Lending
How is luxury real-estate adapting to a COVID-19 world?

The property industry and J.P Morgan are adapting thanks to a huge acceleration in digital transformation & innovation.
With the COVID-19 outbreak, ‘home’ has taken on a new meaning.
It’s no longer just the place you spend your evenings and weekends; it’s your workspace, your cafe, your gym and your entertainment zone.
And it’s not just the way our homes are used that’s changing - how they’re purchased is evolving, too.
The property industry and J.P. Morgan are adapting to this challenging environment, thanks to a huge acceleration in digital transformation and innovation.
Virtual tours and drone footage are a few examples of the innovations that can help you with your decision making.
At a time when social contact and travel is impractical, these technological advances can help buyers take advantage of the low rates environment - whether it’s to buy second homes or refinance existing arrangements in your home country or abroad.
And with most prime high-value locations expected to weather the pandemic, property remains a compelling investment for you and your family.
J.P. Morgan Private Bank has the capability to finance high-value residential real estate in certain jurisdictions and the ability to support you with the associated wealth planning aspects.
Whether it’s your primary home or your home away from home, property is more than an emotional investment - it’s a financial asset that can grow and protect your wealth.
At J.P. Morgan Private Bank, we understand the safety and security you get from stable and dependable investments, especially in uncertain times. And property has proven to be a reliable, safe-haven investment for our clients over the long term.
In the last decade, the housing market has become less responsive to fluctuations in gross domestic product and employment.
Part of this is due to recent changes in government policy.
Low interest rates and easier access to capital have supported house prices in the UK, French and Swiss housing markets - and this has made the housing market one of the least volatile and best performing asset classes for investors.
And because it’s such a consistent, reliable performer, you get peace of mind that your home is more than a financial asset - it’s a dependable investment that may provide for your family for years to come.
J.P. Morgan Private Bank has the capability to finance high-value residential real estate in certain jurisdictions and the ability to support you with the associated wealth planning aspects.
There is no place like home. J.P. Morgan
Depending on how their governments responded to the pandemic, some countries look more attractive than others. For example, Portugal restricted travel to second homes, while France didn’t. With the pro-investment backdrop in France and 90% of buyers and sellers looking to restart their house moves, the environment should support prices over the medium term.
Ahead of COVID-19 there was increased activity in the South of France. Enquiries from Belgian, Swiss and German buyers have been noted, as well as Asia-based expats looking for a holiday home in the region.
Prices in prime central London have already been under pressure for the past five years due to the government policy changes described above. Arguably there is less of a buffer for prices to fall when the lockdown is lifted and other restrictions loosened. Although international travel restrictions are likely to dampen activity in the near term, prices are expected to rise by 20% over a five-year period.
The Swiss market has benefited from a flight to safety during previous economic downturns, which may explain the recent increase in the number of potential buyers enquiring about property in Geneva. The country offers a secure economy for investors and a safe environment for families, while the strength of the Swiss franc continues to play a part.
Over the long term, real estate has outperformed almost all other asset classes, and delivered returns that are much less volatile than the stock market. This trend is expected to continue, as home buyers and investors ensure their asset allocation is diversified (figure 5).
Cornerstones of value – such as excellent education systems, connectivity, transport hubs and stable governments – should continue to underpin value in prime locations, such as those in France, Switzerland and the UK.
Investment will be another key driver of value over the longer term. The Grand Paris Project, a $26 billion investment in transport networks in and around Paris, as well as the 2024 Olympics, are expected to support property prices in the city.
Similarly, investment in infrastructure in mountain resorts, particularly in Switzerland, has led to outperformance over the past few years and is expected to continue.
Like many other areas of the economy, the property market is adapting to the lockdown. There’s already been an acceleration of the trend to streamline the way we buy, sell and advise on transactions by adopting new technologies. The latest software enables potential buyers to take virtual tours – even using drones – while vendors are being encouraged to take photos and videos of their properties.
Over the longer term, the way we use property is likely to change as a result of the pandemic. With air travel unlikely to be back to normal until 2021, homes that are easy to reach by road or rail look more attractive. European cities with lots of parks and open spaces, as well as those that offer quick access to the countryside, have particular appeal.
The lockdown has encouraged many of us to reassess our priorities. Families that have come together under one roof have rediscovered how important it is to have a safe place to sit out the pandemic. There’s already been increased interest in properties in rural areas with more outside space, which provide the perfect escape for large families.
In the commercial space, there are questions about the future of the office now that so many of us are working from home. Sustainable investing is also likely to be an increasingly popular theme as businesses look to rent or buy the most environmentally friendly buildings they can find.
The size and shape of the commercial real estate market continues to change. The transition away from the three traditional sectors of office, retail and industrial to alternative properties is likely to gather pace. This shift is creating many other opportunities for investors – from warehouses for online sellers to student accommodation and a wide range of buildings for the healthcare sector.
Global capital flows into residential and commercial property have been significant over the past four to five years. However, in the short term, travel restrictions are likely to encourage investors to look for opportunities in their domestic markets rather than overseas. Those with cash ready to deploy will be in the best position to react quickly as opportunities arise.
Real estate offers a sense of comfort when looking to preserve and grow wealth. Whether buying a second home, an investment property or giving your children a head start in life, there’s a lot to think about – particularly when you haven’t grown up in the country where you are purchasing. Every jurisdiction has its own regulations and taxes, depending on how you intend to use the property and eventually either sell or pass it on.
It’s important to consider your financial goals and explore the various options with your professional advisers so you can structure any purchase in the best possible way. At J.P. Morgan, we’re finding solutions to help you navigate today’s challenging environment, ensuring you are driving efficiency from both sides of your balance sheet as well as taking advantage of low interest rates as we have the capability to finance high-value residential real estate in certain jurisdictions.
Visit us online at JPMorgan.com/high-value-mortgages
Learn more about becoming a J.P. Morgan Private Bank client.
Please tell us about yourself, and our team will contact you.
To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products.
JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. JPMCB and JPMS are affiliated companies under the control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.
INVESTMENT PRODUCTS ARE: • NOT FDIC INSURED • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC.
Not a commitment to lend. All extensions of credit are subject to credit approval.