Developing trends in the real estate market in 2022
The real estate market has undergone a very dynamic and lucrative developments in recent years. Despite the turbulence and unpredictability of the last two years, the real estate market has remained relatively stable. From rising rent prices to the global pandemic, to how people chose to invest their money, there are many factors that impact the development of the market. From big to small trends, there are many factors that will continue to influence the market both in the short and long term.
In 2022, there will continue to be developments due to new-work trends as more and more people will continue working with a hybrid work model, likely long into the future. Furthermore, in 2022 the continued increased use of renewable energy along with corresponding government regulations impacts not only energy and home prices, but also how homes are built. Additionally, changes in how people invest, and purchase property will also have sizable effects. And let’s not forget the continued impact that digitalization and the general development of technology will continue to alter the real estate industry. From more technology and automatization within our homes to an increased prevalence of the real estate industry online, this will continue to affect the real estate market for years to come.
Whether you are a homeowner or a tenant, monitoring the real estate market forecast can help you be prepared for any upcoming changes and learn about exciting developments. Here we breakdown 10 trends in the real estate market to look out for in 2022.
1 Home office
As we move into the third year of the pandemic, many of us have become accustomed to working from home either full time or as part of a flexible working model. This was a highly searched keyword in 2021 with an average of 49,500 per month. The breakout point was in January when new ordnances on home office requirements were put in place. As people working from home continues with no end in sight, it has implications for real estate as well. Many people now want larger living spaces in order to have a separate home office. This is also leading to people moving out of cities to have more space.
2 Smart Home
As technology continues to advance, more people want to implement smart home solutions in their homes. Searches for Smart Home averaged around 27,100 per month and remained fairly consistent throughout the year. The popularity of Smart Home solutions is one reason Neubaus are well-liked, as they can be built integrated with these technological solutions. However, some Smart Home solutions can also be implemented in an Altbau. Implementing these technological solutions not only can help facilitate everyday life, but can also help save you money on your heating and electric bills. There continues to be an upward trend of automating aspects of one’s home.
3 Sustainable living
Living more sustainably is something many of us are trying to achieve in 2022. From making our homes more sustainable with the products we use to reducing our energy consumption and using more renewable energy, there is a lot interest in becoming more sustainable. In real estate, there’s an increasing emphasis being placed on green building to be more ecologically responsible in the construction of new homes. This is a topic that will only gain momentum in 2022 as it is an important development in society, not just in the real estate industry.
4 Dream vacation home
As many of us have had to put off travelling for the past two years, the idea of having a dream vacation home grows more appealing. There was an average monthly search rate of 135,000 and the peak was during the summer months. The highest number of searches per captia was in Northwestern Germany. Additionally, there was also an 83% increase in this search term from 2020. This could be due to the pent-up demand for a vacation along with the appeal of having your own place while vacationing increasing as it may be viewed as safer now since there can be less contact with others.
5 Renewable energy
Renewable energy, specifically renewable energy to power homes, is a topic that will continue to be of high interest in 2022. An increasing number of people are focusing on the use of renewable energies and would like to implement this in their own homes. This is being promoted by government subsidy programs, like the KfW subsidy, which helps support 2022 sustainability goals. In 2021 there was an average search volume of 27,100 per month and a 22% increase from the year before. This topic was of high interest throughout Germany, but especially high in Bremen and Berlin. With the energy transition, interest in green energy will likely increase for tenants and property owners as the rules on energy subsidies is changing this year.
6 Investing in cryptocurrencies
Investing in cryptocurrencies is a topic that took off in 2021 and will continue to be of high relevance in 2022. This topic was especially popular in Hamburg, which was the area with the highest per captia search volume. As cryptocurrencies increase in popularity, the ways in which the currencies can be spent also increase. In regards to real estate, cryptocurrencies can now be used to invest in real estate property. For example, with EverEstate’s project X-UP, the apartment can be paid for entirely in cryptocurrency. This topic is one that will likely only become more prevalent in 2022.
7 Home insurance
Home insurance was a topic that received an average search volume of 60,500 searches per month, but had a breakout point this summer when there was severe flooding in Western Germany. Not only is home insurance important for both renters and property owners to have for natural disasters but it is also important to insure both the building and the contents of your home. Find out more with our breakdown on what you need to know about home insurances. While not considered an exciting topic, it is a topic that will remain relevant in 2022 as both owners and tenants want to protect their homes.
8 Rental break
The rental break (Mietpreisbremse) was a big topic in 2021. The breakout point for this topic was in April when Berlin’s rent cap was overturned. Unsurprisingly, the area with the highest search volume for this term was Berlin. The overturn of the rental cap was an important topic in real estate last year as this had far-reaching implications for many people living and owing property in Berlin. In 2022, this will continue to be a topic of interest as it was just announced this year that the Mietpreisbremse will be extended until 2029, which sets an upper limit on rent above local comparable rents.
9 How to become a real estate agent
Another topic that will be of interest in 2022, is that of becoming a real estate agent. More people are interested in the ability to work on their own schedule, and this is a job that allows for this, along with the potential for high earnings. This topic had the highest search volume in Nordrhein-Westphalia and hit its peak in term of searches in December 2021. As people continue to look for jobs that allow for greater flexibility in terms of remote working and customizing one’s hours, this topic will remain relevant in 2022.
10 Real estate as a capital investment
As people look for ways to invest their money, investing in real estate as a capital investment increases in relevance. In Germany, this topic was searched the most per capital in Bäden-Württemberg and other regions in Western Germany. This topic is also becoming more relevant in regards to foreign investors, as the number of non-Germans investing in real estate in Germany continues to increase. This is a topic of interest as this has implications for housing and rent prices, especially in already tight real estate markets like Berlin.
The real estate market is going to face new trends in 2022, as this industry continues to dynamically change in an unprecedented market. From exciting new trends like purchasing real estate with crypto currency and the continued increase in usage of renewable energy to power homes, to changes in the market due to regulations such as the Mietpreisbremse. As the world slowly moves to a new normal, the market keeps adapting. The real estate market forecast for 2022 appears strong as the market continues to remain stable through these unpredictable times.
It is important to monitor real estate trends so you can take advantage of what 2022 has to offer. Through this monitoring of the real estate market forecast, it allows you to be prepared for upcoming changes that could have implications if you own property or are a tenant, as costs may change due to regulations. It also allows you to take advantage of trends to make your home more advanced and learn about ways to better invest your money in the real estate market. Furthermore, it could introduce you to ideas and concepts you hadn’t yet considered, but could be worth investing in to protect your home and investments. It can even help you understand how seemingly unrelated events to the real estate industry will impact the market now and in the future.
Keep up to date with all real estate trends with our blog where we discuss all the big and small developments in the real estate industry.
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