What does 2021 have in store for global real estate?
Property is an industry that connects people, and no matter where we are in the world, there are common denominators among professionals in the real estate sector. Following the uncertainty and devastation of 2020, these traits will be even more valuable in 2021.
The much-discussed expansion of the home to office, gym, school, and/or entertainment center is here to stay, making our homes more critical than ever. In addition, as people are less geographically tied to a specific location for their jobs, and as mobility expands, the demand for worldwide real estate has shifted to reflect this trend.
At the top end of the market, we have seen wealthy consumers making health-driven lifestyle choices amid the COVID-19 pandemic. This wellness mindset will continue to shape the luxury real estate market and fuel its growth year. Demand for secluded and exclusive residential properties with plenty of space away from city centers will continue well into 2021, even as the vaccine for the coronavirus becomes available worldwide.
For professionals, coming back to the city might be difficult after you’ve been living in what was your second home for the better part of a year. If you can continue to work from home in some flexible way, that second home may become a permanent primary residence for many of those who did leave the city. This new Coronavirus-related trend for the affluent market, swapping their primary residences for second homes, or making them co-primary, is likely to continue for another year or two, at least until the pandemic subsides in the West and other parts of the world (and perhaps even after).
Like bedroom communities, second-home markets will continue to see an increasing number of clients ready to buy, even in the off-season. Because working from home and remote learning has allowed buyers the flexibility to enjoy the perks of a resort-style lifestyle on an ongoing basis, not just for vacations.
Once COVID-19 starts to recede, people will eventually miss the cultural and social life in hubs such as London and New York, especially as theatres, restaurants and museums open their doors again. The cultural draws of city life will no doubt be as magnetic as they once were, if not even more so.
High-end real estate consumers will continue to realign their priorities to spend more on the property which gives them and their families a sense of security, health, safety, and privacy reflecting the renewed focus on wellbeing. For the wealthy, work, school, socializing and entertainment will all have a common home through much of 2021.
