The COVID-19 pandemic has thwarted practically every economic forecast from the start. Stores, restaurants, and businesses cleared out in record time in March 2020. The stock market plummeted, and employment vanished almost overnight. However, the long and terrible economic decline that many Americans expected did not occur. The economy, as well as the real estate market, rebounded in record time. By early 2022, the output may have recovered to pre-COVID-19 levels, and jobs may have recovered to pre-COVID-19 levels.
To many, the real estate market may appear to be relatively unchanged since the pandemic. It isn't the case. Some marketplaces and industries may have permanently transformed. Some buildings and other assets have outlived their usefulness, and property managers must now consider how to reuse them. Supply chain constraints, which hinder or stop manufacturing, are another economic stumbling block. Inflationary fears, a major economic threat, are exacerbated by labor and goods shortages.
Despite all this, the lifestyle trends that evolved during the home-buying boom will continue and even strengthen. This is especially true in the case of remote employment, as many businesses have come to terms with the desire for more flexibility in the long run. This means those home offices, outdoor spaces, and buildings that allow inhabitants to work from the building will prosper.
As many people move into new homes in new places, home design that is highly functional and encourages well-being will remain a major goal.
The worldwide real estate market has been predicted to develop at a compound annual growth rate (CAGR) of 10.5 percent from $3386.11 billion in 2021 to $3741.06 billion in 2022. The increase is primarily due to companies reorganizing their operations and recovering from the impact of COVID-19, which had previously resulted in stringent prevention strategies such as social distancing, remote working, and the closure of commercial activities, all of which created operational challenges. At a CAGR of 9.6%, the market is estimated to reach $5388.87 billion in 2026.
You're probably well aware that the real estate market is always shifting. As a result, you must constantly keep up with new real estate trends!
The epidemic hastened digitization in all industries. The real estate market is no different.
Because of the epidemic and the competitive property market in 2020, some customers bought their homes without ever seeing them. Because of virtual capabilities, such as 3D tours, drone recordings, and virtual staging, many people were able to virtually tour the property.
Online searches for "virtual staging," which had been on the rise before the epidemic, spiked in 2020, while demand is expected to drop slightly after the outbreak.
The home tour isn't the only part of the home-buying process that's getting digital.
Mortgages can now be obtained entirely online.
Three major factors distinguish the current market. Housing demand is exceedingly high, while supply is at historically low levels. At present, the number of real estate agents in the industry is at an all-time high. Interest rates are also at an all-time low.
Due to low borrowing rates and great demand, homebuyers may be willing to pay more for their property than in the past. Getting pre-approved for a loan is also very simple right now. Low mortgage rates can always make a bargain more appealing.
The luxury-home market will continue to be fueled by travel and wealth growth.
Following another year marked by shifts in work habits and increasing affluence as a result of the coronavirus epidemic, 2022 appears to be the year of the international investor, with reopened borders and eager house buyers expected to push luxury markets around the world. Emerging varieties, on the other hand, provide unpredictability and new problems for those high-end industries.
Despite their differences, big global cities such as San Francisco, London, and New York will all profit from the returning buyer group, which is primed to push both deals and prices higher.
Experts predict that flex space, as well as larger homes and outdoor space, will continue to be in high demand, with lockdown regulations still alive in many homeowners' minds.
In the year 2022, real estate developers will make large investments in the suburbs. Because of the creation of special IT economic zones nearby, as well as the existence of reputable educational institutions and other vital necessities, such micro-markets have experienced a steady influx of migrants from outside the city. These suburbs provide decent access to the rest of the city and, as a result of increased commuter connections, have become a popular choice for house owners. Micro-markets have become a sought-after real estate area due to the availability of homes at lower prices than metros while yet being close to all major amenities.
Consumer demand for single-family houses is increasing as people migrate from cities to the suburbs.
Several factors are driving demand for single-family homes, including:
• Interest rates are low.
• Strong housing trends due to quarantine, social separation, and telework;
• Growing relevance of the home due to isolation, social distancing, and remote work; pre-pandemic
Another concurrent development is Millennials starting the home ownership stage of their existence, which adds to the pandemic-related demand for housing.
Suburban development is also being fueled by millennials eager to buy their first home or start a family.
If purchasers fleeing to the countryside characterized real estate in 2020, 2021 was considered the year they returned to the city. People will return to the city in 2022 just as they did in 2021.
Sales skyrocketed in cities all around the world, with volume setting new highs and prices constantly rising. Buyers are searching for larger homes with specific outdoor space as well as proximity to attractions like parks or the lake, and this trend is likely to continue into next year. Many purchasers are also interested in boutique buildings with smaller units that have a more communal atmosphere.
Projects with huge, open parkland or large roof terraces with summer kitchens are still popular, as many people like to entertain outside and stay connected to their natural surroundings.
Branded apartments will also continue to be popular, as they offer in-house spas and dining experiences, as well as five-star treatment and the security of a full-time crew monitoring the property while the owners are abroad. Furthermore, purchasers are drawn to big-name architects because they are famous for both the quality of their work and their excellent investment potential.
The primary qualities of wellness housing communities are those that have a significant impact on human health and progress. With health and hygiene moving towards center stage, the demand for high-end facilities that encourage a healthy lifestyle has skyrocketed.
New features and amenities that encourage physical activity, such as specialized meditation spaces, unique wellness functionalities, oxygen-infused clubhouses, organic and herb lawns, yoga courts, Vitamin-C showers, reflexology pathways, and chlorine-free gyms, have become home buyers' favorites, from walking trails and clean and green environments to pollution-free air and neighborhoods.
Globally, The Real Estate Rebound Will Last Until 2022
Following a robust recovery from the pandemic in 2021, global real estate is expected to have another solid year in 2022, with returns of 8% expected. Despite interruptions in the product and labor markets, as well as localized COVID infestations, economic activity and employment creation will continue to increase at a steady pace, supporting global real estate returns.
· Real estate markets will reflect the varied character of the global economic recovery. In 2022, we expect properties in North America to return more than 9%, while returns in Asia will be 6.9%.
· Easing COVID limits should assist the residential sector and, to a lesser extent, the office sector, with returns of 8.6% and 6.6 per cent, respectively.
· The industrial sector – particularly distribution, storage, and urban logistics – should continue to deliver superior returns due to the long-term transition to online sales and a still high share of expenditure on goods.
Real Estate in Ghana
In 2022, the trends of real estate in Ghana are most likely to be:
There are more affordable homes available on the market.
More people will be able to purchase homes with the help of mortgage lenders.
Just like every other industry, the real estate industry is affected by global events. A series of negative events can disrupt the global real estate development process. COVID-19 was such an event that brought changes to the real estate industry. Where new real estate trends such as online home searching reached their peak, on the other hand, the closure of buildings, offices, and restaurants impacted the real estate property value.
2022 witnessed real estate bouncing back on its feet, and the progression is likely to continue in the future. It is vital for real estate companies to be vigilant about real estate changing trends so that they can meet the customers’ demands. Devtraco Plus is one such real estate company that keeps up with the trends and gives customers exactly what they desire!