DEMAND for Spanish property could rocket if sub-orbital space travel takes off, according to an expert.
Mark Schtuklin, author of the Sunday Times column The Spanish Property Doctor, said if the advanced method of travel became a reality, the real estate market could go through a boom.
“Increased access to beautiful places like Spain nearly always drives up demand for real estate,” he said. He likened sub-orbital space travel, where craft reach supersonic speeds during a brief launch into space, to advances such as fast trains and low cost air travel.
“Changing technology like fast trains, or new business models like low cost air travel have helped lift the demand curve. If sub-?orbital space travel becomes a reality, and not just limited to billionaires, then I imagine it would increase demand for high-end property in Spain. However, I can’t see it happening anytime soon.”
His comments follow the release of the 2014 Wealth Report by estate agent Knight Frank, which predicted a radical shift in real estate markets across the globe if sub-orbital flights were to become more readily available.
Sub-orbital flights are able to cut the London to Sydney journey time down from 21 hours in an aircraft to 2.2 hours, New York to Moscow from 9 hours 20 minutes to just one hour, and San Francisco to Singapore from 16 hours 50 minutes to 1.8 hours.
Liam Bailey, Knight Frank’s Global Head of Residential Research, says: “By traveling outside the Earth’s atmosphere, gravitational forces will allow spacecraft to travel at over 4,000 miles per hour, so breakfast in Mayfair could easily be followed by lunch overlooking Sydney Opera House.
“It doesn’t take much imagination to see the dramatic impact this innovation could have on global luxury property markets.”
London is currently the leading overseas property destination over New York because it is more convenient for African, Middle Eastern, Russian and European Ultra High Net Worth Individuals. But with the advent of sub-orbital travel all that could change within a decade.
“Take second homes in Europe. Right now, demand is mainly restricted to European investors, who try to limit their travel to less than two hours,” added Mr Bailey. “In future, that same time limit could allow Chinese or Indian investors to pop over for the weekend to visit their Tuscan farmhouse.”