The luxury property market has seen its share of ups and downs over the last few years, with the global economy affecting real estate valuations worldwide. However, experts are predicting a positive outlook for the market in 2021.
One of the biggest drivers of the luxury property market is the rise of the global high net worth individual (HNWI) population. These individuals, who have a net worth of at least $1 million, have been growing in number and are seeking high-end properties to invest in. With the recent boom in technology startups and entrepreneurship, HNWIs are able to accumulate wealth at astounding rates, which is driving the growth of the luxury property market.
Another significant trend in the luxury property market is the growing demand for eco-friendly and sustainable homes. This trend is particularly evident among younger high net worth individuals who are becoming increasingly aware of the environmental impact of their purchasing decisions. In addition to energy-efficient features, sustainable homes may also include renewable energy sources like geothermal heating and green roofs.
Meanwhile, the pandemic has also had an impact on the luxury property market. Due to the increased number of people working from home, demand for larger homes with home offices, gyms, and outdoor spaces has surged. Many affluent buyers are now looking for properties that provide more space and privacy.
Despite the ongoing pandemic, the luxury property market has shown surprising resilience. Luxury properties have been selling at record prices, driven by the influx of wealthy individuals fleeing larger cities for less crowded suburban areas.
Looking towards the future, the luxury property market is anticipated to continue to see growth in 2021 as HNWIs continue to accumulate wealth and seek properties that offer luxury amenities, privacy, and sustainability. However, with interest rates remaining low and the economic climate uncertain, some experts predict a resurgence of the luxury rentals market, as affluent buyers take a more cautious approach and choose to rent rather than own.
In conclusion, the luxury property market has gone through a period of changes due to the global economic climate and the pandemic. However, demand for high-end properties is expected to remain strong, driven by the rise of the HNWI population, increased interest in eco-friendly and sustainable homes, and the need for more space and privacy. With these trends in mind, the luxury property market is poised for a bright future.