Real estate market was, is, and it will always be a very lucrative playing field for players who are keen on making their fortune over the course of the night, but, unfortunately, also the one in which winners and sinners are just a few misjudged steps away. Given the fact, however, that real estate market tends to go through a lot of quick changes, many of which are based on current social and economic developments, the chances of making those fatal few mistakes can be reduced only by carefully watching the horizon. Let us look then what are the trends that will shape the real estate market in the near future.
Beauty is in the Eye of Beholder
Even if you are focused primarily on the downtown areas, it is very hard not to notice a sizeable number of abandoned single-family houses some would describe as old and ugly scattered all around the suburbia. Because of their current state, the potential of these houses had long gone unnoticed, but people have finally started to come with the terms that what one may consider ugly, others may find priceless, and a huge number of these houses are just a few small investments far from the prime shape. Those with the skill to uncover that true potential will eventually come out as winners of these suburban turf wars.
The Untapped Potential of Rental Properties
Old single-family houses, however, will not be the only key to the suburban kingdom. Although, in comparison, them, recently renovated homes may seem like higher-priced, and less profitable acquisitions, it should be pointed out that such homes can produce money much faster, and with less risk. A savvy investor may even find out that recently renovated homes can easily be turned into rental properties, and considering the fact that millennials, who have traditional problems with leaving the parents’ nests are very keen on renting, this may prove to be a rather beneficial observation.
The Changing Future of Office Spaces
It should be obvious by now that business word is constantly being barraged with endless waves of new startups, and although most of them do not live long enough to see past their infancy the number that remains is still pretty substantial. Most of those survivors will, at some point, start looking for an office expansion, and the task of real estate market will not only be to provide the answer to the sheer number of such requests, but also to the unique need and culture of these business newcomers.
Common Sense Decision Making
During the recent few years, it seemed that the entire real estate market was obsessed with what we call the “big data”. Although these analytics, and metrics will continue to play a huge role in real estate decision making, it should be obvious that decisions cannot be based exclusively on this type of information, so expect to see common sense and personal touch making a big reentrance. Blending the big data with this grounded decision-making philosophy will require great local knowledge, a lot of property seminars, and even more footwork, though.
Rise of the Urban Agriculture
The need for urban agriculture is as old as cities themselves, but, as of recently, this trend started to gain very strong momentum. Households are starting to grow their own food, restaurants are trying to reduce the dependency on their suppliers and offer their customers quality, fresh food, and almost everyone agrees that greening up the urban environments is a very noble and worthwhile cause. Future hot properties will need to provide an answer to this renewed interest in urban farming.
These were some of the most important trends that will influence the real estate market throughout the rest of the year. Be aware, though, they are only the most important. Surviving this relentless and ever-changing environment will require constant research and a lot of dedicated work.
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About the Author
Diana Smith is a full-time mom of two beautiful girls interested in topics related to business and technology. In her free time, she enjoys exploring new low-cost advertising opportunities.