221® Luxury Network’s response to real estate market news from Sotheby’s Luxury Outlook 2022

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Luxury outlook

Sotheby's Luxury Outlook 2022

Sotheby’s Luxury Outlook 2022

From the analysis carried out by Sotheby’s, it is possible to get an idea of ​​the state of the international real estate market by the end of 2022.

LAUSANNE, SWITZERLAND, July 2, 2022 /EINPresswire.com/ —
It is now a certain fact that the pandemic has been a decisive historical event in bringing about substantial changes in many sectors, some of which have been stuck for some time in an impasse, presenting itself as a real decisive turning point. The pre-covid era, in fact, has shown very different scenarios compared to what the situation is today in many markets, which for better or for worse have been affected by the changes and have are adapted to it by reacting with innovative solutions.

The luxury real estate market notably reflects the way people have changed their relationship to the home, which today fulfills very different functions compared to those of the pre-covid era. What are these new needs? What type of home are buyers looking for? Who are the new buyers? 221® Luxury Network has tried to answer these and other questions with its innovative solutions, also carefully examining the data taken from the Luxury Outlook 2022, compiled by the platinum member Sotheby’s International Realty, which has chosen the Italian platform to sell some of its most important properties in the United Kingdom.

THE NEW NEEDS OF BUYERS
Today, the home environment, with the adoption of smart work, has become a place where private life and professional life coincide. 2022, in particular, is the year in which hybrid solutions prevailed, where part of the work was carried out face-to-face and part remotely, unlike 2020 and 2021 which saw the clear predominance of the second mode.

This change has had a huge impact on the real estate market, with the growing demand for even larger homes to keep the two dimensions as far apart, while remaining in the same environment.

Millennials, especially Americans, have now conquered a role of true protagonists in the real estate market, helping to change its destiny: if before they were more inclined to evaluate rented solutions, today they prefer to buy, also thanks to the economic availability inherited from family members. Nearly $70 trillion will be passed on from older generations between 2018 and 2042, according to Cerulli Associates, and millennials will continue to use their share for real estate. The perception of instability given by the historical period, the growing bond like the house which fulfilled the role of safe haven in a moment of general chaos, certainly pushed this fringe of the population to make more definitive and less ephemeral choices. At the same time, tech companies have moved or expanded their headquarters, influencing many Millennials’ home buying choices. It is the secondary and tertiary cities, and no longer the large metropolises, which host the main technological hubs, fueling the demand for social housing.

In addition, the arrival on the scene of Millennials has made the sustainability of homes no longer an accessory element, but a decisive element in the choice of purchase, thanks to the growing interest that these generations have in environmental issues. Another element to consider is the curiosity with which Millennials approach cryptocurrencies for the purchase of many services and goods, and it is not excluded that the real estate market is the next destination for their crypto-savings. In this sense, 221® Luxury Network was a pioneer in introducing the possibility of real estate transactions with cryptocurrencies for the purchase of the Cavalli Tower in Dubai, starting a trend which, although still in its initial phase, is intended to grow and increasingly intercept the needs of this new range of buyers.

PANDEMIC AND THE REAL ESTATE MARKET
A trend that took hold immediately after the outbreak of the pandemic was due to restrictions on international travel, which made buyers less inclined to buy properties outside their own territory, thus affirming the dominance of the local dimension over the global dimension, also thanks to the absence of foreign competition. According to the National Association of Realtors, in the United States, between April 2020 and March 2021, there was a 27% drop in purchases by international sellers compared to the previous year. In Spain, according to the Spanish Association of Cadastre, the first quarter of 2021 saw a 23% drop in foreign investment compared to the same period in 2019. In this perspective, solutions such as those offered by 221® Luxury Network today represents a solution to restore the global dimension to a central role in the sale of luxury properties.

FROM 2021 TO 2022: WHAT IS CHANGING
In 2020, for the wealthiest buyers, the second home represented a solution that allowed them to distance themselves from the pandemic. By choosing solutions with easy access to the beach, to the mountains or to picturesque and uncontaminated places, the house has increasingly become a place where not only to have fun, but to take refuge to find a feeling of tranquility. and protection against external threats. However, in 2021, encouraged by the special characteristics of the real estate market, the launch of the vaccine and the falling number of infections, there was a desire to buy a house in its own territory. In 2022, the scenario changes once again: the reopening of borders, hopefully definitively, puts international buyers back in a position of strength in the real estate market. The decline in foreign investors has not affected the pace of transactions or the level of competition between domestic buyers, quite the contrary: prices are expected to rise in the coming months due to a scarce supply that is struggling to keep up with demand. . High-income earners are watching foreign real estate investments with growing interest: Americans, in particular, are valuing regions like Portugal, Italy and France.

221® LUXURY NETWORK IN THE CURRENT SCENARIO: INNOVATIVE SOLUTIONS IN TIME
221® Luxury Network is a virtual ecosystem that transforms the way consumers buy and sell properties and connect with real estate professionals, as well as their lifestyle. It is a dynamic and living database of over a trillion dollars of luxury homes, commercial properties and new developments. 221® thus promotes collaboration and global interaction between the various players in the real estate market and beyond – buyers, sellers and tenants, as well as professionals in the sector – thanks to the intervention of intelligent technologies, systems and processes capable of simplifying and to automate daily actions on an international scale. A truly global network where insiders meet and build relationships aimed at buying and selling luxury properties anywhere in the world.

“221® represents a solution within the reach of Millennials who are certainly more open and inclined to use smart solutions that can facilitate and simplify operations”, says Cassiano Sabatini, co-founder and COO of 221® Luxury network. “Being the real protagonists of the luxury real estate sector today, it is conceivable that they will be the ones who will colonize the buyer-side platform in the immediate future, being able to grasp the potential inherent in this system more than their parents, not only thanks to the services offered but also for the possibility of using cryptocurrencies. Moreover, if today the trend is to return to a purchase on an international scale and no longer local, platforms such as 221® represent the ideal place for the meeting of insiders of the sector, connecting sellers and buyers from all over the world. world, who with a simple click can get in touch with professionals on the other side of the globe and see the most beautiful and luxurious properties in all four corners of the globe”

PRESS KIT (images, logos…): https://cutt.ly/0G7lz8Q

Gian Maria Brega
Mammamia Agency
+ +39 3389020851
[email protected]
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