The real estate field has always been recommended as one of the best places to invest your hard-earned money. It’s one of the most reliable investment options and is suitable for anyone willing to secure a comfortable financial future.
As with all investment options, it’s always prudent to analyze future trends and prospects before investing your money. While the real estate market is steady, it’s dynamic in nature and always subject to change.
This fact might, of course, lead to the question; what does the future of real estate look like? The future is bright. This article is an overview of the future of real estate investments, trends investors should observe and how to leverage in the near future.
Real Estate Technology
Technology has revolutionized most industries, and the real estate field has not been left behind. Real estate technology is dynamic and is getting more promising to investors. Looking ahead, we can say that the future of tech in real estate is worth keeping an eye on.
Here are a few areas investors ought to be warming up to:
- Smart Homes: A few years back, smart homes were a pipe dream to be achieved in a millennium. However, this wave is already with us. For starters, smart homes are convenient homes where the owner can control appliances and devices from anywhere in the world, as long as they’re connected to the internet. The owner is able to access these functions on their devices, such as smartphones or tablets. Smart homes allow the homeowner to control functions such as temperature, security access and lighting. Imagine coming home to a warm house during a stinging winter night. This technology also allows the user to receive notifications and home updates on their devices. For example, if you own a smart home, you can see and communicate with anyone who comes close to your smart doorbell, even when you’re not at home.
- Automation: In any business or field, automation is the best way to streamline your business workflow and processes, such as marketing and sales. Real estate automation, in a nutshell, refers to giving up manual tasks that take up much of your time, and delegating them to automated tools. This is a great way to reduce your workload and focus on more productive areas of your business tasks. Of course, you don’t have to fire all your employees and expect the machines to take up all the tasks. Some of the business tasks you can automate include rent payments, property maintenance scheduling, and financial reconciliation. You can do as little or as much automation as you want. You can start by simplifying what you’re doing.
- Blockchain Technology: Blockchain refers to a digital and decentralized ledger tracked by many entities. This ledger helps streamline most of the processes that take place during a transaction. For example, it eliminates the middleman and boosts security. In real estate, blockchain can be used as the official record for many real estate aspects. They include transaction, leasing and legal titles. This technology is set to become more popular in real estate as some tech startups are working on such platforms. Some Asian real estate markets are already benefiting from real estate blockchain.
It’s clear that tech is establishing itself as a core driver in the real estate field. Real estate tech is not stopping any time soon. Expect to see more innovations that will contribute further to the revolution in the scene.
Location Shift
For a long time, the city suburbs have been occupied by the older members of society. This is, however, is going to change.
This shift can partly be attributed to the pandemic’s after-effects. Remember how most people were confined to their homes during the lockdown period? Many companies and firms encourage their employees to work from home. Further, gyms and recreational facilities were shut down to counter the spread of the virus.
This resulted in many people moving away from the cities. Some wanted to get closer to their family and relatives, while others simply wanted a place they could breathe and move around with little or no worry. Also, the air pollution in big cities isn’t conducive for young people who are increasingly embracing remote work.
What does this mean for real estate investors? If you want to invest in residential property, smaller homes in suburban areas are going to become a lucrative option.
These areas have always been classified as family-friendly areas. This means that most homes have also been built sizeable enough to accommodate families. However, we could see a rise in demand for one or two-bedroomed condos outside the city.
Accessibility
Along with the digitization and automation of many functions, the real estate industry is also set to become more accessible. Digital platforms have resulted in more accessibility to investment vehicles. This will rise in the coming years.
Investor management platforms, like SyndicationPro, have given investors digital access to real estate syndications. More options like this are coming up each day, giving investors more options in real estate investments.
This is making it more favourable for investors who don’t want to be involved in day-to-day management activities. They invest from a distance and earn a significant income passively.
Bottom Line
The real estate industry has made many millionaires over the years. This doesn’t mean it’s all rosy. The industry is dynamic and keeps evolving. Some of the trends are expected to include technological advancement, location shift, and more accessibility to investment opportunities.
