The webinar, Changing Lifestyles In The New Normal, hosted by Sotheby’s International Realty, discussed ways of enhancing lifestyles through art and second homes in the UK and other key European destinations. By Ayushi Sharma
In the new normal, a second home will be an extension of our primary lifestyle for encompassing our personal and professional lives. Vacations will now be about a safer home away from home. And Indians are betting big on price real estates abroad, taking advantage of a depressed market. India Sotheby’s International Realty hosted a panel discussion on Changing Lifestyles In The New Normal by established thought leaders and industry experts. The panelists were Edward Gibbs, Chairman, Head of Department, Middle East & India, Sotheby’s Auction (London); Natalie Mik, Global Vice President Affiliate Services, EMEIA Sotheby’s International Realty Affiliates LLC; Nicholas Spencer, Business Development Manager, MEA & India, Berkeley Group and Akash Puri, Director International, India Sotheby’s International Realty. The webinar aimed at discussing ways of enhancing lifestyles through art and second homes in the UK and other key European destinations.
Akash explained some of the typical reasons why Indian clients are investing in a second home overseas. He said, “London has always been a preferred destination for Indians. It is the cultural and educational capital of the world so there’s a lot of aspirational value. For London, there is a demand and supply shortfall of 40 per cent at this particular moment. This probably will grow with the delays in construction that may have been caused because of the pandemic. Nowadays, buying a property overseas is not a wishful thinking anymore but is prudent financial advice for anyone who wants to diversify and enhance their wealth portfolio. We look at diversification through real estate. There’s a great rental deal that one gets, which is higher than the inflation rates, very different from what happens here. The third level of income is the long-term currency play. So if you look at capital appreciation of your property, the rental deal and the currency play, you are looking at a double digit return on an annual basis. If you ask why the United Kingdom? The answer is because it is number one in the global real estate transparency index.”
Natalie gave an overview of EMEIA region i.e. 35 regions for Sotheby’s Realty operations. She shared, “First of all, I would say that our offices all across EMEIA have been incredibly fast in adjusting and innovating in times like these. Well, the first three months were quite challenging. However, now we are seeing phenomenal growth across different regions. This recovery is based on pent up demand. People were hesitant earlier but are now going ahead with their real estate purchases. The market in France, UK, Italy and Germany has seen good growth rates. We are also seeing strong demand from smaller countries, especially the ones offering Citizens By Investment Programmes such as Portugal, Malta and Andorra.”
She explained the buying behaviour of international clients during COVID-19 in EMEIA region. “We have definitely seen the change in the behaviour. Most of our clients don’t own just one property. They own an entire portfolio of properties. The first change in the buyer behaviour that we have seen is a shift for countryside properties. Second big trend is a great deal of keeping out and sitting at home, working from home to upsize their primary residence based on their need to combine office and home space. The third trend, which wasn’t expected but we are seeing and is drastic — an unusual amount of significant sales. There are opportunistic buyers who are seeing this time as an opportunity to get a deal. There is a demand for country homes and bigger homes to upsize primary residences.”
Nicholas agreed with Natalie and told us about the changes and buying preferences of Indians due to Coronavirus. He said, “People are focussing more on lifestyle and affordability. They are leaning towards open spaces. We have seen a slight regression in interest in central London stock and a much higher level of pickup in outer London stock. There has been almost 50 per cent increase in four-bedroom houses outside central London. People don’t want to be confined to small spaces. They prefer functional spaces. A lot of people tag London with luxury but the important thing to understand is that we are a place-maker and not just a luxury home provider. So that’s where the trends are leaning at the moment.”
“The secondary homes are gradually becoming the primary ones,” said Akash.
Edward believes that challenging and dangerous times provide opportunities to all companies to grow and move ahead. So has the traditional style of auction adapted to the COVID era? He said, “This is a moment of great evolutionary change. When the meteor strikes, you either evolve or die. I think we have successfully evolved to the changing and challenging circumstances. Our traditional format is live sales but remote working and lockdown restrictions made it less of an option. Now we have successfully adapted to an online format and this has worked exceptionally well. It has been a seamless transition, beyond all expectations. Although live sales attract more bidders, the digital format is also creating huge opportunities. We are looking at up to 90 per cent of auctions going online. Some of the changes are new auction formats, jewellery and single-lot auctions. We now have a ‘buy now’ tab on our website, which was launched in early June. We have Sotheby’s gallery network, which features 24 galleries. Private sales are much more transparent and accessible now. So there have been many new innovations and exciting developments.”
Well, the future is the present.
