The 5 new trends in luxury real estate

The year 2020 has been a real turning point for the property market, shattering the established codes. The luxury sector has continued to grow, with the number of sales doubling and the average price of family villas rising by 4.8% since January 2020. This activity is in good shape, due to the health crisis. Indeed, today's wealthy buyers are looking for more than just villas or properties, they want above all places to live, offering large spaces and an environment close to nature.

These aspirations were observed by The Institute for Luxury Home Marketing. Here's a look at the five major trends revealed by these studies.

1 - The wealth of intangible assets

The health crisis has highlighted the fundamental values of health, safety and family. The current period has put these back at the centre of thousands of people's lives. Material possessions have taken a back seat to quality time spent with loved ones, around a table or on a video call. These moments have made future buyers realise that only the ideal house will be able to accommodate their loved ones and thus become a real home.

2 - New lifestyles, new horizons

Since the beginning of 2020, we have been experiencing an upheaval in our daily habits. Home office, social relationships, leisure activities, closing of shops... For many, this change has also been synonymous with opportunity: some have taken early retirement, while others have simply changed their pace of life. The greatly reduced travel time and the closure of many public places are pushing families to find properties that really correspond to their needs: greenery, space, security, but also swimming pools, sports facilities or cinemas. In order to be able to do this, they opt for advantageous financial solutions or move to cities where the cost of living is lower.

3 - The importance of estate agents

More than ever, real estate experts have become essential allies in finding the ideal property. In a world of constant change, being able to rely on the sound advice of professionals allows you to make the best decisions, thus ensuring the success of a property project. Buying a property is often a responsibility, and can be a source of stress. As true experts, real estate agents understand their clients' desires and doubts, offering them properties that match their profile. Always attentive to the market, they adapt to new trends, including for example virtual visits or certified digital signatures. A support that allows you to take this important step with serenity.

4 - The urban exodus

New lifestyles are redefining the demographic characteristics of large cities, which are seeing some of their wealthy inhabitants move elsewhere. These city dwellers, tired of the metropolis and ready to leave everything behind in order to enjoy a new way of life, are called "precursors". They swap the hustle and bustle of the big cities for peaceful suburbs and holiday resorts, where they flourish in the heart of little-known picturesque villages.

The exiles from the city centre move to the residential suburbs, where they find the space they have lacked for many years. This demographic migration contributes to the gentrification of certain neighbourhoods, which then create quality services that meet the expectations of these very well-to-do families: private schools, housing, sports and cultural facilities, etc.

Others choose the calm of small remote villages and unsuspected corners of paradise, like explorers. The choice of these regions is not by chance, as they offer a significant advantage: the cost of living is lower, allowing them to live even more comfortably.

Finally, there are those who choose to live in a postcard setting all year round: holidaymakers. They benefit from the peaceful setting of their second home, either permanently or regularly.

5 - A different distribution of wealth

Wealthy people leave the hustle and bustle of the cities and move to places where life is good. For example, many explorers choose the countryside or the Swiss Alps for their peaceful surroundings. The hyper-centre of the metropolises is being deserted by very wealthy households, who prefer the suburbs and their space, such as the communes of Bernex or Thônex. A villa that perfectly illustrates this trend is currently for sale in Thônex (Conches): Splendide villa individuelle - Conches - Achat. This villa is ideally located in the outskirts of Geneva, allowing quick access to all the amenities of the city. Holidaymakers are spoilt for choice and are settling all over the world. Are these new lifestyles the ephemeral effects of the current crisis? Or are they becoming a permanent feature of today's and tomorrow's lifestyles? In any case, Swissroc Properties remains attentive to new societal and real estate trends in order to remain as close as possible to its clients' needs.

Sources: inman, Coldwell Banker Global Luxury®, The Institute for Luxury Home Marketing, WealthEngine and Wealth-X, "A Look at Wealth: New Affluent Trailblazers" report.