Beachfront Premium

Definition

The exorbitant price premium charged for properties near oceans or lakes, roughly equal to the fantasy value minus the actual utility value. Mostly for Instagram photos.

Example Usage

That modest cottage costs $8M purely because of its beachfront premium.

Origin

Modern real estate marketing jargon from luxury property developers

Fun Fact

Beachfront properties appreciate faster in bull markets but depreciate faster during recessions due to their discretionary nature.

Source: Luxury Real Estate Council

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