Global Appetite to Buy Property Continues, Despite COVID Outbreaks
The latest Worldwide Global Homebuyer Survey by international real estate advisor Knight Frank, released this week, analyzed the impact of Covid-19 on the attitude of homebuyers to buy a home around the world.
The survey, which represents the opinions of over 900 Knight Frank customers in 49 global markets, found that:
• Globally, 19% of people have moved since the start of the pandemic, compared to 25% in Australia and North America. 20% of non-migrants are more likely to move in 2021 if the pandemic continues.
• Cities favor again. Of those surveyed who are more likely to move in the next 12 months, 38% consider urban areas and 33% choose a suburb.
• 46% of respondents are more likely to buy a detached house or villa, but demand for housing has increased to 19% (up from 12% in 2020). This reflects the growing demand for larger and more spacious homes and batteries in urban centers.
• The appetite of ski resorts has increased from 11% in 2020 to 18% in 2021, and there is demand from North American and Asian buyers around the world.
• Eighty-four percent of respondents said that the energy efficiency of their future home is important to them. 28% said they would buy a more energy-efficient home if future environmental legislation had a direct impact on its value, and around 27% would be willing to pay a premium for a greener, more energy-efficient home.
Kate Everett-Allen, director of Worldwide international housing research at Knight Frank, said: “More than two-thirds of people expect to enjoy their current home in the next year or so, and most expect a growth of 1 to 9% in 12 months. This is in line with Prime Minister Knight Frank’s global forecast, which points out that global house prices will increase by an average of 4% in 2021. “
Additional findings from the report show that the pandemic has sparked a surge in demand. About 33% of buyers say they are more likely to buy a second home because of the Covid-19 virus, up from 26% last year. Of those who want to buy a second home, 23% say the pandemic has affected where they want to buy, and 22% say it has delayed their buying plans.
Mark Harvey, Director of International Home Sales at Knight Frank, also commented: “Major buyers in Europe and the United States will now find a very different environment through 2020. Inventories are lower, sellers are less willing. to agree on a price, and after several months of strict travel restrictions, external demand is Worldwide tightening. Some buyers are willing to take a more vigilant approach and look forward to the last quarter of the year when they expect sellers to be less ruthless on pricing. Others want to act quickly if they see the compelling value before prices rise.
“In recent months, two trends have emerged. First, the growing uncertainty of some buyers as to the location if they can ensure a condominium that offers the lifestyle and the fun they have lost.
If we look at branded homes, the survey found that one in three buyers (39%) would like to pay a premium for a branded home – that figure climbs to 45% and 43% in Australia. One of the main reasons to buy a branded home is the services and amenities offered by such a Worldwide development. Second, the high performance of the development, and third, the management and maintenance of the building has proven to be an attractive option.
Finally, the report highlights the growth in real estate transactions of immigrants in the original population due to the pandemic. The survey results confirm that the United States, Singapore, Worldwide Hong Kong, the United Kingdom, and the Philippines were the main places where foreign respondents were located before the pandemic. The main motivating wish of returnees was to be closer to family (36%), followed by an improvement in the quality of life (24%) and a change in working conditions (16%).