Against a backdrop of economic uncertainty and volatility in several asset classes, New York’s steady price growth, rising rents and low purchase costs are attracting investors looking for an inflation hedge in a global and transparent market.

Insight highlights:

• Prime prices in New York are forecast to rise 2%
• Prime and super-prime sales resilient after 2021 post-pandemic surge
• New York’s ten neighbourhoods with the highest median rents Jan 2023
• Manhattan’s rents rise as inventory shrinks
• Chinese students studying in the US

Download the New York Market Insight Q2 2023 report to read more.

The ‘race for space’ has grabbed headlines globally but cities look to be mounting a comeback

This is the first in a series of articles delving deeper into the results of Knight Frank’s Global Buyer Survey 2021. The findings provide a unique insight into what impact Covid-19 has had on housing demand around the world.

Conducted between 10 June and 22 July 2021, the findings represent the views of over 900 Knight Frank clients, located across 49 countries and territories.

This is the second time we have undertaken the survey. In 2020, the survey was firmly focused on who was moving and where.

This year, we’re keen to understand if the changes we’re seeing are permanent, for those have moved home since the start of the crisis, what are their next priorities and crucially, how do buyers’ motivations and priorities differ globally?

On the move

Globally, 19% of respondents have moved house since the start of the pandemic, this figure rises to 25% in Australasia and North America.

With strict lockdowns imposed in most markets over the last 18 months it is no surprise that more space was the top priority for buyers – 22% said more outdoor space was the key motivation behind their move, 19% said indoor space was the critical factor but there were regional variations.

In Asia, indoor space was a greater motivation, in Europe and Australasia outdoor space was the bigger driver.

Upsizing and divorce were cited as other reasons for moving, but for some the decision was purely financial, acting early to secure a mortgage before their incomes were hit by furlough or salary sacrifice schemes.

Of those that have yet to move, 20% say they are more inclined to move in the next 12 months. Perhaps most surprising, is the extent to which cities are back in favour. Globally, of those respondents that are more inclined to move in the next 12 months, 38% are looking at a city location, while 33% are considering the suburbs.

With urban living a particular aspiration for buyers in Asia and the Middle East it’s to be expected that the popularity of cities is notably high here – of those planning to move in the next year, 44% and 50% respectively are looking at a city base. Of those yet to move, 13% are considering a move overseas with Switzerland, France and the UK the top three preferred destinations: all mature, transparent economies offering stable political governance, a good quality of life and advanced vaccination programmes.

Read the original post here.

The pandemic-induced ‘call of the great outdoors’ saw mountain living catapulted back into the spotlight given the lifestyle it offers; fresh air, privacy, exploration, views and open space.

Knight Frank’s Attitude Survey in The Wealth Report 2021 confirms the increasing appetite for ski homes. Globally, 11% of wealth advisers said their clients were more interested in purchasing a ski home as a result of Covid-19, this figure increased to 26% amongst European ultra high net-worth individuals.

With two ski seasons impacted by the pandemic, resorts in the French Alps are expected to see a busy 2021/22 season.

Since the start of the crisis, demand that usually targeted hotel accommodation switched to the chalet rental market as skiers looked to avoid communal spaces and have the option of balconies or outdoor space during their stay.

French, Swiss and Italians flocked to the region when travel was permitted providing holiday lets with a welcome rental boost in summer 2020.

Sales in the Haute-Savoie and the Savoie departments which are home to the key resorts in the Alps increased by 2.5% and 3% respectively in February 2021 year-on-year according to France’s CGEDD. Prime prices increased 2.5% on average in 2020, with the resorts of Megève (4.5%)and Chamonix (3.5%) registering the strongest increases.

Private and institutional capital is increasingly targeting the Alps due to the appealing tax regime offered on new-build properties. By offering a fully serviced rental property for 20 years homeowners receive a 20% VAT rebate, an initiative that applies nationwide.

Alpine resorts are transitioning into year-round resorts investing heavily in both their ski and non-ski offering. Such plans not only boost tourism but leave resorts less exposed to concerns around climate change.

The key challenge of Brexit is perhaps surprisingly not the 90/180 day rule, given few British homeowners would usually spend more than three months in their ski home, instead it relates to the hiring of British cleaning and support staff when offering guests all-inclusive stays. More cost and bureaucracy will now be incurred due to the requirements to employ French or EU nationals.

Read the original post here.

How and where do we move forward from the undeniable impact of the pandemic? The resilience of prime prices in the world’s top cities is attributable to several factors to show a distinction between 2020 vs 2008 market conditions, as far as luxury residential markets are concerned.

Read more on key global insights on the prime residential market on the Prime Global Forecast 2021 report.