TIMES.KY

Cayman Islands, Caribbeanand International News
Saturday, Apr 01, 2023

Going through the roof: what does 2022 have in store for global property prices?

The pandemic has transformed the global property market. In this episode of the Exchange, industry leaders offer their predictions for the $10 trillion sector in 2022.
Raising the roof


Lockdown, work-from-home, staycation - these are pandemic-era words we’ve all had to get used to. They’ve defined the way we live, work and travel, and have changed the dynamics of the real estate sector - one of the world’s biggest drivers of economic growth.

The global pandemic rebound is fuelling recovery in many segments of real estate. But uncertainty is still a big theme, as rising cases and new COVID variants threaten the return of movement restrictions.

Despite the uneven recovery, investments in real estate reached an all-time high in the third quarter, topping $755 billion, (670 euros), up 50 percent year-on-year.

And investors are keeping their portfolios diversified, with the residential sector now the most active segment ahead of offices, and driving 29 percent of transactional activity.

The post-COVID home


Behind the statistics and commercial figures the property market has always been profoundly affected by how people think and feel about design.

Interior designer Laurence Llewelyn-Bowen has spent decades working at that intersection between design, architecture and culture. He says tastes are changing with the pandemic forcing us to rethink our relationship with our homes.

"...architecture is a very very ponderous art form and will take decades - you know, an architect having an idea now will unlikely see the fruits of that idea for five, six years. People feel that there are very comforting ways to decorate now, and there are personal ways to decorate now, they’re decorating for themselves suddenly, rather than decorating for the estate agent that’s going to come around and value it or the work colleague that’s going to come around for a bottle of wine. Actually, people are socialising less, people are staying at home, and they are staying at home in these very comfortable, comforting, very domestic environments," says Llewelyn-Bowen.

Paris property prices soar


During the COVID crisis, some feared for the real-estate market in Paris, which has been one of the world's most flourishing for decades. But prices are up again and prestige property is even booming: Both Sotherby's and Barnes say 2021 will be a record year in France. A positive prediction, but does it match the sentiment from buyers and sellers on the ground.

You might have met the Kretz family while watching TV during lockdowns. Their Netflix show called 'The Parisian Agency' tells their real story: that of a family business specialising in luxury real estate.

2021 has been a bumper year for the Kretz family who specialise in luxury real estate.


The founder of Kretz and Partners, Olivier Kretz, told the Exchange: "People are looking for apartments with space, with gardens, because they have suffered during the confinement. Big apartments without outdoors [space], prices went down or stabilised, and the others with outdoors, prices went up.

Valentin Kretz also believes more and more people want to realise their property dreams and put their plans into action.

"I think it's really a global trend. People during COVID had the time to think about their future project and now is the time to make this project happen.

He concludes by saying property remains one of the soundest investments: "Right now the investors and rich families want to invest, and they want to invest in a safe investment so what's better than real estate?"

Betting on property


So the pandemic has changed consumer trends, and how realtors are coping with the movement of people in big cities, but what’s the sentiment like for investors looking for bright spots to cash in on?

Sean Coghlan is the Global Director of Capital Markets Research at the real estate investment firm JLL in New York. He believes 2022 could offer many opportunities with sustainability and technology driving both design and innovation.

"We have entered this new era of living, working and playing, and we are still in that period of experimentation and there is still much to be determined, which creates opportunity. Sustainability is shifting from a nice to have to the only way forward. Technology, where groups have a lot of conviction, from an investor perspective, that could fit into a lot of different areas of the market. But I think it's a theme where you're going to see groups moving on opportunities in the markets next year."

So, Investors, designers and deal makers all agree that the property market appears to be weathering the COVID storm. But the pandemic, like climate change, has only just begun to reshape the sector and our society as a whole. Grasping psychology and culture is fast becoming as critical for developers as financial analysis. To win in 2022 then, property firms will need to adapt to a very different way of thinking about the spaces where we live and work.

Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
Don’t Dismiss China’s Peacemaking Bid
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Nashville style execution
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Former Starbucks CEO Howard Schultz:
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
AMERICA, 2023
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AOC explains why she opposes banning TikTok
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
×