The new normal in luxury real estate
Household value has undergone a major shift over the past year. Customers now value the time they spend with family and friends in their new homes more than their basic needs. These needs have also evolved, and are arguably more intangible, such as family, health, space and security.
Thanks to The Report, Coldwell Banker Global Luxury's annual guide to the latest trends and data provided by leading influencers from The Institute for Luxury Home Marketing, WealthEngine, Wealth-X, Unique Homes and real estate specialists in the sector, we have this insight into the market trends for 2021 which we will discuss below.
Another trend that has arisen due to the pandemic is the priorities of clients about their dream home, the motto "less is more" has been pushed aside and replaced by infinity pools, large and spacious gardens, fitness rooms and indoor spas. Right now in the real estate market, properties such as mansions or detached houses that used to take years to sell are the most sought after.
The joy of sharing a pleasant space in good company has become a necessity in a very short time, accompanied by being able to live in a desired place without having to commute to work.
On the other hand, it is worth mentioning the 3 types of clients that have emerged over the last year:
- Explorers: these are the type of people who leave the big cities to look for hidden locations, with good schools and access to natural open spaces. They are characterised by being young (under 39), married with 1 child at an early age, owning a business, with a lot of flexible hours and the likelihood of a home office.
- New Suburbanite: they are responsible for the resurgence of the suburbs. They are looking for more space, good schools and more peace and quiet. They are characterised by being middle-aged (between 39 and 54), married with two or more children, entrepreneur and/or senior manager.
- Resorter: people who have decided to move temporarily to their second home or people who have moved permanently. They are characterised by being of an older age (over 54), married with grown children, business owners or close to retirement.
This new normality and the emergence of new clients makes one reflect on the great impact of the pandemic on all sectors, although some positive aspects have also been noted, such as the lowering of long-term interest rates, which had previously been detrimental to many countries in Europe. Another positive that was triggered by the pandemic was the further reduction in borrowing costs, which boosted the already strong demand for high-end real estate and also multiplied its prices despite the situation.
In conclusion, this new era or normality has brought many negative consequences, but there are some areas that have benefited the sector. The main mission is to know and understand the new ways of working and to be responsive, adapting to them in order to focus and optimise the work.
Julia Oliveras |
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