We’re seeing the in migration throughout our market.
New Cities and Second Homes: Covid-19 Migration Is Far From Over
By V.L. HENDRICKSON | August 25, 2021 | Mansion Global
There’s no end in sight to the vast migration sparked by the Covid-19 pandemic.
Since last year, families around the world in search of increased space or second homes have landed new digs, and many more are looking to do so, according to a survey released Wednesday by Knight Frank. About 19% of respondents to the agency’s buyers survey, which included more than 900 Knight Frank clients across 49 markets, said they’d moved since the pandemic began early last year.
The relocation figure was highest in Australasia and North America, where 25% of respondents in each have moved since last spring. Of those who had not moved, 20% were planning on doing so in the next year, with 38% bound for the city, 33% to the suburbs and 15% to the country, the data showed. Another 13% said they were looking to move abroad, with Switzerland, France and the U.K. as the three most desirable destinations.
More room for at-home living was the main reason for relocating. Roughly 22% of those who moved noted outdoor space as the main factor in the decision, while 19% indicated a need for more square footage indoors, according to the survey.Respondents were also bullish on property price growth, according to Kate Everett-Allen, head of international residential research at Knight Frank.
“Over two-thirds of people expect the value of their current home to increase in the next year, with most expecting a rise of between 1% and 9% over the 12-month period,” she said in the report. “This coincides with Knight Frank’s Prime Global Forecast, which highlights that global house prices are, on average, likely to increase by 4% in 2021.”
More people are considering second homes because of the pandemic, as well. About 33% of respondents noted the virus as a reason to get another property, up from 26% last year, the survey said. Still, 17% said they were less likely and 22% noted their plans have been delayed because of Covid-19. Meanwhile, the survey found that 84% of clients noted the energy efficiency of a home was important, with “27% willing to pay a premium for a greener, more energy efficient home.” Roughly 28% would consider such a home if upcoming environmental regulations could affect its future value.