The Future Of Real Estate Is Good

Posted by jason michalak on October 21st, 2016

The real estate market is still dealing with the brunt of what happened from the last subprime crisis with one of the biggest culprits being the squeeze in inventory. The latest generation has reached the point to aspire to own a house. Cutbacks followed by the financial crisis have jeopardized the construction of single family homes to a large extent.

If we look at the future of real estate, the inventory has reduced by 9 percent in comparison to the previous year and there are fewer homes for sale in the market. Due to the shortage in inventory, housing prices rose up to 5.7 percent in 2015 and are expected to rise further by 4-5 percent in 2016.

As per multiple forecasts cited by renowned economists, housing prices will continue to rise in the near future. The real estate scenario is expected to change considerably over the next half decade if we follow the current global mega trends.

Here are some key points which substantiate paradigm shift in real estate including the global online real estate marketplace.

• Real estate property investments will grow roughly by 55 percent in 2020 as compared to 2012.

• 60 percent of the global real estate construction activity will shift to the emerging markets due to globalization and the upsurge in the economical development.

• by 2025, the count of megacities will go up from 23 to 37 with 12 of them located in the emerging economies of the world.

• Cities growing at a faster pace will provide a larger scale of risk and return opportunities in real estate investments.

• There will be greater competition to acquire prime assets due to bigger players and capital inflow in the emerging economies.

• Real estate, driven by technology and sustainability, will have more value as they will address the global problems like climate change and global warming.

• Emergence of a broader range of risks will happen and collaboration with the government to execute vast real estate projects will become more important.

Apart from the above mentioned points there will be a specific upsurge in the market of office spaces due to increase in employment opportunities and more movement of people to cities in search of employment.

More working force will also lead to greater prosperity giving the housing sector much needed shot in the arm to boom.