Looking to invest in a new luxury property this year? Whether you’re eager to secure the kind of lavish holiday home dreams are made of or to simply upgrade your city residence to something a little larger, the market looks a little different than it did a year and a half ago, and it’s important to know what you’re dealing with if you’re to land yourself a great deal.
From new ways of buying and selling to the notable trends when it comes to location, these are the four biggest trends that have swept the luxury property market in 2021 – and some of them might just surprise you.
Strong demand for second homes
In the wake of the ongoing pandemic and the associated lockdown restrictions over the past year, we’ve seen a monumental surge in the number of wealthy city dwellers seeking out second homes in the countryside. House prices in Devon and Cornwall have soared as more people than ever pursue luxury properties on the south coast in a bid to reconnect with nature and spend their days enjoying the beaches and coastal walks on offer at a time when travelling overseas has been tricky.
Despite its obvious perks, it seems that city life has taken its toll on many over the past eighteen months, and we now have a greater appreciation for the fresh air and the great outdoors.
Selling property without hiring a realtor
It’s been a trying twelve months even for the wealthiest of investors and property owners, so it’s perhaps unsurprising that a growing number have been taking matters into their own hands to sell off unwanted or unviable property themselves. With demand surging in some areas of the country, luxury property owners have been able to turn a tidy profit by selling as prices soar – and without the added cost of an estate agent, there’s been even more of it going straight into their bank accounts rather than being soaked up by additional expenses.
Analysing the market and setting the price of a property alone has always felt like a daunting task for many, but others have been taking the opportunity to learn more about the process in a bid to boost their knowledge and, ultimately, their portfolios. And those looking for a quick sale to quell any financial worries throughout the pandemic have been looking to sell theirs in exchange for hard cash.
Home buying companies like Favor Home Solutions buy homes as quickly as possible and once contacted, will inspect, offer you a fair price, and get you the cash within a few days if you accept.
A return to the city for some
Despite an initial crash early on in the pandemic, it seems that the market for luxury property in London and some of the UK’s other major cities is bouncing back. Following the successful vaccination rollout, which began back in January, it seems that former city dwellers are beginning to tentatively return to their former residences, and with job vacancies in the big smoke ramping up once again, we’re seeing an influx of people back into the city.
Nevertheless, we can expect those who have secured second homes in the country to continue splitting their time between the two, and a large percentage to stay put in their new-found haven for the long-haul. For many, a move away from the relentlessly busy lifestyle of the city has been a long time coming, and recent events have been the push they needed to finally take the leap.
Virtual open houses
Open houses have long been viewed as an essential tool by realtors when it comes to securing the highest possible price for a property, showcasing their full potential and often, attracting a flurry of high-net-worth investors and eye-watering offers as a result. But over the past year and a half, in-person open houses have all but been off the table, and were made completely out of the question during lockdown.
Instead, realtors have taken to hosting virtual open houses, allowing interested parties to participate from the comfort of their own homes – and this has proved to be an inspired idea. Not only has it led to a sharp increase in the number of attendees, but it has also meant that foreign investors who would have previously missed out on a live viewing now also have the chance to join in. As a result, we’re seeing more competition for particularly sought-after properties, and prices for the ultra-luxurious are continuing to surge.