BLOGS
Are Office Spaces Transforming Into Luxury Apartments?
The COVID-19 pandemic has made a big difference in the world. In the so-called post-pandemic era that people all over the globe are transitioning into, life is no longer the same as it was a couple of years ago. This event surely plays a significant part in the history of mankind, way bigger than what people think.
One of the biggest changes that the pandemic brought upon the world is making remote work set-up the norm. More than two years after the strict lockdowns started in many nations, commercial real estate still has not fully recovered as office workers who fled to rural areas during the height of the health crisis have not all come back to work to this day. In fact, it is said that the pre-pandemic numbers may never return.
Vacancy Problems in Office Spaces
It was reported that in the United States alone, in the country’s metropolitan areas, the vacancies are about 4% higher than their pre-pandemic numbers. This crisis is no Fair Housing Act, but still creates concern overall. Before the health crisis started, there was a boom in the construction of office spaces in cities like Houston and Dallas—a quarter of which remain vacant a couple of years into the still ongoing pandemic.
This data is driving real estate professionals to transform multi-story detached buildings, multi-unit buildings, and even vacant land and undeveloped property into luxury apartment buildings. Some of the reasons for this change in the real estate business are:
The work-from-home or remote work setup has been around for many years, but the COVID-19 pandemic has accelerated and cemented the process for many businesses all over the globe. During the lockdowns, companies were forced to think of ways to adapt and continue their operations, which led them to provide employees an option to work in the safety of their own homes.
Several months of doing this set-up led many office workers to opt for permanent remote work. It was even reported that the majority of white-collared workers are likely to quit their jobs if they are asked to go back to onsite work by their employers once the pandemic is over.
Along with the health benefits and the increased ability to focus that come with working from home, there are other advantages that have led to the recent push for remote work or at least a hybrid schedule. For companies, there is a real estate cost savings associated with having fewer people in the office.
Additionally, there are often gains in productivity when people have more control over their work environment and schedule. For employees, there is an increased ability to create a work-life balance that works for them. All of these factors have led to many companies considering or making the permanent shift to remote work or at least introducing a hybrid schedule.
As long as employees follow the rules of this new arrangement, this change is likely to be good for both employees and employers.
As millions of office spaces remain unoccupied, business districts are looking for new ways to utilize the commercial buildings and produce income from them again. It may have been a bad couple of years for office spaces, but it was especially good for e-commerce businesses. In fact, many companies have shifted to exclusively selling their products online as it entails less cost from their end.
Instead of renting office space, companies are instead moving their operations into warehouses to cater to the unique needs of e-commerce businesses such as manufacturing and organizing deliveries. This is causing more office spaces to be left unoccupied as an increasing number of businesses no longer see a need for them at all.
Before the pandemic, this was already a popular practice in companies from developed Asian countries like Japan and Singapore, but the pandemic has brought this to the rest of the world as well. After all, online shopping is now a thing that is popular anywhere on the globe.
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Easier Office Conversions In Cities
In highly urbanized cities, there are public-private partnership systems in place to help in the conversion of an empty office building into a high-end residential real estate property. Vacant office spaces benefit no one, anyway. Tax revenues are dropping, and real estate brokerages are losing money as well. Looking for partners for conversion projects in metropolitan areas will be much easier than in areas with less population density.
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A Growing Demand for Luxury Apartments
Believe it or not, there is an increasing number of people who are considering purchasing luxury real estate in the Philippines during the pandemic. Even with the crisis in the real estate market, the state of luxury real estate in the country is considered an outlier.
This surprising data is being attributed to homeowners who realize the need to reside in bigger and better spaces for their families. There was also a particular demand for vacation homes or holiday homes—not just in the Philippines. It was evident in real estate transactions everywhere in the world. It seems that the affluent want to have their own personal property that they can easily access when they need a place to relax and unwind.
Suggested Read: The Demand for Luxury Homes Is On The Rise
Suggested Read: Rising Demand for Luxury Properties: Who’s Buying?
Why Luxury Apartments?
Aside from the demand that the luxury real estate industry surprisingly received during the pandemic, there are a number of reasons why office spaces are being transformed specifically into luxury apartments.
The real estate industry has been through a lot of changes in recent years, and the luxury sector is no exception. The market for luxury real estate has seen a significant rise in popularity over the past few years, despite the fact that it was one of the sectors that fared the best during the previous economic downturn.
Several things have led to this trend, such as the fact that wealthy people are moving around the world more and the rise of new wealth in emerging markets.
Lifestyle tastes have also changed among affluent consumers, which is the most significant aspect. Many people are looking for ways to lessen their stress levels and simplify their lives in today’s fast-paced environment. Since they do not want to deal with all the hassles of owning a typical home, they are more lured to luxury apartments.
In addition, luxury apartments offer a level of security and privacy that is simply not possible in a traditional home. For these reasons and more, luxury apartments have become one of the most sought-after real estate products on the market today.
As the world continues to get used to the new normal after the COVID-19 pandemic, many office workers find that they can now work from anywhere. Because of this, many people are leaving the city for places that are more suburban or rural. People who still live in the city, on the other hand, are looking for more high-end places to live.
Many office workers during the pre-pandemic era are no longer expected to come back and reside in the city, but those who are still in it are looking for better and more high-end residential properties to rent.
Renters are looking for buildings with luxury amenities and upgraded features, as well as reliable security and concierge services. As a result, real estate developers are scrambling to meet this demand by renovating existing properties and constructing new ones. Time will tell if this is a pattern that will stick around, but for now, it seems like people who live in cities are looking for ways to make their homes more comfortable and luxurious.
Many people have realized, because of the pandemic, how important it is to be in a place where they can have the privacy and quiet they need after a long, tiring day at work. Luxury apartments can give their residents both of these things.
Luxury apartments are also an excellent housing option for the family. In a time when there is still lingering anxiety to socialize in crowded spaces, especially with vulnerable children, it is better to live in an exclusive community with amenities that people are seeking to experience outside their single-family homes.
By renting or purchasing a luxury apartment, resort-like amenities can be easily accessed in the residents’ own neighborhood.
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More Income Opportunities
When it comes to real estate, luxury apartments offer some of the best opportunities for both owners and investors. Not only are these properties highly valuable, but they also come with a range of amenities that can be rented out to non-residents. Banquet halls, for example, are often used for weddings and other celebrations, and can generate significant income for the owners.
In addition, luxury apartments typically have a higher resale value than other types of property, making them an excellent investment. For all these reasons, luxury apartments are an increasingly popular option for both buyers and sellers in the real estate market.
Luxury houses are becoming more popular in the Philippines as a source of income. With the current real estate market, it is easier to sell or rent a luxury house than an office space. Also, there are more people looking for luxury houses than there are office spaces. The flexibility of a luxury home makes it a better investment than an office space.
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It Attracts More Investors
With the financial crisis that the world has experienced because of the pandemic, even the once ever-stable real estate investments have been pretty much on the rocks. Overall, there was a huge drop in demand for new real estate properties, which made the sales prices go down. This is not good news for homeowners, but can be an opportunity for new investors.
Real estate has always been a solid investment, but in recent years it has become even more popular as a way to build wealth. One reason for this is that real estate is relatively immune to the ups and downs of the stock market. Real estate can also give you a steady stream of income through rent or appreciation.
However, the commercial real estate market has been struggling in recent years, which has led many investors to look for other opportunities. Luxury apartments have emerged as the top option for real estate investors looking for a safe and profitable investment. The demand for luxury apartments continues to grow, while the supply remains relatively static. This imbalance is expected to drive up prices and lead to healthy returns for investors.
Even though there are risks with any real estate investment, luxury apartments are likely to do well in the housing market for the foreseeable future. This makes them a good choice for turning empty commercial buildings into homes.
Live in Your Own Luxury Residential Real Estate!
The Philippines is not new to the world of luxury real estate. In fact, even before the pandemic, there were award-winning developers in the country that have been internationally recognized for their excellent and world-class quality.
One of the top luxury real estate developer in the Philippines, Brittany Corporation, is offering some of the best luxury for sale in the country. Their luxury-themed developments at Crosswinds Tagaytay, Portofino Alabang, and Brittany Santa Rosa’s Georgia Club have won international awards for being some of the best luxury houses in the Philippines that the affluent can easily check out through Brittany’s website.
Real Property Investment with Brittany
Brittany Corporation is the best spot to find the home of your dreams. Brittany has been in the business for over 30 years, so she has the knowledge and skills to help you find the right property for your needs. Whether you want a vacation home, a home for yourself, or a property to use as an investment, Brittany has what you need.
Brittany has a large number of properties to choose from, as well as competitive prices and financing options to make sure you get the most for your money. So, if you are looking for a place to live, you should check out Brittany Corporation. You will not be let down.
Live each day luxuriously with Brittany! Follow their social media links for the latest updates on their leading luxury-themed communities situated in prime locations in the country.
