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Sotheby’s International Realty has just released its 2022 Luxury Outlook report, which identifies future trends that may shape high-end real estate markets around the world.
The Luxury Outlook report was compiled by surveying Sotheby’s International Realty agents worldwide who transact in the $10 million and above price category. This information was supplemented with data from other industry experts, including UBS Wealth Management, Henley & Partners, a citizenship and residency consulting firm, the National Association of Realtors, and art and luxury experts from Sotheby’s, the renowned auction house, to identify luxury trends for the coming year.
New buying habits
The global report reveals that the calm after the market frenzy may not come quickly, as prices are expected to rise in 2022. In addition, the shift to a hybrid work model is causing more buyers to invest in real estate and look for larger homes that can accommodate remote work while remaining within proper commuting distance of their physical offices.
“Once again, Sotheby’s International Realty remains a trusted resource for buyers and sellers looking to navigate the luxury real estate market,” says Bradley Nelson, marketing director for Sotheby’s International Realty, “It was important for us to offer our perspective on upcoming trends as luxury real estate remains a trusted investment in an environment of relatively low interest rates and inflation.”
According to the report, 2022 is likely to be the year of the international buyer, with open borders and the rollout of vaccines and recalls, and nearly half of those surveyed agree that rising interest rates could affect the market.
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Philip A. White Jr, chairman and CEO of Sotheby’s International Realty gives his thoughts, “This will probably be the year of the international buyer. New investors have slowed, but with the opening of borders and the rollout of vaccines, I expect that to increase. We are also still looking at emerging luxury areas. We recently opened offices in Bulgaria, Jamaica and Morocco, and before that, in areas like Seoul, Antigua, Paraguay and Romania. (…) Notable examples are the burgeoning business centers that also offer sunny destinations, Austin and Nashville. Overall, beyond the international markets, I suspect that residential transactions will level off a bit as we saw a surge of activity in the second half of 2020 and the first half of 2021.”
New generations
Millennials are entering the home buying market in droves, shedding their “renter generation” title as they reach new milestones in their lives, with as many as 4.8 million millennials turning 30 in 2021. And they are increasingly relying on wealth transfers, according to real estate agents.
“Most millennials are using a wealth transfer from their parents, grandparents or a relative to buy a property. And even when parents buy, their children are often the ones making the decisions because it will be theirs someday,” says Jonathan Spears, agent, Scenic Sotheby’s International Realty, based in Florida. Nearly $70 trillion will be passed down from older generations between 2018 and 2042, according to data from market research firm Cerulli Associates, and more and more millennials continue to use their share for real estate.
The number of young adults ages 25 to 34 buying a home with a co-borrower age 55 and older has increased since 1994, according to a study of Freddie Mac’s purchase loan portfolio. While in 1994, 1.3 percent of young adult first-time homebuyers listed adults over 55 as co-borrowers, that number rose to 3.2 percent in 2018.
Generation Z, whose oldest members are in their 20s, also have their sights set on homeownership. In fact, 27 percent of the oldest members of Generation Z (ages 18 to 24) plan to buy a home in the next two years, compared to 36 percent of millennials (ages 25 to 43), according to the most recent data from the Center for Generational Kinetics (a global Generation Z research firm). What’s more, according to the same data, 71 percent of Gen Zers (ages 13 to 25) in 2021 believe they will own a home in the future.
“They want to own their own home, and they’re predisposed to save,” says Jason Dorsey, generational expert and president of the Center for Generational Kinetics. “Before Covid, they were very optimistic about the path to buying a home. They still want to own homes; it’s their version of financial stability or financial success.”
Read also > SOTHEBY’S INTERNATIONAL REALTY OPENS OFFICES IN BULGARIA
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Sotheby’s International Realty has just released its 2022 Luxury Outlook report, which identifies future trends that may shape high-end real estate markets around the world.
The Luxury Outlook report was compiled by surveying Sotheby’s International Realty agents worldwide who transact in the $10 million and above price category. This information was supplemented with data from other industry experts, including UBS Wealth Management, Henley & Partners, a citizenship and residency consulting firm, the National Association of Realtors, and art and luxury experts from Sotheby’s, the renowned auction house, to identify luxury trends for the coming year.
New buying habits
The global report reveals that the calm after the market frenzy may not come quickly, as prices are expected to rise in 2022.
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Sotheby’s International Realty has just released its 2022 Luxury Outlook report, which identifies future trends that may shape high-end real estate markets around the world.
The Luxury Outlook report was compiled by surveying Sotheby’s International Realty agents worldwide who transact in the $10 million and above price category. This information was supplemented with data from other industry experts, including UBS Wealth Management, Henley & Partners, a citizenship and residency consulting firm, the National Association of Realtors, and art and luxury experts from Sotheby’s, the renowned auction house, to identify luxury trends for the coming year.
New buying habits
The global report reveals that the calm after the market frenzy may not come quickly, as prices are expected to rise in 2022.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
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