After 1.5 years of Covid-19, the global real estate market appeared new trends in all aspects from price, segment to customer taste.
According to recent research and survey by Knight Frank and Reuters, Covid-19 is impacting the design and price of residential real estate globally, while changing customer tastes and highlighting new models. new product.
Change in design
According to the Global Development study conducted by Knight Frank, which 160 project developers in 22 countries, 60% have delayed their projects amid the pandemic, due to broken supply chains and requires a holistic rethinking of the customer's housing needs. Of the delayed projects, more than 40% are changing designs that were previously completed.
Knight Frank's survey has confirmed that real estate developers are looking forward to consider some of the changes due to the impact of this pandemic. Specifically, 75% of project developers will consider applying an advanced telecommunications system and designing a home workspace for residents to have flexible working facilities right in the living space.
Personal office space at The Ritz-Carlton Residences project, Miami Beach
The attraction of the urban area is also strengthening. While 41% of the units said that they would aim to develop projects in multiple mixed areas (urban, rural, resort), 45% said that they would only focus on cities.
The growth of mixed-use projects is also evident when a third of project developers are adjusting the proportions of residential and commercial components in their projects.
The application of technology in sales activities is also a trend. Nearly two-thirds of the units predicts that their business activities on will be towards a virtual reality technology platform.
“It is clear that this pandemic has accelerated the impact of existing trends and fostered new ideas for current and future projects,” said Flora Harley, research specialist at Knight Frank shared.
Global real estate prices soar
According to a survey of more than 100 real estate professionals from May 11-24 by Reuters, house prices in the US, UK, Canada, Australia and Dubai are forecast to increase compared to the previous three months at a rate far exceeding the growth rate . expected GDP growth and consumer price inflation.
The median home sale price in some countries has risen to astonishing levels in early 2021. Experts say consumer confidence has increased dramatically thanks to the success of vaccine programs and customer surveys also show saw an increase in demand for moving house due to the pandemic. Besides, the limited supply of residential real estate is also a basis for believing that house prices will increase in the short term.
This trend is expected to continue thanks to low lending rates, rapid vaccine rollout and easing of restrictions following the severe recession caused by the pandemic last year. India is one of the countries that is forecast to stay out of the global real estate price trend. Home prices in this country are expected to stagnate this year because of the great impact of the second wave of Covid-19.
Successfully implemented vaccine programs are one of the factors that will help increase global house prices in the future.
The rise of luxury real estate
Customers in the context of Covid-19 are focusing on basic values, focusing on the comfort elements of living space such as the location, quality and comfort of a prestigious luxury brand, according to the report. opinions of experts.
Mr. Paul White – Senior Vice President of Development, Marketing and Sales of Residential Projects of Four Seasons Hotels and Resorts said that in the context of confusion and uncertainty, customers tend to look to the brands they love. know, trust, and can count on.
“This year, we have seen many customers in the luxury real estate segment focus on quality. They want a living environment with diverse services, a space where they feel protected. and care,” said Paul White.
The attraction of well-known brands has helped a number of high-end real estate projects do well. According to Knight Frank Global Development Research, luxury real estate has grown rapidly over the past 20 years, and the global pandemic has highlighted some of the advantages of projects under this model. From apartment management and care services when the owner is away to strict maintenance management procedures provided by leading resort brands themselves.
Dana Jacobsohn – Senior Vice President of Complex Project Development, Marriott International shared with Mansion Global that the group's luxury real estate division is showing more resilience than any other segment. Buyers also know brands are professionally curated, and that makes it easier for customers to make decisions with confidence.
“Customers, more than ever, are realizing the superiority of Marriott's brand. We're also seeing strong sales. And homebuyers are getting used to the virtual reality tour as well. They themselves know that our projects will possess outstanding high quality, especially those associated with brands such as St. Regis and the Ritz-Carlton”, approving Ms. Dana Jacobsohn.
Marriott real estate projects are professionally managed, creating trust for customers. Photo: Sunny Isles Property Venture LLC.
According to estimates by Savills, in 2020 there will be more than 100 luxury real estate projects open and put into operation. Currently, Asia-Pacific is the region with the largest number of branded real estate projects taking shape with notable markets such as Malaysia and Vietnam. In early 2021, the Vietnamese market received information about the Grand Marina, Saigon project – the first luxury real estate project of Marriott International in Vietnam and the world's largest project of the brand. This brand, developed by Masterise Homes.
The project has attracted a lot of attention from domestic and international customers, and has had two successful sales launch in Vietnam and Hong Kong. This is a testament to the rise of luxury real estate in the context of Covid-19.
“The ongoing lifestyle revolution will bring many opportunities for luxury real estate, especially when the project can demonstrate correlation value, top product quality and a living environment. safe for customers,” said Mr. Alexander Lewis, specialist in Residential Project Development at Knight Frank.