Investing in real estate comes with a lot of risks but can also be quite beneficial. As an investor, if you’re easily able to adapt in any condition, this can contribute greatly to your success in the field. Being aware of the trending and latest developments in real estate can keep you ahead of the curve. Here are the most significant upcoming trends that may impact real estate investors.
#1. New Home Construction
It seems like new home constructions in Canada will rise once again. Kiplinger’s predicts that single-family-housing will rise 11% compared to last year. With inventory 4.3% lower than it was a year ago and home prices continuing to rise, there’s a high chance for builders to fill the gap in demand
#2. Modifying the Use of Properties
The sharing economy has had an impact on the way people work and also on the real estate market. According to the Urban Land Institute (ULI), optionality is adding a new dimension to the way that property investors – and their tenants – define the use for a particular space.
Companies such as Common, WeLive and Commonspace are putting a different spin on apartment living by offering units that combine private living space with communal areas for cooking, dining and socializing. Developers are searching for the best use of investment properties.
#3. Silencing Global Economic Growth
According to the worldwide economic forecast, the global economy is expected to grow by 3.4% this year, according to the International Monetary Fund (IMF). While this is an increase of 3.1% growth rate compared to last year, it still represents a little downgrade of the IMF’s original forecast.
#4. Rise of Drone Technology
The Federal Aviation Administration (FAA) approved the use of drones in commercial activity earlier last year. This provides great possibilities for real estate agents in terms of how they show available properties. It also expands the scope of how investors are able to vet homes, office buildings or other potential investments.
A drone video feed can allow both realtors and potential buyers to view a property from anywhere at every possible angle without seeing it in person. This helps to check for possible visible defects in the property before carrying out a deeper or physical inspection. This saves a lot of time, energy and most importantly, money.
All these are just a few trends and developments that are set to heavily influence commercial and residential real estate in Canada. They may also affect some investors more than others.
As an investor, while reviewing and analyzing your property investments and goals, understanding the upcoming trends and latest developments can really make it easier to gain better and more valuable investment opportunities which can help you succeed and move forward.