The covid-19 pandemic has had far reaching effects across all sectors including property. And although many real estate agents have been closed or doing virtual viewings only, a recent survey reveals strong buyer appetite. The global residential market looks set for continued interest, stable prices and increased demand for green spaces.
Buyers still looking
The Savills Residential Global Market Sentiment Survey, carried out in late April, offers some interesting findings. The 50 correspondents in key markets throughout the world reported on buyer interest, price tendencies and shifts in demand for certain types of property.
The survey found that buyer interest in the global residential market remains strong. 90% of respondents said that 70% or more of buyers in their markets were still looking. “Very few buyers are stopping their search altogether,” reported the survey.
BRIC Group has noticed a similar tendency among its investors with demand remaining resilient over the last few months. It has been particularly strong in those market niches that respond to the new trends.
Vendors still selling
In this buoyant market, buyer sentiment is also key. The survey found that just 6% of vendors had considered taking their property off the market during lockdown. The tandem of sustained interest from buyers and supply inevitably leads to the question of price trends.
According to the survey, buyers generally expect prices to go down slightly in the global residential market. There are exceptions to this in high-end locations where demand outstrips supply such as the French Riviera. In these areas, prices should remain stable.
As regards vendors, just under 45% reported that they had thought of bringing down the price on their property. Around 37% said they planned to make no changes to the asking price.
Shifts in must-haves on global residential market
After being confined at home for long periods, people have changed their priorities when it comes to what they want and need from a property. The Savills survey identifies three key trends for homebuyers in the future.
Working from home has become the new normal for millions of employees worldwide so it’s no surprise to discover that buyers have put home office space at the top of their must-haves list. 86% of respondents in the survey said buyers are looking for designated space in the property for a home office. Wifi connection is another logical priority.
The third must-have is green spaces. 73% of global representatives who answered the survey said buyers are now placing big emphasis on the outdoors. Demand for green areas including private gardens have increased significantly among buyers. And there’s much bigger interest in properties located in rural areas as homeowners realise the advantages of being away from crowded urban areas.
Right place at the right time
The best investment potential comes when an asset caters directly to demand. This is the case with The Coral resort on the beach at Guajirú, near Fortaleza in Northeast Brazil. The resort sits on over 1 million square metres of natural surroundings and all properties enjoy access to the vast green spaces including the beaches. The villas have private gardens and their size allows for home office space.
We expect the location to become something of a luxury hotspot, particularly among high-end Brazilians looking to escape from built-up areas. Investment starts at US$40,500 and includes a range of options, each offering strong potential for return. Find out more about The Coral.
(Source: Savills)
