For centuries, real estate has been the go-to sector for many investors. But with the way things are going worldwide, the real estate market in 2019 may witness volatility. This doesn’t mean investors in real estate should expect anything but loss; the year 2019 may even present real estate investors with some unique opportunities.
Let’s look at some emerging trends that are expected to shape real estate investments this year.
Activity and politics across the globe seem to cause uncertainty and this has extended to the real estate market. This is expected to drop house prices in many parts of the developed world.
This anticipated drop in prices comes after years of low interest rates and steady growth which have already started to go in the opposite direction.
Technology in the real estate market
Real estate professionals are seeing increased use of technology in how they do business. These technologies are industry-specific, leading to improved and more transparent analytics.
2019 is expected to usher in a surge of tech firms seeking to expand their reach through the real estate market. This can be seen in the rising number of new online platforms for selling and buying homes that keep popping up. This creates an interesting opportunity for open-minded real estate investors.
Evolution of the numbers game
Growth in the real estate market may slow down, but the need for affordable housing isn’t. Any SMEs within the sector will be able to benefit from the fact that governments are still keen to awarding contracts for affordable housing and real estate investors all want a piece of this juicy pie.
But less growth in the overall market has created a challenging environment for the construction industry and according to analysts, this is expected to continue for a while. This slowdown and its effects on construction imply investors will have to look out for opportunities in emerging markets, adaptive reuse, and replacement of old buildings.
Demand for greener houses
More young people who want to invest in real estate are looking to go green with homes that are sustainably built and whose use leaves a low carbon footprint. This trend is expected to change how properties are being developed and what green features are being added to them. An increasing number of investors and building managers will have to take up green practices and make them a core part of their business operations.
The continued rise of artificial intelligence
Artificial intelligence is expected to make its mark in the real estate industry in 2019 in a variety of ways. Its use is expected to become more pronounced in building management, design, and organisation, considering the increasing popularity of smart homes.
With AI, real estate development can look forward to increased building efficiency, safety, and security. People are always going to need some form of housing, and it is up to those within the property sector to find innovative solutions to satisfying this demand. The next year will be crucial in seeing how these technologies are implemented across various aspects of home building, buying, and selling.