Property Market Trends – The real estate market in 2022 is off to a roaring start. Things in the home market are changing as COVID regulations ease, but there is still a lot of concern about the world’s stability and economic repercussions. In reality, loan rates unexpectedly fell earlier this month, creating a spike in property purchases. So, what are the plans for the rest of the year—and beyond?
Analysts believe that the current property cooling laws would impede house sales and price increases while severely restricting the en bloc market this year. Due to a restricted supply of new launches, new house sales in 2022 are expected to fall from the current 13,000 units to a more normalized 9,000 to 10,000 units.
Are you thinking about investing in real estate this year? Here are some property trends to look out for in 2022 and 2023.
House Hunting Will Become Much More Digital.
This is a no-brainer phenomenon. When the pandemic struck, digitization and home buying accelerated quicker than ever before. It had to happen. And it hasn’t slowed down since. I’m sure you’ve heard of or dealt with, home purchasers who bought a house without ever setting foot inside. Even a few years ago, that would have been unthinkable.
Agents are now assisting their clients using virtual capabilities like 3D Tours, Drone Videos, Virtual Staging, and more. The digitalization of the home-buying process does not end there. Every aspect of home buying has been affected. Obtaining a mortgage may now be completed entirely online, and even the final stage in the homebuying process—the settlement—can now be completed remotely.
From the Cities to the Suburbs
With the pandemic now being a normal part of our lives and more individuals being able to work from home, new customers are likely to be people wishing to leave the city and relocate to the suburbs. This tendency will not abate in the next years.
Personal choice and personal necessity are the two primary causes for this relocation. Some individuals want greater space, reduced taxes, and a more private way of life. They are relocating because they want to. Others have lost their employment, received a job transfer, or the cost of living has risen to an unsustainable level. They must relocate due to need.
Economic Headwinds Will Intensify in 2022.
The growing cost of living, as reflected in rising prices, will prompt the Bank of England to raise interest rates further. As a result, mortgage rates will skyrocket. Three-quarters of existing property owners have a fixed-term mortgage, which protects them from any immediate rate increases, and all those who have taken out a loan in the last couple of years or so have also undergone “stress testing” to guarantee their finances can survive their mortgage rates rising to the standard variable rate + 3 percent. It will become more expensive for people seeking a new house loan, but interest rates will rise from a low foundation.
Ecologically Friendly Homes
Eco-friendly projects have been and will continue to become the standard as people become more ecologically concerned. Furthermore, with energy and water prices rising and the work-from-home trend persisting, there is a greater emphasis on having green elements in houses, such as energy-saving equipment, smart-cooling technologies, and efficient appliances like Tubomart fittings installed in your housing systems.
As a buyer, you may expect developers to put more focus on creating environmentally-friendly facilities to mitigate the consequences of climate change and support green living. Since there has been a major focus on recycling and maintaining a sustainable environment through awareness campaigns recently, greenhouses are increasingly looked at positively and can even be perceived as indicators of excellence and upmarket living among the audience.
The Rental Property Market Is Declining
The rental market for both commercial and residential properties in major cities was on the decline in 2020, owing in part to a movement in population from cities to suburbs.
Demand for rental houses in major cities will continue to diminish as those who can afford it attempt to purchase a home and those who cann’t look for other ways to cut costs or fall behind on their rent.
While rental openings in big metropolitan regions are growing, demand for rental homes is increasing in mid-size and smaller communities across the country as demand for houses in these places outpaces availability.
Last year, majority of young workers gave up their residences and moved back in with their parents increased.
That concludes our list of the most important property trends happening right now.
It will be interesting to determine which of these patterns were caused by COVID-19. Or are they real, long-term trends that are likely to last?