This report is available to subscribers only Inman Intelis the data and research arm of Inman, providing insights and market intelligence into the residential real estate and proptech businesses. Subscribe now.
According to Intel’s analysis of luxury market forecasts, greater use of artificial intelligence and the movement toward “quiet luxury” are major trends that will continue to penetrate upper-class residences in 2024.
The emergence of ChatGPT and other high-tech language tools over the past year or so has sparked new expectations for the power of technology.Some are already claiming that emerging technologies will change the current state of affairs in the same way that the Internet once did, says Coldwell Banker Global Luxury Initiatives “Trend Report” famous. But real estate agents now have the opportunity to learn it early and master it, making their lives easier.
Luxury real estate is poised for a strong year amid an increasingly stable U.S. economy, a recovery in Europe and an influx of Asian capital into global high-end markets. Christie’s International Real Estate 2024 Global Luxury Real Estate Forecast reported. Christie’s International Real Estate said that with trends such as the rise of upscale college towns and the arrival of Gen Z homebuyers, the demand for “quiet luxury” will increase over time, which is something agents will face.
Reports from both companies showed increasing optimism about the luxury market next year.
Provided by Coldwell Banker Global Luxury
Michael Alteno | Coldwell Banker Global Luxury Products
“What’s really striking is the optimism we’re seeing in the market right now,” Michael Altneu, vice president of Coldwell Banker Global Luxury, told Intel.
“We conducted a global luxury consumer survey and more consumers thought the market would be better or flat than worse (in 2024). We see that in the data points as well. So I think we The best market you can have is optimism about the year ahead, and data that continues to support that optimism – and then obviously doing consumer surveys to share what we’re seeing in terms of data, that’s a very exciting touchpoints.”
artificial intelligence revolution
Image credit: Jonathan Kemper/Unsplash
In a trend report, Coldwell Banker asked ChatGPT how generative AI will change the future of real estate. The chatbot listed the following areas for improvement: customer support, market analysis, virtual property tours, automated document processing, personalized property recommendations, language translation and predictive analytics.
“A lot of agents are definitely embracing this technology,” Alteno said in a statement. “They’re embracing that convenience and how they can incorporate it into their business. But I think ultimately the bigger picture that we recognize is that human connection is what matters most, and it can’t replace that interaction. , especially on the luxury side. I do think where artificial intelligence is going to be incredible is helping with the agent-to-seller or agent-to-buyer relationship and potentially streamlining the process, allowing for additional data points to relate to Consumers are relevant and may help with search. So I do think we’ll see more informed consumers.”
Provided by Coldwell Banker Global Luxury
With the potential of artificial intelligence to enable more accurate property valuations, personalized marketing and predictive analytics, analysts at Coldwell Banker Global Luxury say home sellers will benefit from artificial intelligence tools in the coming years that could help them be more Seize the market sales timing or find the right marketing strategy. The report states.
Mala Sander of the Corcoran Group told Intel that she has used ChatGPT to brainstorm ideas for everything from dinner menus to listing descriptions.
Malasand | The Cochrane Group
“It’s so fun — it’s like Google, only better,” Sander said. “Sometimes you sit there, staring at the screen, and you get writer’s block when it comes to a particular property and its benefits, and you just want to express it eloquently. You can (tell ChatGPT), I have this Property, I want to highlight these 5 or 10 or as many features of this property, please write me a description. Of course, you will never just put a description into a repository, but what you can do is take it a step further Tweak it and take it to another level.”
If Sander is creating a social media post that she wants to cater to a specific demographic (like Millennials or hedge funders), she’ll also add that to her ChatGPT prompts and see what the tool brings to the table.
Additionally, the potential of using augmented reality technology to showcase a home’s potential through virtual property tours or enhanced listing photos may help homebuyers see a property in a new light.
Provided by Coldwell Banker Global Luxury
Of course, there are issues with any new technology, and agents need to learn how to use artificial intelligence in a respectful, responsible manner, the Coldwell Banker report notes.
Camilla Linkoski
Camila Linkowksi of Platinum Real Estate Professionals in Las Vegas told Intel that she has had issues when she discovered that listings used enhanced photos without explicitly disclosing that they were not original to the property.
“Obviously, (agents) want people to come into their listings, and they’re using AI-generated photos and photos of homes they already have, so they’re kind of doing a bait-and-switch,” Linkowski said. “I’ve had clients where we’ve gone to houses that looked nothing like the ones in the photos, and I know some agents will change the colors and things like that, but it’s like a catfishing of a home.”
Likewise, factors such as data accuracy and privacy concerns in the still-evolving technology remain issues that agents will need to verify themselves when using artificial intelligence, the trend report said.
“Quiet luxury” takes center stage
Image credit: Jason Wang/Unsplash
Christie’s International Real Estate’s 2024 Luxury Home Forecast report says the era of lavish lavish spending is over, as high net worth individuals increasingly gravitate towards more understated forms of luxury. Entering the “quiet luxury” trend, the wealthy, especially in the United States, now aim for understated elegance in all luxuries, from real estate to fashion.
Christie’s International Real Estate report cites scenes from HBO series’ final season succession As a prime example of quiet luxury. In one episode, Tom Wambsgan scolded Greg’s cousin for using a “ridiculously large” Burberry handbag at Logan Roy’s birthday party. This was apparently a “huge faux pas” at a gathering of the city’s elite, where quiet luxury (bespoke styles with discrete or invisible brand logos) is expected.
Translating to real estate, quiet luxury may mean more natural materials and muted tones in interior design, and less sprawling estates. This is also reflected in more private, exclusive estates and luxury residences.
Aaron Kilman | AKG | Christie’s International Real Estate
In Los Angeles, quiet luxury leads buyers to choose organic materials and less ornate finishes, such as honed marble over shiny marble, said Aaron Kirman of Christie’s International Real Estate AKG. There is also a smaller footprint.
“A few years ago, wealthy people wanted to own 50,000-square-foot homes,” Coleman said in the company’s report. “Now they live comfortably in a 12,000-square-foot house.”
Cochran’s Sander said the trend is emerging in the Hamptons as another way to embrace the area’s environment.
“We live in the Hamptons, which is a natural environment – we see sand and all that,” Sander said. “I find people are more interested in the organic (quality) of their surroundings, their homes.”
David Pictures | David Pictures Christie’s International Real Estate
She added that this trend is reflected in homeowners who want their landscaping to include more native plants, which is more environmentally friendly than installing pristine lawns. Hamptons homeowners are also embracing more earthy and understated trends in their home decor, such as concrete or leather marble.
The report notes that quiet luxury, while a new take on luxury living in the United States and the UAE, has been at the forefront of culture in France and many other parts of Europe, from which Americans may draw inspiration. David Beard of Christie’s International Real Estate said that for decades, people in seaside resorts on France’s Atlantic coast have embraced the motto “live happily, live in privacy” and embody a spirit of quiet luxury.
Whether agencies are gearing up for 2024 by improving their use of ChatGPT or by helping clients find designers who understand the value of understated luxury, all agencies should prepare for a year when the luxury market looks brighter. Globally, Christie’s International Real Estate affiliates in the Americas, Europe, Middle East, Africa and Asia Pacific expect inventory shortages to ease while demand remains stable.
Courtesy of Christie’s International Real Estate
McGolden | Christie’s International Real Estate
“The stability of the U.S. economy, early signs of recovery in Europe, and the influence of Asian funds on the global high-end real estate market are all positive signs for the outlook for global luxury real estate in 2024.” Christie’s International Real Estate said in a statement.
“Against this backdrop, a number of interesting demographic, lifestyle and location trends are taking shape, and the (Global Luxury Real Estate Forecast 2024) report aims to help luxury buyers and sellers discover and understand these trends so that they can confidently Market players this year and beyond.”
Email Lillian Dixon
