When the world thought that the pandemic will scurry people away from luxury investments, it proved to be quite the opposite for the real estate market. In fact, the global health crisis has created a growing preference among homebuyers for bigger and more sophisticated properties which was highlighted during the many months of lockdowns all over the world.
This unique consumer behavior shifted the focus of real estate investors to meet the emerging trends in the housing market. In the height of COVID-19, an increasing number of potential homebuyers for a luxury property—either as secondary dwelling, vacation home or just as a real estate investment—was observed. Still, the luxury property industry has been badly affected by the economic crisis but at least its post-pandemic future looks good.
As the world worries about the rising inflation and the market’s volatility, the real estate market is believed to be a safe and stable alternative for investors to build their wealth. Financial experts agree that real estate is one of the strongest inflation hedge to counter the constant fluctuation of prices and take advantage of the capital values that appreciate in the long-term.
Luxury property investors can also benefit from the steady cash flow by making a staycation home up for rent, which became more popular because of the strict restrictions during the height of the pandemic. Since most luxury communities boast of extravagant amenities within the neighborhood, luxury properties tend to be a source of passive income that need not intensive maintenance.
Overall, a luxury property can prove to be a worthwhile investment for those who can afford it. Compared to other industries, the luxury housing market is on an upward trend. There are many reasons why luxury properties stands out from others, one of which is its investment opportunities for investors.
There are a number of specific reasons why more people are looking into luxury properties these days, most of them factor in how the pandemic changed the world in its entirety. Experiencing isolation in this day and age gave a lot of people a new perspective and direction for living moving forward.
Here are some of the trends that recently arose in the housing market and are expected to continue after the pandemic.
One of the main concerns that the pandemic posed for the real estate sector is the greater challenge to generate leads and sell properties due to people’s hesitation to do any real estate transactions. The pandemic made people on the fence regarding real estate because of health concerns and fear of making a pricey investment in the midst of the volatile global economy situation.
This problem made way for a number of good solutions in the real estate market. Along with the rise of e-commerce, many industries followed suit and embraced the need for digitization. The integration of the selling process through several digital channels became more popular that nowadays, the online presence of many real estate company are stronger than ever. Homebuyers can arrange for a private schedule to do site visits at the tip of their fingers.
Also, it was observed that many affluent families are looking for properties in rural locations to serve as their second homes in case scenarios such as the long months of lockdown happen again. The anxiety that the pandemic created in people pushed them to look for another residential property that is away from the cramped spaces in the city.
Houses with good exterior space experienced a surge in demand during the pandemic. People became very aware of the significance of having green spaces in their neighborhood. It is not just with the housing market but other sectors such as the fitness industry experienced a pandemic-induced boom as more people started to make an effort related to their health. This is one of the few positive things that the pandemic created in today’s world.
Many real estate developers are just starting to factor in this trend in their upcoming developments. Fortunately for the luxury property sector, amenities and features that promote the residents’ health and well-being has always been in place for luxury themed communities. Parks, courts, and swimming pools are only some of the spaces that promote healthy and active lifestyle to residents.
Making a luxury property investment is no longer as simple as searching for a new property to live in with a priority on areas that are near the metro. In the post-pandemic world, buying a property that is future-proof, a place that will allow for an uninterrupted lifestyle regardless of any external restrictions such as a global pandemic.
Some of the main considerations that homebuyers have on their list are space and privacy. Living in suburban areas are becoming more popular which can be attributed to more flexible employment set-ups that made remote work possible. However, with one gap solved comes another arising from it—the remote work set-up created a need for bigger and better space inside the homes.
Do-it-yourself home improvements became a trend during the pandemic to accommodate the need to create better spaces for work, school, and other specific activities that was previously done outside of the house. A more flexible layout that will provide more space and privacy inside the home is a sought-after necessity in the new normal. Having these features in a luxury property is one of the strong driving forces for investors to purchase as such properties can be easily .
Real estate, in general, has been proven to be as a trustworthy asset class even in the middle of a global crisis. Most of the world’s wealthiest billionaires vouch for real estate investments as a reliable way to build exponential and generational wealth.
Aside from buying and selling, there are also other possible ways to make money off a luxury property. As previously mentioned, many luxury houses, apartments, and condominiums are out in the market as a staycation rental property. This is a guaranteed way to make money especially if the property is in a great location. it can also be used for professional shoots and other business activities that are known to pay well.
The COVID-19 pandemic did not just change the homebuyer’s preferences but also how real estate sellers do the sale. The process has changed drastically due to the developments made to adapt to the new requirements caused by the pandemic and the digital age.
For potential homebuyers, here is a glimpse of the new step-by-step property guide to buying a luxury investment in the post-pandemic world:
Doing a site visit is not as easy as the pre-pandemic times so it is best to narrow the options as much as possible. There are plenty of risks involved in visiting many locations and meeting different people, especially in enclosed spaces.
This is why on top of this property guide is making a comprehensive list of desired features and amenities which will save plenty of time and help avoid the risks.
Many real estate developers have created advanced digital tools that enables potential homebuyers to experience comprehensive virtual tours at the comfort of their own homes. The social distancing requirements pushed sellers to create interactive video tours of the properties and communities. More sophisticated ones use 3D home tour features.
It is only a wise move for future homeowners to do a proper research of the location and the entire vicinity of the area to ensure that it will be a suitable community for the residents. Luxury homes usually come with breathtaking views but it is best to ensure that there are good establishments around the area and accessible from the property.
The target market of luxury properties are the affluent and one would say that there is no limit to the budget which is not true at all. A good investor would know better what is a wise investment and there will be a budget involved. Luxury investors usually consider the current performance and the experts’ outlook on the economy as they make their decision whether to make the investment or not.
At all times, it is best to set a budget and stick to it. Whether a luxury property or just a regular residential one, there are still needed funds to complete the purchase. This property guide should really be on your list.
Before making a pricey investment for a luxury property, it is best to have a trustworthy professional who can oversee the transaction from start to finish and ensure that there will be no issues whatsoever. Hiring a good real estate agent can be one of the best investments for an investor because these professionals can find the best properties, amazing deals, access to huge discounts, and make the tedious process of a real estate smooth.
Usually, real estate agents are in-charge of providing the buyer good pocket listings. In fact, everything that a luxury investor needs can already be answered by this process alone and forego all the previous items in this property guide. A one-of-a-kind real estate professional is the key.
During the pandemic, another challenge for the real estate sector is the housing inventory. There is a scarcity with demand, for sure, but also with the supply. Many sellers decided to hold on to their properties due to the worsening economic forecasts and the extra costs that sanitation requires to lessen the risks of doing physical tours to potential buyers.
This is why competition is currently very steep. Many properties are being sold above the asking price because of this scenario. It is best to be prepared some negotiation skills when buying a property.
Of course, safety concerns will be included in this property guide. Even if the choices are narrowed down, it does not mean that it is only limited to local properties. In a lot of cases, there are great luxury properties abroad that are available for foreign investors.
When the transaction with the seller is already ongoing, the investor must visit the property at some point. Before going, it is best to check the travel advisories for the place or the country where the property is located. Be aware of the COVID-19 situation in the location and make sure to follow the minimum health protocols.
For one’s safety, do due diligence by frequently washing the hands frequently or at least sanitize using alcohol during travel. If possible, avoid crowded areas and limit exposure by planning the trip thoroughly. It is best to be safe, getting sick along the way is not worth it.
Make a luxury investment with one the best real estate developers in the Philippines! Brittany Corporation offers an amazing lineup of luxury homes that are located in prime suburban communities in the country—Crosswinds Tagaytay, Brittany Santa Rosa, Vista Alabang, and The Lakefront Sucat.
Brittany’s luxury homes feature world-class designs surrounded by breathtaking scenic views of nature in the area. These luxury themed communities are also complete with amenities and features that are accessible to the residents within the neighborhood. Convenience meets sophistication in Brittany communities where luxury living can be an everyday experience.
With this property guide, make sure to check out the locations, property prices, and more details about Brittany Corporation’s luxury real estate developments! Go to Brittany’s website or follow their social media pages for the latest updates on their luxury house and lot for sale, luxury condo, and luxury lots offerings!
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