7 property market trends to keep your eye on in 2023
As a brand new year gets underway, we all start to wonder what lies ahead. Beyond the ups and downs of property prices, we've put together an overview of the trends gaining ground by property type and use that will see the most demand in 2023.
1. Pre-owned homes.
Purchases of pre-owned homes will outpace new-build purchases in 2023, as the price of new-builds has been driven up by rising raw material, energy and labour costs, among others. This trend will be supported by forecasts that prices are set to stabilise or even gradually start to come down in the Spanish residential property market.
2. Sustainability.
The environment matters in the property market too. Sustainability is an enduring market trend that will gain even greater prominence in 2023. Using eco-friendly and recycled materials, slashing energy use by installing solar panels, battery storage or flooring that generates energy through foot power, and reusing resources by collecting rainwater for irrigation and flushing or keeping the same swimming pool water for multiple summers are all becoming popular solutions.
3. Co-living and coworking.
These solutions are gaining in popularity, particularly among young people and new entrepreneurs, due to rising office and housing costs driven by soaring inflation and interest rates on mortgages. Co-living offers young people a chance to leave home, and coworking spaces are ideal for new startups.
4. Smart houses.
Robotics and artificial intelligence are becoming ever more present in our homes. The idea of automating household processes is to make our homes more comfortable, but also to minimise resource use: setting the heating or aircon to come on just before we get in, switching lights on and off, opening and closing blinds or awnings and fitting taps with sensors are just a handful of examples of how domotics can make our homes more efficient.
5. Refurbishments.
The refurbishment craze driven by the need to restructure our spaces during the pandemic shows no sign of abating. Renovation projects to change the layout of certain rooms, such as bathrooms and kitchens, will still be all the rage this year.
6. Gardens and open spaces.
Another trend triggered by the Covid-19 pandemic is the increasing focus on properties with gardens or large balconies. The pandemic made us realise how important outdoor space is in making everyday life more pleasant.
7. Properties in other countries.
Higher-earning segments of the population are still keen to acquire properties in other parts of the world. According to a survey by The Wealth Report, around 13% of Ultra High Net Worth Individuals are planning to apply for a second passport or foreign citizenship in 2023. What that means is that they also have - or are looking to buy - properties in these countries. The same study showed that a third of global wealth is concentrated in the first and second homes of these UHNWIs, and that of that total, more than a quarter is located outside their main country of residence, with Spain positioned in the top 3 most popular places to buy property.