This decade started off with a bang on the head of every person out there, driving them into the zone of insanity. Coronavirus has changed several aspects of the world, and the economy has been seriously affected by the sprawling issue of this pandemic. However, people have been trying to look for profitable investment options to diversify their funds for a consistent inflow of money. As the new year is here, the conditions are expected to become better to lift the market to the previous glory. Real estate hasn’t gained significantly over this period, but the industry has been putting in efforts to salvage the position. According to certain studies, the reconfiguration of institutional real estate portfolios could happen in this decade if the following five themes are followed. Here are a few real estate investment trends that are likely to set the market on a storm in 2021
Awash with Cash
Since people have been through quite a few dire straits in the past year, they have been seeking the right opportunity to make money from the market conditions. An easy, low-rate investment environment was created due to the effect of the lockdown. If this decision is to follow the same path as the history of real estate, quantitative easing will give rise to better options to yield more profits. Although these have the potential to work wonders for the investors, they may have to wait for the last-mile logistics to take action without being affected by the prevalent supply lag. Until then, it is best for the investors to allocate their funds to some other spot.
The Suburban Reinvention
The demand for alternative housing is likely to increase with the migration of people to the suburbia, and this would give rise to the single-family units. Such a system might transpire only in the US, while the outcomes could be varied in Asia and Europe since the investments are driven by national differences and culture. These factors will start playing more important roles henceforth. Even a commercial space needs productive employees to grab the attention of investors.
The Recovery Stage
Certain pieces of research have been manifesting the chances for a K-shaped recovery in real estate, leading to the rise of various alternatives like medical offices, self-storage, life sciences, data centers, single-family housing, and mobile towers. Several disruptive technologies also drive innovation in various sectors to improve opportunities in real estate. Delivery services have shifted to be in close affinity with the areas with households and offices. The hubs are also located in controlled environments with agricultural options to keep the distances shorter from the producer to the consumer. All these are aspects that can affect the current condition of real estate. Keep this recovery in mind when making investment-related decisions to bring in more money this year.