Rather than booking a 5-star Hotel for the upcoming holiday season, people may prefer to stay at a private home with their closest friends to avoid public interactions as much as possible – whilst keeping the luxury holiday flair alive. This presents an opportunity for the luxury real estate markets: As Demand for renting luxury homes and the need for more space in homes increases, the real estate market benefits. A trend to watch out for in the next years.
Several developments in recent times due to the global pandemic are responsible for the shift in Demand for owning luxury properties. In March 2020 when lockdowns in most countries all over the world were introduced, people’s secondary homes became their permanent residence. Especially in New York this effect was observed in a striking manner – masses of workers left their overpriced, small apartments to move outside the city where they can enjoy their spacious homes. This trend continues as homeowners get used to the lifestyle outside the city, being flexible to work from wherever. Rather than renting a 4-figure apartment in the city, especially young couples search for opportunities to invest into homes in the long term. Luxury portfolio manager Mickey Alam Khan confirms this trend in an interview with Forbes magazine. He outlines the 2021 trends in the luxury real estate market: “Coming back to the city will be difficult after you’ve been living in what was your second home. If you can continue to work from home in some flexible way, I see that second home becoming the permanent primary residence for those who did leave the city”.
Regarding health driven lifestyle choices, the question of where to spend the next holiday season has shifted people’s view. Renting or owning a secondary home at a beach, mountain or rural area will accelerate the luxury real estate market for 2021 once more. Luxury vacation homes offer a variety of services that conveys a luxury holiday feeling to the renter. Full services can include chefs, concierge, daily cleaning services and more.
One of the emerging start-up’s for homes is “Forbes Global Properties” that connects buyers directly with high class real estate agents and luxury homeowners who are looking for selling their property. 140 million monthly global visitors show the rapid development of the market and represent a promising future for the luxury home market. Forbes Global properties facilitates the buying process and the search for the perfect home by staying exclusive at the same time – Invitation-only clients are able to use the platform.
In many ways the luxury real estate market is taking an upwards trend and will be interesting to keep an eye on in the future.
By Antonia Kuffler