5 Luxury Real Estate Trends To Watch Out in 2021 For Your Next Investment
Here are your options for investing in a luxury condo, luxury house and lot, or luxury apartment for sale.
If there’s one positive impact the pandemic has on the real estate industry on both the national and global level, it is this: we are now forced to redefine our requirements in investing in a real estate property. With luxury real estate, opulence is just one factor. While an aesthetic upgrade is one requirement, the need to have the right kind of living space that can support our existing lifestyles, and more. The pandemic and the health policies have changed the way we live, work, and play, and because of this insistence, affluent buyers are no longer just looking at how stylish and elegant the properties are, or if they are located in an affluent neighborhood.
Here are the top trends you should expect in the luxury real estate market in 2021, and how you can up your game to land on a luxury real estate gem yourself.
Consideration over various luxury options
According to recent market data, real estate leads for properties across all price ranges increased in the second half of 2020, signifying a stronger conversion from views on listings and a more aggressive demand from property seekers. While low-cost housing (which is around the P1.5-P3 million price range) was the most attractive price point to potential buyers, it was observed that properties priced between P9 and P12 million experienced the highest growth in both page views and leads.
On the other hand, there was growth in pageviews for properties priced between P12 and P20 million as compared to the growth of leads, which may indicate that homebuyers are adopting a “wait-and-see” approach for property listings within that range. Property leads within the P12 to P20 million price range saw a slightly lower share of leads in early 2021 as compared to its performance for the entire year of 2020, while properties in the P6 to P9 million range increased its lead share this January. This may indicate that property buyers within the upscale price segments may be adjusting their real estate investment budgets or considering other properties with lower price segments.
Suburban space over city culture
Caption: The city is still hip, but a luxury property that offers more than just a breath of fresh air has never been more important than today.
The second-home market will have more luxury buyers seeking the countryside rather than luxury city condos or apartments for sale. According to one industry expert, the increased demand for “holiday homes” outside Metro Manila has increased due to COVID-19.
As countries tighten travel requirements and with governments continuously enforcing social distancing policies and vaccination programs, travel for leisure (and peace of mind) are pretty much relegated to the nearby provinces.
Also, more people are now deciding to live outside the city, largely thanks to the latter’s vulnerability to outbreaks. Luxury buyers are looking for ways to avoid sharing elevators or other common spaces and being cooped up indoors all day, as well as finding enough spaces to allow them to work comfortably from home.
Moreover, working from home and online learning allowed luxury buyers to consider moving to the countryside for large periods of time. And with the latest technological advancements in some countryside locations like better Internet service provider coverage (ex. from 3G to 5G), luxury buyers will no longer worry about managing their work or business in their suburban homes.
But will they resell their city abodes? Highly unlikely. Despite these uncertain times, their luxury real estate investments will still be highly valuable. Aside from its centralized location, luxury condos, apartments, and even house and lots in the city are already comfortable spaces for them to live in, and may also be considered their halfway homes while they live in their new homes in the province. They can also convert their luxury properties in the city as home-office spaces.
Quality, risk-free amenities
Caption: Resort-style amenities are still in, but there’s a greater demand for more ventilated common spaces, top-of-the-line air filtration systems, and cleaning regimens.
As people are becoming more sensitive to what they touch outside their homes, so is the demand for seeking real estate properties that have amenities, facilities, and systems in place to ensure that every resident feels safe from health risks.
Amenity spaces, which are popular pre-pandemic, have luxury buyers focus on luxury properties that feature larger outdoor areas such as parks, gardens, swimming pools, and other open spaces that focus on health programming. On-site spas and gyms are also sought after, not only because of their wellness benefits but also because it affords residents to not make the unnecessary trips to third-party facilities outside their home.
Comprehensive sanitation servicing, high-tech air filtration, and lighting may be nice-to-haves in residential developments, but luxury buyers are now considering them as standard expectations for luxury residential buildings.
Luxury buyers are also on the lookout for affluent properties that are located in a residential development or nearby commercial developments that have onsite healthcare facilities like hospitals or clinics, pharmacies, and supermarkets with abundant greens and fruits sections. While there may be a few of these property types in the city, the abundance of land in the countryside allowed luxury real estate developers to masterplan estates or enclaves that offer all of these on-demand requirements.
Also, these value-adding amenities in luxury residential developments are greatly coveted if they are complemented with features such as contactless elevator buttons, automatic doors, and other precautions that minimize contact.
More lifestyle spaces
As people adjust and live differently in the “new normal”, the need for a bigger place with rooms that they can use as a home office, homeroom, and even an entertainment place is in demand. This is because as more people spend time inside their homes due to social distancing, people quickly realize the importance of comfort and functionality in their living spaces.
Working professionals now are more inclined to invest in a residential property that offers a “house and lot” lifestyle. How many times do we hear stories about children accidentally walking into their parents’ Zoom calls or calling their parents’ coworkers? How many times do we hear coworkers lament about having dogs or roosters or the sound of vehicles interrupting them while on a business meeting or online presentation? While they are cute and funny stories to tell folks over and over, they can be annoying if these instances happen continuously. Interior designers and workplace strategists suggest properties with a ‘formal’ area for extended periods of work, conferences, and meetings are ideal for people who will be working from home for the longest time.
Moreover, “laptops at the dining table or in the living room” may no longer be an ideal work-from-home setup if you are longing to have a work-life balance at home. Investing in a luxury property with personal amenities such as a gym for working out or watching in-house movies is becoming more ideal now. Luxury properties that offer people the ability to actually unwind at home after a day full of work without any distractions, whether they are welcomed or now, are much more favorable.
Safety and security
Caption: Gated residential communities offer safety and security
The demand for luxury homes and residential properties is expected to continue despite the COVID-19 pandemic. While the pandemic has changed the way people live and work, luxury homes and residential properties are still in need, more so now that the need of having a safe home is amplified.
In 2021, industry observers note that the need for security-related features in a home outweighed a stable wireless internet connection, or extensive internet service provider coverage. Developers are more encouraged to have basic security features such as attentive 24-hour security staff, as well as CCTVs in less exposed areas such as parking lots. Digital security solutions such as app-controlled amenities and visitor screening systems in place are now a welcome addition to the majority of luxury buyers.
With digitally-savvy Generation Z entering the real estate market as potential buyers, smart homes with built-in high-speed connections and home automation features are becoming quite attractive too. While it is cool to be able to manage your home, and even your home appliances from your smartphone, having a smart digital infrastructure at home offers peace of mind, especially to luxury buyers who own multiple abodes. Moreover, they do not need to hire extra help to physically stay at home in their properties and manage household affairs, as certain repetitive tasks can now be achieved at the tip of their fingertips.
Despite the effects of the pandemic on almost everything, including how we live, the data suggests that the luxury real estate market continues to flourish, and is set to continue growing throughout 2021, and the years forward. As more luxury buyers seek to upgrade their current lifestyles with more living spaces, greater outdoor living, quality amenities, lower population density, overall home safety, and security, there will be a demand for luxury lifestyles offered by luxury properties.