2023 Set For Influx of Luxury Real Estate

real estate

| LAST UPDATE 08/22/2022

By Rose Fairchild
luxury property pandemic economy
Justin Sullivan / Staff via Getty Images

Since the pandemic, there has been an increase in "concentrations of HNIs in the world, fueling demand for high-end properties." HNIs, which are high net-worth individuals, is the reason for the incoming "rebound" of high-end properties and luxury housing. In addition to post-pandemic market shifts, we can expect an expanded range of luxury real estate offers worldwide...

Since the pandemic, there has been a growing and obvious WFH (work from home) trend. As a result, buyers and property investors are now more interested in looking for the WFH value a home can offer. Citizens don't want to settle, whether it is a holiday home, luxury apartment, or detached house in a rural or suburban area. When working from home, this should be a core luxury and valuable aspect of the property. Specifically, there has been a "rise in demand for gated/compounded houses, villas, retirement & second homes, etc." The spacious living sector is increasingly becoming more attractive by the minute, as big spenders are willing to pay for larger living spaces at the cost of their homebound situations. Essentially, the spacious face value can be used for alternative at-home activities, such as business meetings. In reality, homes are becoming more adaptable to different environments, adding luxury value.

luxury property market 2022
Dimensions via Getty Images
Advertisement

Moreover, residents have taken a liking to "gated societies with globally benchmark amenities." Living in high-end apartment buildings can offer valet parking and rooftop facilities. In contrast, spacious communities can provide gaming zones, golf courses, surrounding nature, and "water bodies" for all-around family activities. The outlook on the high demand for luxury properties can reflect changes in work and living preferences. The priority for spending time with family and friends has vastly shifted since the pandemic, not to mention the spike in retirement and second home culture. Offering a "great escape in case of a future outbreak of the pandemic" has affected the world more than expected. It has become a part of our culture to be prepared, so a second home is becoming more agreeable. Predominantly, the Indian "ex-pat community" plays a significant role in high-end real estate and bets on European, Singapore, Thailand, and Maldives markets. Considering India is the largest fund for HNI's, Indian buyers are more interested in high-end apartments, villas, and even bungalows.

Post-pandemic, as the capital returns to a stable state, the demand will continuously grow. While there will be a rising supply of luxury housing and second home options, we can expect a rebound of luxury estates by the year 2023. We are seeing a pivotal shift in the market, resulting in dominant buyers competing for the most valuable and luxurious options.

Advertisement