Houses, apartments, and other properties rely on real estate agents to showcase them for potential buyers. Luxury and everyday residential real estate both have the same goal of housing people in the market to buy a home, but they are very different with what they advertise and provide.

Space

Space is a huge difference between the two with luxury providing more space and more amenities than residential typically. The rooms tend to be bigger in not only space, but height as well.

Prices

Everyday residential tends to be cheaper in price than luxury with what it provides. This leads to having more investors and buyers as the competition is higher as opposed to luxury with less investors but more exclusive clientele.

Location

Desirable locations tend to be in less populated areas, accompanied by more upscale living standards and certain attractions or businesses being close by. Residential is more flexible with locations as they can show up anywhere in suburban or urban areas.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Covid has affected the economy in ways that no one could have predicted. The way things work has changed, especially in real estate. The market was hit hard in some places but turned out to be more resilient in others. Here’s how Covid has affected both residential and commercial real estate:

Commercial

Commercial selling has been found to be more versatile than expected. During the beginning of the pandemic, listings went down as most people stayed home, but as things started to open up again, the need for social interaction and being on-site grew. The demand for commercial listings increased as a result, with investors largely not dropping out at all, but particular things buyers and investors were looking for in those places changed. Now they are looking for listings that can accommodate social distancing, air circulation, and other pandemic musts. In addition, listings for specific needs like storage, pharmacies, and other stores have gone up. The buyer’s demands have changed and so has commercial real estate with it.

Residential

Residential real estate has been greatly affected by the pandemic in comparison. During 2020, the demand for residential listings plummeted and no one was buying properties. This created a pause in the market as no one wanted to spend anything big as the future was still uncertain. However, 2021 has seen a return to more demand from potential buyers, and unfortunately, supply could not keep up with demand. There is more competition in the market than before so prices have increased significantly. Since 2020 saw prices on houses freeze, 2021 now has increased prices coming back in full swing. This issue along with fewer listings has created a highly competitive market in real estate and one can only hope that supply can increase from here.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.