Many wealthy buyers are shifting their focus from urban real estate to more spacious and tranquil homes where they can enjoy extended stays in comfort whilst working remotely.
For so many people, Covid-19 has been very emotionally and financially challenging but, at the same time, global wealth also grew during the past two years, resulting in a 10% increase in High-Net-Worth (HNW) individuals worth over $30 million and, along with it, a spike in the demand for luxury real estate.
During times of economic uncertainty, many investors are drawn to the historic stability of residential property and this is especially true of the more resilient luxury market which tends to operate independently of general market trends, offering solid returns well above the current interest rate.
Although there is nothing new about property being the go-to investment in tough economic times, this time around there are a number of notable shifts in buying trends amongst luxury investors which can largely be attributed to the pandemic:
More space, new locations
Work-from-home and home-based learning have become the default for at least a year in most countries, and the appeal of properties like city penthouses has diminished whilst the demand for larger houses with outdoor living space has increased exponentially.
But what is equally significant is that many of these investors are not merely moving out of the city and into the countryside or to nearby coastal areas, they are moving states, counties, and, often, even countries.
Co-primary living
Second – or even third or fourth – homes are common investments among the uber-wealthy who have traditionally used these properties as vacation homes.
However, what we’ve increasingly been seeing since 2020, is the use of secondary homes for longer periods. Since flexible and remote working became the new norm, wealthy homeowners have looked to decamp for several weeks or even months at a time to claw back lost family time or to work remotely in a more agreeable setting.
People are not only wanting to get out of big cities but also back to nature to live in comfort and enjoy a more wholesome and tranquil lifestyle, therefore, they are acquiring properties that fulfil this need.
Sustainability and eco-awareness
One of the few silver linings of the pandemic has been an increased awareness of the importance of sustainable living and this has been evidenced in recent buyer preferences, especially at the top end of the market where money is no object.
Developers world-wide are now rising to the challenge to provide sustainable luxury homes in beautiful locations for the uber-wealthy, whether it be a primary or co-primary residence.