The pandemic has transformed the global real estate market. Business leaders in the real estate industry offer their predictions for 2022, regarding a sector valued at nearly €9 trillion.
Taken from Euronews
Lockdowns, working from home, staying home during vacations… these are all aspects of the pandemic era that we've all had to adapt to. They've shaped how we live, work, and travel, and have changed the dynamics of the real estate sector, one of the biggest drivers of global economic growth.
The resurgence of the pandemic globally is driving recovery in many segments of the real estate sector. However, uncertainty remains a significant issue, as rising infections and new variants of the coronavirus carry the threat of renewed movement restrictions.
Despite the uneven economic recovery, investments in the real estate sector reached a record high in the third quarter, exceeding 670 billion euros, representing a 50% year-on-year increase.
And investors are keeping their portfolios diversified, with the residential sector being the most active segment, ahead of offices, and driving 29% of transactional activity.
The post-coronavirus home
Behind the statistics and business figures, the real estate market has always been profoundly affected by the way people think about and conceive of design.
“Now, people socialize less, spend more time at home, and stay in environments that feel comfortable, comforting, and domestic,” says interior designer Laurence Llewelyn-Bowen
Llewelyn-Bowen has spent decades working at the intersection of design, architecture, and culture. She asserts that tastes are changing and that the pandemic is forcing us to rethink our relationship with our homes.
“Architecture is a very demanding art form, and it unfolds over time. An architect who has an idea now probably won’t see the fruits of that idea for another five or six years. People feel there are very comforting and personal ways to decorate right now. Suddenly, people are decorating their homes for themselves, rather than for the real estate agent who’s coming to appraise their houses, or for the coworker who’s going to share a bottle of wine with them. In fact, people are socializing less now, spending more time at home, and staying in environments that feel comfortable, comforting, and domestic,” explains Laurence Llewelyn-Bowen.
Property prices in Paris are skyrocketing
During the height of the COVID-19 crisis, some people feared for the Paris real estate market, which has been one of the most prosperous in the world for decades. But prices have rebounded, and prestigious properties are even booming. Both Sotheby's and Barnes predict that 2021 will have been a record year in France. A positive prediction, but does it align with the sentiment of buyers and sellers on the ground?
“For us, 2021 has been one of our best years. I think the coronavirus caused this to happen. In 2021, for example, market operations increased by more than 50%, compared to 2020. So, it really has been a great year for us,” says Valentin Kretz, a stockbroker at Kretz & Partners.
You may have come across the Kretz family on television during lockdown. The TV series 'Family Business: Luxury Homes', which they star in, tells their true story: that of a family business specializing in luxury real estate.
