Living for the city…

To paraphrase Mark Twain, rumors of the death of the city center have been greatly exaggerated— people will always want to live and work in the metropolis, as our experts confirm

CITY CENTERS became virtual ghost towns at the height of the COVID-19 pandemic. Then as restrictions began easing, lockdowns lifted, and people started to creep back into the urban hearts. “Even as the vaccines were rolling out, there was a lot of chatter about whether highly amenitized buildings had a future. That chatter is history. City dwellers want more space and a place to work from home. They want privacy and security. But they also want community,” observers Thad Wong, co-founder and co-CEO of @properties Christie’s International Real Estate.

“Global cities are alive and well in 2023, but they’ve also got their work cut out for them,” adds Mike Golden, Wong’s fellow co-founder and co-CEO. “Certain aspects of city life need to be reimagined. We see this in our home base of Chicago. Within the downtown, some areas are thriving, and other areas that were once very stable are in need of innovation. It’s going to take some smart people, good leadership, and strong public-private partnerships to make sure cities continue to meet the evolving needs of businesses, visitors, and residents. But that’s nothing new. It’s been happening for hundreds of years.”

Of New York City’s bounce-back, Smitha Ramchandani, director of international partnerships, associate broker, Christie’s International Real Estate, New York, is unequivocally upbeat: “The luxury real estate market continues to operate at its own, independent pace. Despite uncertainty in the world, aspirations of owning a dream apartment in New York City remain high. Pieds-à-terre have gained popularity among city dwellers and international buyers alike.”

Some 1,700 miles (2,735.88 km) southwest, Texas was in a unique position during the height of the pandemic, with a short lockdown. “COVID lasted about 90 days before city and state leadership lifted most restrictions, so that created a storm of people wanting bigger homes with yards and pools,” says Jerry

Mooty, CEO, and principal, @properties Christie’s International Real Estate, Dallas, Texas.

This, he says, is one of the main factors that enticed families to pack up and move there. As such, he adds: “There has not been a big adjustment post-COVID-19 that we have seen.”

In the U.A.E., Dubai saw a similarly painless exit from the pandemic. The city has rebounded well, with 2022 sales value at AED 210.5 billion, compared with 2021 at AED 118.7 billion, a mammoth increase of 77.4 percent.

High-end properties comprised a significant part of these transactions, says Jackie Johns, managing partner of Christie’s International Real Estate Dubai. She says the figures showcase a full recovery from the initial global shocks of COVID-19, exceeding pre-pandemic performance.

Dubai’s bounce-back is down to myriad factors, says Johns, from the government’s efficient pandemic handling to the Golden Visa reforms, which offer 10-year, automatically renewable residency—one way it can be acquired is through property investments totaling a minimum of AED 2 million. “We are currently witnessing a rapid expansion of high-end properties, innovative new designs, and investors and residents, all buttressed by encouragement from the government through a variety of mediums,” says Johns.

In the U.K., the first wave of COVID-19 hit London hard. It was estimated 76,300 SME businesses closed permanently in the capital according to research by small business insurer Simply Business. The following three years have been a mixed bag politically and economically with (at the time of going to press) three prime ministers, inflation at a 14-year high and rising shop prices.

London is still desirable, but those buying today have different requirements. “They highlight the need for space. Access to private outside areas or a proximity to communal green space is key,” says Lisa Simon, head of residential, Carter Jonas. “People want more space including a home office, balcony, or access to the outside.”

Globally, there is good news looking ahead. This February the International Monetary Fund (IMF) outlook for the world economy became more positive as China began easing its zero-COVID-19 policies and the world showed some resilience given high inflation, elevated interest rates, and Russia’s ongoing war against Ukraine.

As a result, the global economy should increase 2.9 percent this year—a more positive prediction than the 2.7 percent expansion for 2023 that the IMF forecast in October 2022.

Golden says this of the post-pandemic metropolis: “Most global cities have bounced back. London, New York, Sydney, Paris, Toronto, Milan, Singapore—the world was excited to get back and enjoy these places again. But a number of other cities, be it organically or as part of a concerted plan, sprang from the pandemic to grow industry, tourism, and attract new residents. Miami, Dubai, Lisbon, Austin; cities in the Mid-South region of the U.S. have been incredible success stories. One thing is certain: the city is here to stay.” b