Like most real estate sectors, luxury real estate is ever-changing. Each year brings new trends influencing the industry in new unique ways, and as we move into the mid-2020s, the luxury real estate market will continue evolving in this manner, redefining the way we view luxury homes on the basis of technology, lifestyle, and buyer preference. Such changes are nothing new for Daniel Neiditch, an established New York City real estate mogul who, throughout his seasoned career, has bore witness to countless shifts in industry protocol, ideology, and infrastructure.
Here, Neiditch delves into several potential trends standing to impact luxury real estate in 2023 and beyond.
Smart Home Innovation
Smart homes are hardly a new concept in 2023, but as adjacent sectors like artificial intelligence (AI) and the Internet of Things (IoT) continue to rapidly advance, the luxury smart home market may reach new levels of sophistication and popularity in the foreseeable future.
According to the National Association of Realtors (NAR), smart homes are becoming increasingly popular with luxury homebuyers, who are looking for homes that offer convenience and security. In this sense, smart home technology is no longer just a luxury; it has become an expectation, with homeowners wanting to control their homes with the touch of a button. Features like voice-activated assistants, smart lighting, and security systems will soon become standard in luxury homes, and homebuyers can expect these features to become a seamless, commonplace part of such designs.
Embracing The Environment
The luxury market is also changing to reflect a broad shift to sustainable real estate – and a greater emphasis on seamlessly blending indoor and outdoor living. With the COVID-19 pandemic prompting many people to spend more time at home, there has been a renewed focus on creating comfortable and inviting outdoor spaces. In turn, luxury homebuyers are now looking for homes that offer a stronger indoor-outdoor living experience, with features such as outdoor kitchens, fire pits, and swimming pools becoming more popular. Luxury developers are responding to this trend by designing homes with expansive outdoor living spaces that offer privacy, tranquility, and stunning views.
On the sustainability front, many buyers are now looking for homes that are eco-friendly and energy-efficient. This trend is associated with a growing awareness of climate change and a desire to reduce one’s carbon footprint. Luxury designers are tailoring more projects to implement sustainable materials, such as reclaimed wood and recycled glass, and energy-efficient systems like solar panels and geothermal heating.
Emphasizing Individuality and Flexibility
Another trend set to influence luxury real estate in 2023 is the search for unique, flexible living. According to Bloomberg, luxury homebuyers are no longer content with cookie-cutter homes and are looking for properties that offer a more one-of-a-kind experience. In response, developers are emphasizing more personalization, with features such as custom-built wine cellars, private spas, and home theaters adding a layer of exclusivity to their properties.
These preferences come alongside a growing desire for home flexibility. Bloomberg reports that homebuyers are beginning to look for homes offering a change of scenery, with many purchasing second homes in different locations to meet a need for variety and exploration.
With 2023 already entering its second quarter, luxury developers and agents must stay ahead of these trends to improve their offerings, reflect consumer demands, and continuously innovate the real estate sector at large.