The pandemic has transformed the global property market. Industry leaders offer their predictions for the $10 trillion sector in 2022.
Lockdown, work-from-home, staycation: These are some pandemic-era words we have all had to get used to. A new definition of the way we live, work and travel, has changed the real estate sector’s dynamics- one of the world’s most significant drivers of economic growth.
Despite the global situation, investments in real estate reached an all-time high in the third quarter, topping $755 billion, (670 euros), up 50 percent year-on-year.
And investors are keeping their portfolios diversified, with the residential sector now the most active segment ahead of offices, and driving 29 percent of transactional activity.
The post-COVID home
Behind the statistics and commercial figures the property market has always been profoundly affected by how people think and feel about design. Due to less socializing, people stay more at home, trying to create comfortable, comforting and domestic environments. Tastes are changing with the pandemic forcing us to rethink our relationship with our homes.
Let’s take the example of Paris, one of the world’s most flourishing for decades. During the COVID crisis, some feared for the real-estate market in Paris, but prices are up again and prestige property is even booming: Both Sotherby’s and Barnes say 2021 will be a record year in France.
People are looking for apartments with space and gardens, because they have suffered during the confinement. Big apartments without outdoors, prices went down or stabilized, and the others with outdoors, prices went up.
More people want to realize their property dreams and put their plans into action. People during COVID had the time to think about their future project and now is the time to make this project happen.
Property remains one of the soundest investments: Investors and wealthy families want to invest, and they want to invest in a safe investment so what’s better than real estate?”
So the pandemic has changed consumer trends, and how realtors are coping with the movement of people in big cities, but what’s the sentiment like for investors looking for bright spots to cash in on?
2022 could offer many opportunities with sustainability and technology driving both design and innovation.
So, Investors, designers and deal makers all agree that the property market appears to be weathering the COVID storm. But the pandemic, like climate change, has only just begun to reshape the sector and our society as a whole. To win in 2022, property firms will need to adapt to a very different way of thinking about the spaces where we live and work.