Residential real estate has proven to be a reliable investment for the affluent. As reported by Luxury Portfolio International, “spending on luxury goods and services has declined this past year, while spending on the home has increased as people reimagine their living space.” As we look towards the future of luxury real estate, experts predict 2021 will continue to see a trend of people moving to the Suburbs form the city, an even greater uptick in 2nd home purchases, and private amenities continuing to be in high demand.
The second-home market is predicted to continue seeing an influx of buyers going into 2021. Luxury consumers will continue to realign their priorities to spend more on real estate that gives them and their families a sense of security, health safety, and privacy in a cocoon all of their own, as reported by Forbes.
As home spaces are being repurposed to fit the tasks of working from home and distance learning there is a greater need for more personal space in the home. Co-home offices, dens, and other home amenities are more important now than ever. Luxury Portfolio International reported that when asked, Luxury Property Home Owners said their home offices, gyms/fitness rooms, and swimming pools all tied for first as the amenity that has improved satisfaction in their home the most this past year.
Other luxury home amenities that are in high demand and are predicted to stay trending in 2021 include home theaters, wine & tasting rooms, and indoor-outdoor living spaces including outdoor kitchens. As detailed in the Great Wellness Surge paper, homeowners are using wellness practices to combat the stress of life at home nearly 24/7 leading to wellness rooms becoming more coveted. Families are looking for homes with game rooms and bonus rooms and of course complete connectivity smart homes.
The COVID-19 lockdown has led people to making permanent changes to their daily habits and the way they are living at home. The housing market is as hot as ever for luxury residences and long-term trends are stable as luxury spending is morphing into personal luxury investment. Stay tuned in for more market trends!
