As the world continues to change, the real estate industry and investors are riding on new trends. We have picked nine of the most important and exciting trends to follow when investing in real estate.
Abundance of Capital Seeking Investment Opportunities
Quantitative easing measures and low-interest rate environments have resulted in a substantial influx of capital awaiting investment prospects. Investors are exercising prudence, actively seeking alternatives to previously favoured asset classes, such as retail centres. Instead, their focus has shifted towards burgeoning sectors like last-mile logistics, data centres, and residential real estate.
Suburban and Secondary-City Renaissance
Evolving lifestyle expectations and the widespread adoption of remote work have catalysed an exodus from densely populated urban centres. Individuals and businesses are embracing the allure of suburban and secondary-city living, drawn by the promise of increased space, affordable accommodations, and an enhanced quality of life.
Housing Supply Deficit
A global scarcity of housing inventory has precipitated a seller’s market characterised by soaring home prices, fierce bidding wars, and sellers commanding substantial negotiating leverage. Major and minor real estate markets are experiencing this supply-demand imbalance, presenting challenges and opportunities for prudent investors.
K-shaped Recovery
The real estate landscape is witnessing a polarised recovery trajectory akin to the shape of the letter “K.” While hospitality and retail sectors grapple with declining values and rents, specialised alternative assets, such as cell towers, data centres, self-storage facilities, and medical care facilities, are experiencing a meteoric rise. Disruptive technologies, including autonomous vehicles and last-mile delivery innovations, are poised to reshape the industry further.
Adaptive Reuse
Adaptive reuse, the process of converting and redeveloping underutilised real estate assets into more relevant and profitable ventures, has emerged as a critical trend. Properties previously dedicated to hospitality, entertainment, office spaces, and retail, which bore the brunt of the pandemic’s impact, are prime candidates for adaptive reuse. Transforming an obsolete hotel into affordable housing or repurposing a retail building into an industrial distribution centre exemplifies the potential for value creation through this strategy.
Environmentally-Responsible Investing
Environmental concerns, including floods, droughts, heat waves, rising sea levels, and legislative efforts focused on energy efficiency and material reuse, drive the mainstream adoption of environmentally responsible real estate developments. Institutional investors, such as real estate funds, pension funds, and investment managers, spearhead this shift, mandating sustainability measures across all stages of the property lifecycle, from acquisitions to leasing and asset management.
Ghost Kitchens
The surge in online food ordering and digitised delivery services has given rise to ghost kitchens – professional kitchens dedicated solely to preparing delivery-only meals. Devoid of dining spaces, these facilities enable restaurateurs to affordably test new concepts before committing to substantial build-outs and long-term leases.
Senior Housing
Demographic projections indicate that the global population aged 60 years and older will double between 2000 and 2050, escalating from 11% to 22%. This seismic shift necessitates the development of purposefully designed senior living spaces that seamlessly integrate healthcare and independent living solutions.
Coliving
Coliving developments have emerged as a viable solution to the housing crisis afflicting major urban centres. These communities foster a close-knit living environment while offering affordable housing formats for those grappling with saturated rental markets.
Join us to embark on your real estate investment journey with Crowdestate, a trusted partner in navigating the dynamic real estate landscape. We provide you with access to meticulously vetted projects, empowering you to diversify your portfolio and capitalise on the trends reshaping the industry.
