Luxury real estate market: top insights for 2023
by VillasBuy Team
According to the recently published Coldwell Banker Global Luxury Trends Report, 90% of the responders think that the real estate market in 2023 will be even better (or at least just as good) than it was in 2022, especially in terms of property investments.
The report underlines three main insights already defining the current year’s market trends. They are all extremely interesting for anyone planning to buy a new luxury home or a holiday house in some of the most exclusive locations in the world and can provide some exciting points of view if you’ve already set your eyes on your new estate.
Let’s take a look at them!
Who said a bigger property has more appeal than a smaller home?
The years of the pandemic certainly reshaped what people expected from their homes and, for a while, even directed new purchases.
In 2020, 2021 and, to an extent, even 2022, supersized properties were among the most popular and sought after and the reasons are easily imaginable. The perspective of being forced to stay home for a long time, of course, morphed the perception of the home itself: buyers were looking for airy, spacious, multipurpose properties where they could immerse themselves in a microcosm that, to an extent, temporarily replaced the world outside.
However, post-pandemic data signal a decrease in this trend. Especially when it comes to luxury properties, affluent buyers now seem way more interested in smaller luxury single-family homes. According to the survey, houses between 2500 and 3500 square feet tend to sell 19% faster than larger estates.
The reason is simple: COVID-19 has loosened its grip, its influence on lifestyle decisions is no longer so pervasive, and a big house is no longer considered an impellent necessity. After all, hybrid working has replaced remote working and kids are back to school: the world has returned to its “normal daily life”.
Picture by frimufilms on Freepik
International buyers are back in the saddle
2023 seems to be the perfect year for a significant lifestyle change, and that also involves your home – or even country!
According to the luxury real estate report, international real estate transactions are back on the rise, which means more foreign buyers are looking for exclusive homes in unique locations. The numbers are staggering, as about 92% of the US-based respondents showed interest in buying a property abroad, especially considering the dollar’s current strength and the robust housing demands.
Of course, Italy remains among the most sought-after destinations: its property market is stable and investing in a new house is considered safe. Finally, foreign buyers can purchase a property in Italy whether or not they live in the country, and that is an added plus.
Properties are the safest long-term investment
Over one-third of the survey respondents believe that the safest long-term investment is real estate. In fact, real estate ranks higher than stocks, bonds, cryptocurrencies and pensions, and the reasons include portfolio diversification, possible financial gain from rental income and inheritance for children or future generations.
A luxury property rarely devalues and, if properly maintained and renovated, increases its prestige especially when located in an exclusive setting. Potential buyers are aware of that, which is why they currently gravitate toward real estate investments to create financial stability and emotional and psychological comfort.
Finally, the detail regarding the climate is very interesting, as 2023 prospective real estate buyers are keen to look for their primary home and their second and third houses in countries and geographical areas less affected by global warming and climate change.
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Cover image by wirestock on Freepik