ELITE ACCOMMODATION AS IT IS…

In advertisements about the most luxurious new buildings in Baku, you can see terms like "premium" and "de luxe". These magic words sound captivating and make wealthy buyers open their nurses even wider. It is clear that in essence, these words define the level of apartments and the building as a whole. But at times, even the aforesaid wealthy buyers find it difficult to explain what these words mean and what class these or other apartments belong to, although they are probably interested in understanding the very subtle points of this issue and in choosing the right place to invest large sums of money. Sometimes, even those who offer luxurious accommodation and juggle with the aforesaid terms cannot explain what they mean either. As a rule, their arguments are limited only to listing technical characteristics and other qualities of the house, as well as to an argument like "This is the best thing you can buy in Baku!" Meanwhile, the idea like "the class of accommodation" turns out to be quite vague.

In search of a single denominator

In the Soviet Union, the last official document that classified accommodation was the state standard of 1989, under which all houses were divided into hostels and apartment blocks. In the next decade, it became clear that such an approach to this business, to put it mildly, is naive. The crucial 1990s, which opened a "window to Europe" for the whole former Soviet Union, inundated builders, estate agents and developers, as well as their clients - customers of the property market - with loads of information that had to be taken into account in this sphere.

But it was not easy to take it into account: in Russia, for example, only in 1996 did one of the private companies finally make an attempt to divide primary accommodation it offered into two classes - A and B (of course, this classification was taken from foreign experience). However, things started going better afterwards… Every major company thought it a matter of honour to come up with it own variety of housing classification. However, the state has not reacted to this yet - relevant organizations explain that they are responsible only for social housing (cheap accommodation designed for lower-class people). Construction specialists from government agencies and estate agents themselves say that the class of accommodation which is defined mainly by the location of the building, has turned out of a stable idea into a "floating" one because of active construction work in new areas of metropolises (first of all, the capital city). So there is no point in including it in legislation. Let the realities of life become the natural driving force of this process.

The same thing is happening in other post-Soviet countries which, just like Russia, have started trying foreign standards in classifying accommodation, including new buildings. At the present time, none of the CIS countries, including Azerbaijan, have adopted any official state documents on this issue, and all such systems result from initiatives put forward by individual companies working on the real estate market.

But these types of classification, which still have not been systemized, are mainly "for domestic consumption" - for market specialists. A client is offered some set of characteristics that is described as complete for this class. As a result, the inexperienced client sometimes is happy about the characteristics that are actually compulsory for really elite accommodation - for example, a spacious underground garage designed for several cars. Meanwhile, according to all types of classification, the garage in accommodation of this type should also have a heated entrance, access to lifts and a carwash, and houses of the highest level should have separate equipment to wash the wheels. This is only one example. There are hundreds of such characteristics…

Economy class - cheap and angry

Builders, estate agents and real estate agencies divide the whole property market into economy class, business class and elite class facilities (this does not include cheaper and less prestigious social housing). On the whole, this "ladder" has been copied from the classification of hotels. But the highest stair of this classification - the elite class - is divided into several smaller ones just like the classification of offices. As a matter of fact, the differences between classification systems are based on the gradation of elite housing. But we'll come on to that later...

Everyone knows what social housing is. As for the economy class, it is an idea that deserves a separate comment. In the advertisements of companies that offer housing, this word is almost invisible - it does not sound posh. However, this is the largest segment of the real estate market, and most of the mortgage loans are allocated for this type of housing. This housing can be improved new buildings made of concrete blocks and monolithic houses built of bricks. The standard requirement is the existence of a parking area, glass balconies and double pane units in windows. In some standard houses you can even buy a flat with a free layout.

Business class accommodation is more expensive than the economy class, but it is more comfortable and is of higher quality. These are monolithic houses where the number of flats is not more than 150 and the area of flats begins from 60 sq.m. In these houses, the ceilings are just like in elite class accommodation - no less than three metres high, and there are also large kitchens and several water closets. A free layout and developed infrastructure are mandatory (incidentally, one bed-room flats are very rare in houses of this type). Unlike elite accommodation, these houses do not have a central air conditioning system and their own boiler houses, while video cameras cover only the entrance to the lobby of the building. Instead, an underground parking area is mandatory - this is the first sign that the building belongs to the business class, not to the economy class. In economy class housing, parking areas are always on the ground, while in business class housing carparks can be on the ground only in exceptional cases - when the ground does not allow building an underground garage.

Economy class and business class property is an excellent option for middle-class clients. It is good for living, but does not really look attractive in terms of investment. The thing is that property of this price category is very susceptible to hikes and falls on the market - it quickly becomes expensive when the prices soar, but at times it also quickly cheapens in the event of stagnation. Elite housing slowly becomes expensive and cheap, and sometimes it does not cheapen at all, even if the prices go into freefall, because clients interested in this category pay not for square metres and other construction qualities, but for prestige.

As for elite housing, three classes stand out here. But different companies call them differently - for example, de luxe, luxe, premium or A, A-, B or KP1, KP2 and KP3. The letters are preferred by companies which think that words have an undesirable emotional colour. But in our country such classification is not popular - for our clients beautiful words define whether a company's offer is prestigious or not (the East is a completely different matter).

Another type of classification divides elite class housing into "club houses", class A and class B. Club houses are a special segment - "a state within a state" - elite of the elite. Those who came up with the idea of such a house - a house for several families who know each other very well and belong to high-level society - have a special view of what "the ivory tower" should be like. Here is just one small detail: these houses, although they are fitted up with all sorts of expensive and state-of-the-art stuff, have no garbage chute. This is a sign of the highest class - it is planned that garbage should be taken out by servants. These houses definitely have baths for washing dogs' legs, equipment for storing fur and many other conditions for luxurious life. I think it will be a long time before club houses appear in Baku. And there is a question as to whether they will be needed here. People they are designed for can arrange all that in their mansions outside the city, instead of sharing their elite house with other families, because there is no chance there to make your apartment stand out externally.

Prestige criteria

The criteria for dividing the elite segment into levels differ according to types of classification. We can highlight several main criteria: price, location, construction and technical features, the territory outside the house, social infrastructure, organization of management and exploitation. The combination of the first two features is the main criterion for identifying this or other type of accommodation as elite. The construction of luxurious houses in modest areas of the city does not yield any profit - you can't persuade a customer that it is prestigious here, but it is even less profitable to construct middle-class housing on expensive land in the city centre. In our city such areas are the entire coastline on the boulevard, as well as the area outside the Sahil and Baksovet metro stations.

Apart from its location in this or other area, elite housing should definitely offer an excellent view from the window - it should not front an industrial area - and must should be located near monuments of architecture, water pools and green areas (incidentally, the windows should front at least two sides). Unfortunately, in Baku few builders follow this rule. As for a good area outside the house, there is nothing we can say about it - de luxe, luxe and premium housing should have a public area outside which comprises from half to one third of the building's living area. However, one of the types of classification suggests that a premium house may not have an internal courtyard. New buildings in Baku, located in the historical centre of the city, which are regarded as elite housing, often do not have any courtyards so they do not belong to the categories de luxe or luxe no matter what the builder says.

Different companies have different views regarding the importance of some features of elite housing. For example, penthouses are usually regarded as an integral attribute of these houses. However, experience shows that in the same Moscow, penthouses are not in great demand (as a result of which some Moscow companies have reviewed their principles on that score), while in Baku penthouses are selling like hot cakes. Maybe the reason is that unlike Moscow, we have a mild climate and a clear sky almost all year, and maybe not. Either way, such "details" are also an objective reality that has to be taken into consideration.

Another important issue is the number of apartments in an elite house. It is believed that a de luxe house should have 40 flats maximum, luxe - no more than 80 and premium - no more than 120. But there are extremes as well - some builders are sure that an elite house can have as many flats as possible as long as there are all proper conditions. Others attribute club houses to a special category and say that there should not be more than 10 flats there. In any case, Baku builders ignore the principle "less flats" in order to make more money, and their clients do not really object to this. Another specific feature of flats is their metric area. It is believes that de luxe houses should not have apartments smaller than 130 sq.m. The number of storeys is important as well - there should be no more than 11 storeys in a de luxe house, and no more than five storeys in a club house. This criterion is also usually ignored here despite the seismic situation. Most of the clients rush to get "to the top", so those flats are in demand.

There is also one more delicate nuance - an equivalent environment achieved through a stringent selection of residents. Various methods are used to this end - questioning those who want to buy a flat, getting references and getting the consent of residents who have already bought flats in this house. In any case, opinions are poles apart as well. Some estate agents think that the high price is a mechanism of selection in itself, so there is no need for face control, while others carry out a deep check on future residents. We have to point out a surprising fact: in Baku in total compliance with our mentality, this parameter is widely advertised by market specialists regardless of the class of accommodation. Even if you are going to buy an economy class flat somewhere in Ahmadli, you will definitely be told that the contingent of residents there is selected very carefully. And this is true. At the same time, we've got to hand it to our "special" tolerance - not a single owner of a new building in Baku will ever think of selecting residents on the basis of their nationality. In elite class houses, especially in club houses in the same Moscow, they are trying not to sell flats to people of two categories - people engaged in the criminal world and people of so-called Caucasian nationality.

Another aspect of the business is related to the human factor again - this is the selection of staff at an elite house (guards, concierges, etc.). Everything is taken into account here - from the looks and manners of a person to a certain dressing style. However, we pay less attention than necessary to this.

An issue of interest to many is whether a "Stalin-built" house or a so-called "architectural" house can be regarded as elite housing. As a rule, such buildings have an excellent location and a wonderful contingent of residents. Alas, in order to be regarded as elite housing, a house should be stuffed with state-of-the-art technical equipment, which is done rarely - it is more profitable to build a new building. Moreover, an elite class house should be built on the basis of an original project, which we cannot say for "Stalin-built" houses. We should point out that de luxe and luxe houses should have brick walls both inside and outside (with beautiful facing). The premium class, according to some specialists, allows monolithic external walls and reconstruction. Even a modernized "Stalin-built" house cannot go higher than this class. Incidentally, the class of the house can be downgraded in the course of time due to the toughening of requirements.

Talking about the technical equipment of an elite building, we have to mention central air conditioning, the climate control system, mechanical and chemical water and air filters, several types of heating (air, water and electric heating, radiators should have relays to regulate the temperature), a boiler house, double electricity and modern telecommunication lines that make it possible to choose your own operator, as well as expensive facing material and noiseless lifts made by well-known manufacturers. Houses of various elite class types differ by the quality and brand of the aforesaid, and the availability of all this is compulsory. The engineering infrastructure of an elite house should support the concept "Clever House" - when relevant communication lines and software that provide for the organization of the management of various subsystems are installed while the building is under construction.

As for the infrastructure, its level in elite houses should reach the level accepted in three or four-star hotels. None of its facilities, including those on the ground floor - exercise rooms, saunas, cafes, laundry rooms and so on - can be open to the public: they are designed only for the residents of this house. The existence of a developed infrastructure, when a person can get everything without leaving his house (especially to practice sports), is an important sign that makes premium class houses different from business class houses. Club houses deliberately have no infrastructure - their residents have their own favourite restaurants, hairdressers and others whom they are not going to betray…

In a word, there are many signs of an elite house. Only the main ones are listed here. We would like to believe that an official classification of new buildings will be introduced in our country in the course of time and will be observed by all builders. But for now, gentlemen, try your luck…