{"id":42204,"date":"2021-12-01T12:48:51","date_gmt":"2021-12-01T12:48:51","guid":{"rendered":"https:\/\/pr.asianetpakistan.com\/?p=83371"},"modified":"2021-12-01T12:48:51","modified_gmt":"2021-12-01T12:48:51","slug":"luxury-portfolio-international-releases-state-of-luxury-real-estate-report-2022","status":"publish","type":"post","link":"https:\/\/southafricatribune.com\/luxury-portfolio-international-releases-state-of-luxury-real-estate-report-2022\/","title":{"rendered":"Luxury Portfolio International Releases State of Luxury Real Estate Report 2022"},"content":{"rendered":"
SOLRE 2022 – State of Luxury Real Estate<\/h5>\n
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SOLRE 2022 – State of Luxury Real Estate Report – Luxury Portfolio International<\/p>\n<\/div>\n<\/div>\n

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Number of Luxury Real Estate Sellers Increases Globally; Some Buyers Expressing FOMO (Strong Fear of Missing Out); Sustainability \u2018Critically Important\u2019 Among Affluent Buyers Worldwide<\/em><\/p>\n

Latest Report Comprises Data from Top 1-5% Bracket Surveyed Across 20 Countries,\u00a0<\/em>Representing an Affluent Population of Almost 32 Million Households<\/em><\/p>\n

NEW YORK, Dec. 01, 2021 (GLOBE NEWSWIRE) —\u00a0Luxury Portfolio International\u00ae\u00a0<\/a>(LPI), the world\u2019s premier network of luxury residential real estate brokerages, is pleased to share the results of its\u00a02022 State of Luxury Real Estate Report<\/a>\u00a0(SOLRE). The study comprises data from individuals in the top 1% to 5% income bracket across 20 countries, and touches on a broad range of topics crucial to the global luxury residential real estate market.<\/p>\n

Most notably, the LPI report reveals a continuation of dominating home purchasing-related trends that began during Q3 2020 and continued throughout all of 2021, showing that demand for luxury real estate remains high; price increases expected to continue; supply remains lower than demand; time-on-the-market for luxury single-family homes often continues to \u201clast just hours\u201d; and sustainability is \u2018Critically Important\u2019 (66 percent) when considering future home purchases.<\/p>\n

The study also shows an increase in the number of affluent sellers of residential real estate worldwide; that among luxury homes buyers, the majority (74 percent) shared strong feelings of a personal economic confidence and still 75 percent are significantly concerned that their discretionary spending power could be tested soon.<\/p>\n

And while 2022 is expected to continue at a fast pace, there are signs that the luxury residential real estate market will be increasingly stabilizing, a crucial step to avoid complications for a long-term, super-heated market.<\/p>\n

With 75 percent of luxury home buyers choosing their next home with environmental sustainability headlining a broad range of findings from a study of the world\u2019s affluent households by\u00a0Luxury Portfolio International<\/a>\u00ae<\/sup><\/a>\u00a0(LPI), 2021 ends as one of the most robust luxury residential real estate markets in history.<\/p>\n

\u201cAfter a record-breaking year in luxury real estate, we anticipate that some balance will be restored to the market,\u201d said Mickey Alam Khan, President of LPI. \u201cIt is important to view the luxury market over a trajectory of several years, noting that half of 2020 was in paralysis due to the pandemic. The red-hot market that began in the latter part of 2020 continued into 2021 and will continue a positive trajectory into 2022. The difference will be that there will be more luxury sellers in 2022 than in 2021, and while there will be fewer actual luxury buyers, it is still a seller\u2019s market. The pandemic madness that drove us to an over-heated market is being normalized. Demand will remain strong, and a healthy, new normal in luxury real estate will start to take hold in 2022.\u201d<\/p>\n

Sustainability, according to the study, is now a major differentiator in luxury homes, and buyers are willing to pay a premium to have features and amenities that better prepare them for the future.\u00a0<\/strong>75 percent of those surveyed noted choosing their next home with sustainability in mind, with an unprecedented 90 percent noting \u201cyes\u201d as to factoring sustainability in relation to a Next Chapter in Life home search. According to the study, a \u201cNext Chapter in Life\u201d home search pertains to those moving to be closer to family, because of their children\u2019s education, a career move, and other mitigating factors.<\/p>\n

People interested in sustainability as a major factor of their home purchase are 71 percent more likely to view the purchase as a legacy home that will be passed on to their heirs. Further, as interest in sustainability grows, the quality of the buyer improves for the benefit of the seller, in that this buyer wants to transact sooner and for a relatively higher budget.<\/p>\n

FOMO<\/strong>, or Fear of Missing Out is the feeling of anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media.\u00a0With a year at home and headlines touting the hot market, FOMO has become a significant concern for 26 percent of luxury buyers.<\/strong>\u00a0FOMO manifests in different ways, first as a true \u201cmissed the boat\u201d moment where prices extend beyond reach. A second concern \u2013 equally impactful \u2013 is arranging finances for major purchases.<\/p>\n

While COVID-19 remains a significant concern, the study revealed that the market has already accounted for much of its effects. This compared to last year when the\u00a0top trend in luxury real estate was finding a home that would accommodate the family that works from home.<\/strong><\/p>\n

That said, according to the study,\u00a0working from home, is wearing on a substantial percentage of luxury home buyers<\/strong>. The Study revealed that 27 percent of luxury buyers cited working from home as a \u2018significant concern.\u2019 Remote work and the associated frustration and stress of being home continues to play a significant role in the purchase decision process.<\/strong><\/p>\n

Buyers concerned about de-stressing their work-from-home environment noted diversions such as entertainment at home, night life nearby, and relaxation-inducing amenities like a spa\/hot tub, a specialty cocktail scale, and specialty rooms for media and gaming.<\/p>\n

Additional key findings from the research include:<\/p>\n