3 Macro consumer trends set to influences the property market in 2022
Category Newsletter: Lead Article
If there's one lesson to take from the past two years, it is to keep an open mind about what the future holds.And while we should approach "predictions" with scepticism, there is definitely value in looking to what experts reckon 2022 has in store, albeit as a compass that indicates direction as opposed to a map that leads to a specific destination.
Every year Euromonitor International publishes the Top 10 Global Consumer Trends. The report looks at the "emerging and fast-moving trends" anticipated to gain traction in the year ahead.
"It's been two tumultuous years as the coronavirus pandemic has influenced, arguably, every aspect of our lives. As such it's useful to look at some of the key consumer trends likely to shape the world in 2022 as consumer behaviour, interests and values have an important impact on business in general and the property market in particular," says Brenda Lange, Franchisee at Leapfrog Kempton Park & Benoni.
Three of the ten trends identified by Euromonitor International are of particular interest to the property market.
The great life refresh
The report refers to The Great Life Refresh as "drastic personal changes" and "a collective reboot of values, lifestyles and goals", all triggered by the pandemic.
"Such shifts in life priorities have a very tangible impact on the property market as our homes are the epicentre of our lifestyles. It's important that we recognise and respond to the changing needs of the market and respond accordingly," Lange says.
Buyers will opt to purchase properties that speak to their changing lifestyle needs and priorities, reflecting new goals. "As property professionals it is our task to understand these evolving needs of the clients and work as their partner in finding them the property that best matches these aspirations," Lange believes.
Climate changers
Mitigating the effect of climate change remains a global priority and on the microscale we're seeing more people prioritise a low-carbon lifestyle.
The report posits that as consumers become more aware of how their individual actions impact climate change, it influences purchasing decisions in favour of more eco-friendly alternatives. Interestingly, "in 2021, one-third of global consumers actively reduced their emissions and one-quarter used carbon offsets to compensate for them," the report states.
"There's been a definite increase in interest in properties with "green" features such as solar panels and rainwater tanks. In fact, we often see clients willing to pay a slight premium for these things, which speaks to its growing importance in influencing purchasing decisions," Lange says.
She adds that we're only likely to see more investment in green home technologies and reckons that property owners can be fairly confident that spending in this regard is an investment that will see great returns in the years to come.
Rural urbanites
Work from home remains a major trend, with the report finding that 37% of consumers expect to be working from home in the future, which has a keen impact on decisions around where to live, the kind of property to opt for, and what we need and expect from a neighbourhood.
"The semigration trend is already well understood and documented, as people seek a better quality of life outside the major metropolitan areas. Naturally this has a significant impact on the property market, particularly in how properties are valued," Lange shares.
And while "better air quality, less congestion and desire for simplicity and sustainability are becoming key selling points for the suburbs, countryside or smaller cities", it is interesting to note that consumers aren't giving up on urban living entirely. Rather, according to the report, there is a growing need for green spaces in urban spaces in urban areas, which in turn will see consumers "investing more in their homes and communities as they spend more time there," according to the findings of Euromonitor International.
"Any investment in improving properties and communities bodes well for the market in general as these investments, be it in the form of infrastructure or initiatives such as the establishment of a neighbourhood watch. These all help to make communities and neighbourhoods more robust and resilient, and ultimately have a positive influence on the value of the properties in the area," Lange says.
Author: Leapfrog Property Group
