged during renovations. It's baffling because it opens onto a wall.
MG: Best piece of real estate advice?
CS: Consider housing as long-term consumption, not as an investment.
MG: What's going on in the news that will have the biggest impact on the luxury real estate market?
CS: Day-to-day news with no significant geopolitical reach does not have any effect on the pricing of luxury properties. Property values are much more likely to react to the introduction or significant increase of local property taxes.
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MG: What is the best area now for investing in luxury properties?
CS:. I would certainly avoid any of the cities that are in the risk zone according to our recently published "UBS Global Real Estate Bubble Index" (Vancouver, London, Stockholm, Sydney, Munich, Hong Kong).
MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?
CS: Prime resale property with historic value. Older properties of outstanding quality often have greater appeal.
MG: What area currently has the best resale value?
CS: Switzerland, because of the unique landscape, the quality of the buildings with the highest construction requirements, and the stable economic and political environment.