NEW YORK, Jan. 10, 2022 /PRNewswire/ — Sotheby’s International Realty is pleased to announce the release of its 2022 Luxury Outlook report, which identifies the trends likely to shape the world’s prime housing markets in the year ahead. The comprehensive report offers insight into the high-end real estate industry as the starts-and-stops of the pandemic’s reopening fueled even stronger demand and inventory struggled to keep pace. The global report reveals that relief from the market frenzy may not happen quickly as prices are expected to rise in 2022. In addition, a shift to a hybrid work model is fueling more buyers to invest in real estate and seek larger homes that can accommodate remote work while remaining within commuting distance
“Once again, Sotheby’s International Realty remains a trusted resource for buyers and sellers looking to navigate the luxury real estate market,” said Bradley Nelson, chief marketing officer for Sotheby’s International Realty. “It was important for us to offer our perspective on the trends ahead as luxury real estate remains a trusted investment amid relatively low interest rates and inflation. Now in its second year, the 2022 Luxury Outlook report offers expert insight following last year’s frenzied housing market and what buyers can expect in the coming year as pent-up demand from international buyers is expected to increase.”
The Sotheby’s International Realty 2022 Luxury Outlook report was compiled by surveying Sotheby’s International Realty agents around the world who transact in the US$10M+ price category. This information was complemented by gathering supporting data from other leading industry experts, including UBS Wealth Management; Henley & Partners, a global citizenship and residence advisory firm; the National Association of Realtors; in addition to art and luxury experts at Sotheby’s, the famed auction house, to round out luxury trends in the year to come.
Key findings featured in the report include:
- 2022 is likely to be the year of the international buyer as borders open and vaccinations and boosters roll out
- Nearly half of respondents agree that a rise in interest rates might affect the market
- In North America, millennials and Gen Xers are expected to make up the majority of luxury-home sales in the coming year
- Between 2018-2042, nearly US$70 trillion will be passed down from older generations and millennials will continue to use their share for real estate, according to Cerulli Associates
- In the U.S., price appreciation of second homes is expected to continue even after the number of transactions slowed due to limited inventory
- The most important amenities for today’s luxury buyers are a garage with storage, first-floor full bathroom, eat-in kitchen, and deluxe primary bedroom suite
“Following another historic year in real estate, Sotheby’s International Realty agents around the world continue to have their finger on the pulse on industry trends and market acuity,” said Philip White, president and chief executive officer of Sotheby’s International Realty. “Luxury Outlook heavily relies on the expertise of our network spanning 77 countries and territories to provide on-the-ground insight on the biggest stories in 2021, from the resurgence of urban cities to the role of cryptocurrency, and what it means for buyers and sellers in the short and long term.”
Click here to read the complete report.
Sotheby’s International Realty
Sotheby’s International Realty was founded in 1976 as a real estate service for discerning clients of Sotheby’s auction house. Today, the company’s global footprint spans more than 1,000 offices located in 77 countries and territories worldwide, including 47 company-owned brokerage offices in key metropolitan and resort markets. In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a franchise system. The franchise system is comprised of an affiliate network, where each office is independently owned and operated. Sotheby’s International Realty supports its affiliates and agents with a host of operational, marketing, recruiting, educational and business development resources. Affiliates and agents also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.
The affiliate network is operated by Sotheby’s International Realty Affiliates LLC, and the company owned brokerages are operated by Sotheby’s International Realty, Inc. Both entities are subsidiaries of Realogy Holdings Corp. (NYSE: RLGY) a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. Both Sotheby’s International Realty Affiliates LLC and Sotheby’s International Realty, Inc. fully support the principles of the Fair Housing Act and the Equal Opportunity Act.
SOURCE Sotheby’s International Realty