Buyers Seek Historic or Period Homes

John Adams, the second president of the United States and the son of a Puritan, would undoubtedly blush at the makeover planned for his former London residence.

While the developer is maintaining the historical features of Adams's three-story house, including a broad ballroom with high ceilings and an ornate fireplace, he is also adding the latest in high-tech gadgetry. Improvements will include Lutron-brand controlled lighting, electrically operated curtains, underfloor heating and an audio-video system throughout the structure.

"If you're buying a property like this, you're definitely interested in period fixtures," said Ben Carson, the London-based developer who paid 3.5 million pounds, or almost .9 million, earlier this year for the house in Mayfair, in Grosvenor Square, where Adams lived from 1785 to 1788 when he was the first United States minister to the Court of St. James's. "But at the same time, people spending this kind of money also want the sophisticated audio-video system" and other amenities. (It is too soon to say what the sale price will be.)

Around the world, from Panama to Shanghai, buyers are seeking historic or period houses, and are willing to pay high prices for them, spurring owners to spend time and money on sensitive renovations that often include modern improvements, brokers say. But finding properties worthy of such effort can be a challenge.

"The demand for property that is historic or period has never been higher," said Mark Lawson, a partner in the Buying Solution, a London-based agency that represents prospective buyers. Sixty percent of the historic properties handled by his company are bought before they are even formally listed, he said.

In Tuscany, it is "nearly impossible" to find the classic old farmhouse or cottage worthy of restoration, said Marie Josèphe Mucchielli, general director of Kalliste, a real estate company that specializes in renovating older properties in Italy.

Books and movies depicting idyllic Tuscan living set off a buying spree of properties over the last 10 years, depleting the supply and driving up prices, she said. So prospective buyers are looking to less heralded regions, like Sardinia and Umbria. "In Umbria," Ms. Mucchielli said, "you can still find ruins or monuments to be renovated at a reasonable price."

But deals vary, depending on availability. For example, Prestige Property Group currently lists a 1,970-square-foot fully restored stone farmhouse in Tuscany with terra-cotta floors and wood-beam ceilings for 2,400, but a rustic two-story 1,600-square-foot farmhouse in need of restoration in Umbria lists for 9,000.

In Panama, investment is flooding into beachfront projects. But Conservatorio, a real estate developer, is one of several companies focusing instead on renovating buildings in Casco Antiguo, Panama City's old quarter.

"I think there have been so many success stories that a lot of people ‘get it,' " said K. C. Hardin, manager of Conservatorio. "When a market matures, the old apartments are much more valuable than the towers. They are collectible, not a commodity." And in Casco Antiguo, demand for renovated historic property far outstrips supply, Mr. Hardin added.

Victoria Yee, a Florida-based software developer, and David Shore, her partner, paid 0,000 for a one-bedroom apartment in one of Conservatorio's projects, an 80-year-old building that once housed a department store called Benedetti Hermanos.

Ms. Yee says she explored neighborhoods around the world before settling on Casco Antiguo, which reminded her of the French Quarter in New Orleans.

"You find very few places around the world like that that have been somewhat preserved," she said. And at Casco Antiguo, "there are not a lot of units flooding the market in the area, which is a nice thing."

Conservatorio is rebuilding the department store's original glass facade and transforming the interior to create 10 lofts with a pool and indoor parking.

The lofts will range from 185 to 370 square meters, or 2,000 to 4,000 square feet, and have bamboo flooring, high ceilings and modern appliances. The unsold units are priced from 0,000 to 0,000; the penthouse already sold for 5,000 - the high end of the scale for Panama City.