By Why are real estate agents in Europe going global this year? Is there something investors can learn from what’s going on in the property market?
The worldwide property market has been changed as a result of the epidemic. Industry professionals provide their projections for the $10 trillion sectors in 2022 in this edition of the Exchange.
We’ve all had to get used to terms like lockdown, work-from-home, and staycation during pandemics. They’ve transformed the way we live, work, and travel, as well as the dynamics of the real estate industry, which is one of the world’s most important drivers of economic growth.
Many aspects of real estate are recovering as a result of the global pandemic recovery. However, uncertainty remains a major issue, as new COVID variations and escalating instances threaten to reintroduce movement limitations.
Despite the uneven recovery, real estate investments surpassed $755 billion (670 euros) in the third quarter, a 50 percent increase.
And investors are diversifying their portfolios, with the residential sector now leading the way ahead of offices, accounting for 29% of all transactional activity.
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The Post-COVID Residence
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Behind the statistics and business figures, how individuals think and feel about design has always had a significant impact on the real estate industry.
Laurence Llewelyn-Bowen, an interior designer, has spent decades bridging the gap between design, architecture, and culture. He claims that as a result of the pandemic, our tastes are changing, prompting us to reconsider our relationship with our homes.
“…architecture is a very ponderous art form that will take decades – an architect who has a concept now is unlikely to see the results of that idea for another five, six years.”
People believe that there are extremely soothing and personal ways to decorate now and that they are suddenly decorating for themselves, rather than for the estate agent who will come by and appraise it or the work colleague who will come around for a bottle of wine. Actually, people are staying at the office less, and they are staying at home in these very pleasant, reassuring, really domestic situations,” Llewelyn-Bowen explains.
Property Prices in Paris Are Skyrocketing
During the COVID crisis, some worried that the real estate market in Paris, which had been one of the most thriving in the world for decades, might suffer. However, prices are rising again, and prestige real estate is booming.
According to Sotherby’s and Barnes, France will have a record year in 2022. Although this is a bullish forecast, does it reflect the sentiment of buyers and sellers on the ground?
“People are seeking for apartments with space, with gardens, because they have suffered during the imprisonment,” Olivier Kretz, the founder of Kretz and Partners, told the Exchange. Prices of large apartments without outside [space] have decreased or stabilized, while prices of smaller apartments with outdoor space have increased.
Valentin Kretz also believes that an increasing number of people desire to realize their real estate ambitions and put their plans into action.
“I believe it is a worldwide phenomenon. People had time to ponder about their future idea during COVID, and now is the time to make it happen.
He ends by stating that real estate is still one of the safest investments. “Investors and wealthy families are looking for a safe place to put their money right now, and what better place to put their money than real estate?
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The Real Estate Global Change is Guaranteed
So the pandemic has affected consumer patterns and how realtors deal with the influx of people in big cities, but how do investors feel about finding bright spots to invest in?
Sean Coghlan is the Global Director of Capital Markets Research at JLL, a New York-based real estate investment business. With sustainability and technology driving both design and innovation, he feels 2022 will provide numerous chances.
“We’ve entered a new era of living, working, and playing, and we’re still in the midst of experimentation, with much yet to be determined, which presents opportunities. Sustainability is evolving from a nice to have to a must-have. From an investor’s standpoint, technology, where groups have a lot of belief, might fit into a lot of different sections of the market. However, I believe this real estate global trend will continue in the coming year, with groups focusing on market potential.”
