Given that real estate is one of the most volatile fields in business, it fluctuates on a never-ending basis. Just consider, for example, the prices of homes from a few years ago compared to today’s valuations. Odds are, regardless of the type of property, there will be major discrepancies. With luxury real estate, these trends are even more obvious as the prices are much higher and more sensitive to the state of the economy.
Nevertheless, the number of individuals such as Dennis DeGrazia, who are in the market for a luxury property is still riding high. So, what are some of the contemporary trends that are enabling this industry to thrive continuously? In other words, what are the most noticeable patterns that the buyers of luxury property are expecting to see in 2019?
Blockchain-Based Applications and Transactions
In 2017, blockchain reached an unprecedented peak when it comes to values, the speed of incline, and almost every other important investment statistic. This led to a huge influx of buyers who became interested in anything that carried the word “cryptocurrency” or “blockchain” next to its name. Sadly, the incredible success was somewhat short-lived. Less than a year later, most values plummeted down to less than 30 percent of their peak.
Regardless of the downfall, blockchain technology still achieved something that most other technological advancements fail to do. It captured the attention of other markets which began looking for ways to implement it. Examples include sectors like healthcare or even military that have made moves towards implementing blockchain into their operations. Well, real estate is not much different. A great example would be modern apps that have been developed to help people invest in properties through a decentralized network. ShelterZoom is one of the most recent inventions in this area, and it is set to go live at the beginning of 2019.
New Buyer Demographics
Saying that the times are changing has probably never been truer. After all, the generational gaps are becoming more obvious with every new invention that hits the market. Thus, the buyer’s demographic for luxury real estate is slowly evolving. A few years from now, it would be normal to expect the bulk of those who explore this industry to be Millennials. So, why should sellers care about this? In translation, what exactly is the impact of this trend on luxury real estate in general?
Well, having a younger body of buyers means that real estate is going to start relying on tools like digital marketing more. In other words, the differentiating buyers will bring changes to the entire field simply by expecting something different than their older counterparts.
Smart Homes and Technological Upgrades
When it comes to luxury homes, the common denominator that sets them apart from regular properties tends to be the high level of technology and forward-thinking assets. Some examples include things like smart appliances, borderline military-grade security systems, and much more. Thus, the larger size of the property is not the only reason for the greater price. As far as the technological advancements themselves, below are some of the most highly anticipated inventions that are set to become popular this year:
- Remotely controlled camera systems;
- Phone-operated smart locks;
- Appliances that feature artificial intelligence;
- Refrigerators that use lasers to detect when produce is expired;
- Minor gadgets such as self-watering plants, automatically dimming lights, motion-sensor garbage cans, and more.
More Incentive to Make Large Purchases
Ultimately, according to the managing partner of the Highridge Development Co., Dennis DeGrazia, a spike in income is going to be the most important trend for luxury real estate. Why? Because it will allow individuals to initiate transactions that they may not have been able to even dream about in the past. A part of this change comes from the recent laws that were passed to help small businesses and reduce individuals’ tax rates.
Thus, the government expects to see more disposable income that people are going to pour back into the economy. As Dennis DeGrazia and many others then conclude, this income will eventually enable folks to make greater purchases, and the number of buyers in the market should go up.