With unprecedented demand and record low inventory being the theme of the current global real estate climate, the question everyone wants to know: is relief on the way? The Agency Development Group represents a multi-billion dollar portfolio of new construction properties all over the world, from urban developments and mixed-use offerings to luxury resort residences and estate communities. The team, led by Managing Partner Mike Leipart, advises developers through the rapidly shifting needs, wants and demographics of their target buyers, which shifted at a much quicker pace than usual over the last year. They weighed in on the market of 2021 and what to expect in 2022 in The Agency’s newly released Red Paper 2021 Annual Market Report.
“2021 was the year to play catch-up for developers and home builders across the marketplace. Demand pent up fast and furiously during the pandemic-induced, nine-month pause in construction,” Mike explained. “The year brought little relief as developers faced rising construction costs, labor shortages and supply chain lags. Developers had to shift quickly, and those with available inventory won the day,” he added.
“Several trends emerged as buyers sought more turnkey, concierge service offerings, both for their primary and vacation homes,” said Managing Director Leo Medeiros, the newest addition to The Agency Development Group executive team. Joining The Agency from Compass and based on the West Coast, Leo has led sales for some of the most prominent and influential new real estate developments in the United States, including 181 Fremont in San Francisco.
“Hotel brands are increasingly stepping into the residential market, building highly serviced homes without an attached hotel component,” Leo added. Among the other trends reported in The Red Paper by the development team was a buyer demand for onsite dining, leading restaurant brands to wade into the residential business.
After years of discussion, tech and energy efficient integrations came to life in new residential projects. Buyers cared deeply about the health of their living space, wanting optimal airflow and resource efficiency. Another trend here to stay: Buyers are more informed and hyper-connected.
Savvy developers responded by creating apps for their buildings so owners could unlock the door for their housekeeper, call the valet and schedule food delivery all at the touch of a button. As for the homes themselves, buyers sought larger floor plans, an elevated level of finishes and expanded outdoor living spaces.
Still untethered from their places of employment, buyers could explore new locations and split their time, spending summer in the mountains and winter by the beach. With multiple properties, they craved less upkeep—another reason why turnkey offerings were the star of the show. Investment properties also made sense, as the shortage in housing sent rent prices in the most desirable markets soaring.
As for the year ahead, relief in construction lags and supply chain delays is hoped for and anticipated, while prices may not budge much. The new development sector will continue to evolve out of pandemic norms, seeing a return in demand for townhomes, condos and apartments.
“Each regional housing market is slightly different, with the local employment, job growth and housing stock as factors,” Leo explained. “Overall, most markets will continue to show strength with some slight tapering based on the Fed’s interest rate increases in 2022. Interesting housing markets to watch for growth in 2022 include Bellevue, Washington, Austin, Texas and Las Vegas, Nevada.”
Among new product coming to high-demand markets such as Los Angeles, Las Vegas and the Mexican Caribbean are three properties represented by The Agency Development Group: Mandarin Oriental Residences Beverly Hills, Ascaya and Mayakoba.
Mandarin Oriental Residences Beverly Hills
The Mandarin Oriental Residences is one of the first new condominium buildings to be constructed in Beverly Hills in over a decade. The brand’s first stand-alone residential concept in the U.S. features 54 residences at 9200 Wilshire Boulevard and offers “the legendary services of a great hotel with none of the guests.” Owners will enjoy concierge services and the only private owners’ rooftop pool, lounge, and bar in Beverly Hills. World-renowned, Michelin-starred Chef Daniel Boulud will make his West Coast debut at the property, operating the rooftop bar, in-home dining and two restaurants at the base of the property. Luxury design studio 1508 London oversaw the residential design and will offer curated turnkey furniture packages. Pre-selling has begun with the first closings expected in 2022.
Situated in the mountains above the Las Vegas Valley, Ascaya features a collection of over 300 luxury homesites with custom homes and sweeping views of the Strip. Offering absolute privacy, the residential community boasts contemporary design masterpieces and world-class lifestyle amenities. Henderson, Nevada, where Ascaya is located, has recently seen an influx of buyers attracted to its thriving economy, outdoor recreation, fantastic weather and stunning landscapes, located within close reach of nationally recognized schools and entertainment. In 2021, total sales reached $94.7M for the year, more than triple the year prior and well above the $60.46M sold within the exclusive community between 2014 and 2020.
Mayakoba is a 620-acre, gated resort community located on the pristine shores of Riviera Maya, Mexico. Home to white-sand Caribbean beaches, pristine lagoons, rolling green fairways and leafy mangroves, Mayakoba features two hotel-branded residential offerings: Fairmont Residences and Rosewood Residences. Owners enjoy world-class amenities and services, including beach clubs, award-winning spas, kids’ clubs, a championship PGA golf course, dive center, nature trails and over 25 dining options, all located just moments from home. In 2021, nearly $30M of real estate was sold within the gates, more than in the six years prior, a testament to the appeal of the highly serviced, amenity-rich lifestyle that hotel-branded residences can offer.
