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13-MONTH MARKET TRENDS
Migration to emerging markets is also set to continue, as many of these smaller cities are recipients of the relocation of a major corporation or a new business center start-up. These markets are not only attracting new residents, but also providing opportunities for the affluent to set up subsidiary businesses while taking advantage of more affordable luxury properties.
2021 saw many discussions about the state of our environment, the abuse of our health, wellness, and natural resources — which in many ways was also forced to the forefront by the pandemic.
In 2020 and 2021, luxury developers and residential and commercial builders — especially in the high-rise sector – began to recognize that individuals were no longer comfortable in small spaces or sharing common areas and there was a growing concern about the quality of control of amenities such as heating, ventilation, and air quality. Equally, it has been acknowledged that the building sector currently contributes nearly 40% of carbon emissions globally, with 70% of these in urban areas.
In 2022, the real estate industry’s leadership — the Urban Land Institute, a worldwide alliance of leading real estate owners, investors, and strategic partners — has committed to providing guidance on prioritizing sustainable development and operational practices to help inform sustainable policies at all levels of government, especially local.
In a recent study by Google, 82% of shoppers said that sustainability is a bigger focus for them now than it was before the pandemic.2 Growing trends amongst the wealthy, which clearly show an understanding of environmental and sustainability issues, could once again prove to be the leadership that directs luxury industries into rethinking and implementing new sustainable practices in their processes – and as with other trends if these prove to have longevity then they will filter down into other industry sectors.
In conclusion, 2022 may still prove to be an uneasy year, as the world still faces many uncertainties from the pandemic, environmentally, economically as well as politically, but there are bright spots as there is refocus on how, not just the affluent, but individuals in general are recognizing the need for social and environment change.
1 https://blog.coldwellbankerluxury.com/a-look-at-wealth-2021-real-estates-new-power-players/ 2 https://www.thinkwithgoogle.com/consumer-insights/consumer-trends/consumer-sustainability-trends/
