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by Jacob Blackett
For a long time, real estate investment has been considered one of the safest investment options. As most industries continue to be on their knees due to the Coronavirus pandemic, the real estate industry has continued growing stronger. Investors have continued to be attentive to investment options as they expand their assets.
Investor appetite and demand is barely being met. This presents an opportunity for agencies and professionals to embrace change in the real estate scene. People are making tougher investment criteria as they also prefer waiting on a deal instead of making bad decisions.
So, what is the future of real estate investment? Let’s look at some of the trends in the scene.
1. Technological Trends
Technological innovations are set to disrupt the real estate industry soon. So many industries are going online, and so are real estate agencies. Realtors and investors are striving not to be left behind in the revolution. We’re also seeing many software engineers and developers coming up with tech-based solutions for the real estate industry.
What technological trends should we expect to see?
- Blockchain– Basically, blockchain is a decentralized ledger tracked by many entities and streamlines the processes involved during transactions. Blockchain technology helps eliminate the middleman and improve security. Real estate investment has always been a numbers game. The amount of data involved is also copious. While many realtors have been a bit hesitant to embrace the technology, some are already using it to simplify the buying and selling of property. Expect to hear more of this trend as the Asian real estate markets are already enjoying its benefits.
- Artificial Intelligence (AI)– As AI continues to penetrate every industry, it’s only prudent to explore what it can do for realtors. AI is changing the real estate sector by allowing realtors to apply data analytics and stand out from their competitors. Firstly, AI collects and analyzes data from real estate market trends. This data is then used to predict future market value. Secondly, the data is used for comprehensive property analysis. Clients love it when they’re provided with accurate and in-depth information about a property, such as local public facilities, transport networks, and entertainment joints. Finally, realtors can use AI for marketing and lead generation.
- Cloud-based Applications– As the real estate industry handles a lot of data daily, cloud technology could be one of its most essential tools. Cloud computing refers to the delivery of services to users over the internet. It offers various advantages, including accessibility, efficiency, and security. The real estate industry is warming up to the technology as it allows property buyers and sellers to access any information online at any time.
The advantages of technology in the real estate sector are beyond doubt. You should expect to see trailblazing trends in processes, such as how investors find an investment deal, how the buyer meets the seller, and even how the transaction takes place.
2. Migration to The Suburbs
2020 has been such an eventful year. The Coronavirus pandemic has greatly affected livelihoods and day-to-day operations. Think about it; before the pandemic, you’d freely move around with little or no worries. A majority of the employees had no problem commuting to their offices daily.
When the pandemic struck, however, people had to minimize movement in compliance with health regulations. Companies also started embracing working from home.
What does this mean for the real estate industry? Many people are moving away from the cities as they start embracing changes in their lives. The suburbs have, for a long time, been associated with the older generation. Expect this to start changing.
Many people will start purchasing and renting properties in smaller cities and towns. They want to stay closer to their families as they work from the comfort of their homes. Besides, with rising health challenges, people want to stay away from the pollution in cities.
3. Demographic Shifts
It is estimated that in three decades, the global percentage of older adults over 60 years will exceed that of young ones below 15. With a growing elderly population, the real estate sector will change the design and development of residential and commercial properties.
This means that new sectors will emerge to gain popularity with an aging population. For example, the demand for nursing homes will rise. This means that healthcare and retirement will be crucial sub-sectors in the future. Newly designed properties will most likely feature green spaces with additional seating for the aged.
On the other hand, millennials value flexibility and mobility. Adults younger than 30 years want to be able to move wherever their work takes them. Younger people prefer renting to owning a home. Real estate firms will start allowing their tenants to move to some of their properties in different locations without charging any penalties.
Also, we can’t ignore the growing global population that will push the demand for affordable housing higher. A larger population also means a higher demand for food. The agriculture sub-sector will experience more investor interest.
Key Takeaways
The real estate industry has remained stable throughout the pandemic and continues to grow. This has led to an imbalance in terms of supply and demand for real estate. The future of real estate is facing changes in technology trends, demographic shifts, and migration to the suburbs. Fortunately, the real estate investment management platform SyndicationPro has tools you can use for success in the new real estate era.
Jacob Blackett – Originally from Reno, Nevada, Jacob began his real estate career in 2010 as a sophomore at the University of Nevada, Reno, when he bought and sold his first two residential “fix and flip” properties in Southern California. Since he made the move to the Midwest in 2012, Jacob has placed over $40 million into income-producing real estate and In June of 2018, he founded SyndicationPro with Ameet Mehta on the basis of providing better technology solutions for fellow syndicators. Outside of business, Jacob enjoys staying active, volunteering as a Big Brother, and education as a hobby.
