Staying ahead of the curve is essential if you’re in the real estate business. Investment trends come and go, and what might be hot today could be totally out of favor tomorrow. So how can you ensure you’re constantly investing in suitable properties? By keeping up with the latest trends, of course! Here are a few of the latest trends to keep an eye on.
Co-Living Arrangements
One of the latest trends in real estate is co-living arrangements. This trend is primarily driven by millennials looking for alternatives to traditional living arrangements. Co-living spaces are usually fully furnished apartments that offer a variety of amenities, such as gyms, pools, and social areas. In addition, they often cater to a specific lifestyle or interest, such as artists or tech professionals.
If you’re thinking about investing in this trend, it’s essential to do your research. There are many different ways to set up a co-living space, so it’s vital to find an arrangement that will appeal to your target market. For example, if you’re targeting young professionals, you’ll want to make sure your space is located near public transportation and offers amenities that these professionals will find valuable, such as a gym or rooftop deck.
Another thing to remember is that co-living spaces are usually leased by the bedroom rather than the unit, so you’ll need to factor that into your financial projections. Lastly, because co-living spaces are still a relatively new concept, it’s crucial to have a solid marketing plan to attract tenants.
The Rise of Proptech
Proptech —short for property technology—refers to the use of technology in the real estate industry . This trend has been gaining steam in recent years as more and more investors understand the potential benefits of using proptech solutions. Some popular proptech solutions include online rental platforms, 3D walkthroughs of properties, and AI-powered chatbots.
If you’re considering incorporating proptech into your real estate business, you should keep a few things in mind. First and foremost, you need to ensure that any proptech solution you implement solves a problem for your business—there’s no point in using a piece of technology just for the sake of using it. Secondly, you need to ensure that any proptech solution you implement is compatible with your existing systems—otherwise, it’ll just create headaches down the line. Lastly, don’t forget about cybersecurity—with proptech solutions comes increased risks regarding data breaches and hacking attempts.
Smart Homes
As more and more devices become connected to the internet (a phenomenon known as the Internet of Things), so too have homes—witness the rise of smart home devices like Amazon Echo and Google Home. And this trend isn’t just confined to developed countries—a recent report from China found that sales of smart home devices in China doubled between 2017 and 2018.
If you’re thinking about investing in smart homes, there are a few things you need to keep in mind. First, smart home devices rely on constant internet connectivity—so if you’re investing in an area with spotty internet coverage, it will not be a viable option. Secondly, not everyone is comfortable with having their homes constantly connected to the internet. So it’s essential to ensure that your target market is open to the idea before investing. Lastly, data security is always going, something you need to be aware of when dealing with any internet-connected device—smart homes are no exception.
Invest on Land
Lastly, there is a growing trend toward investing in land. The average land in the United States now costs $22,000 per acre . This is a relatively low-risk investment, as land value tends to rise over time and doesn’t depreciate the way homes do.
If you’re considering making this type of investment, the first thing you need to do is identify the most promising location for real estate development—this can be done by assessing population density, income levels, and job growth in an area.
Once you’ve identified a promising area for land investments, you need to conduct due diligence on any potential purchases. For example, if environmental concerns or zoning restrictions could hamper future development, these should be given high priority when conducting your research. You should also be able to maintain the natural resources within the area. For example, if your land is within a forested area, you should take care of the trees. This requires you to hire a preventative thinning timber and forest service . They can take care of your trees, which can act as a landscape for the land. Finally, don’t forget to factor in the costs of holding onto land while it appreciates over time.
As you can see, there are several factors to consider when investing in real estate. Whether you’re purchasing a single property or an entire portfolio, your success will depend on whether you do your due diligence and carefully assess the risks involved with each investment opportunity. The above tips should help get you started!
