Real estate trend 2018 depict that the real estate industry has a bright future
When considering to invest in high- profit yielding sectors, real estate is amongst the first option that occurs to the mind. Being known as one of the most steady, and profitable sectors, real estate has managed to attract potential investors.
The sector has these top five emerging real estate trend 2018 :
1. Booming urbanization, and the corporate sector
Even with short-term political upheavals, the demand for corporate, and logistic properties remain un-deterred. Focusing on city centers for building office properties, the connecting cities offer the opportunity to recreate existing inventory through high-quality construction projects in suitable locations.
2. Residential properties take it up a notch
With the proliferating global population, the demand for residential properties has risen. As the demand grows, the shortage of supply has triggered the need to create more residential places. Also looking at the fact that one out of every four Europeans are over 60, the trend for senior housing is on an up rise, particularly in US, and Europe.
3. Stable interest rates leverage demand
The European Central Bank has made a favorable decision of keeping the lending rate at 0%, and the deposit rate for banks at -0.4%. Also the non-volatility of interest rates in other countries has generated real estate demand. “The low-interest environment may be the new normal.” Ds Marcus Cieleback, Group Head of Research, PATRIZIA Immobilien AG.
4. The segment will grow upward
“In terms of manageable risk and higher profits, logistics will remain one of the best investment options in 2018. The markets want core products. So value-added investors, especially in the US and Europe, should take advantage of the opportunity to procure appropriate assets. “said Ds Marcus Cieleback, Group Head of Research, PATRIZIA Immobilien AG.
5. Search for alternatives
The property scarcities are leading to a search for investment alternatives. Centralization, and smaller location niches become economically viable. The market segment that has seen an improvement in warehousing, and logistics. “In terms of manageable risk and higher profits, logistics will remain one of the best investment options in 2018”says Cieleback
Seeing the shortage in supplies there has been a major boost in the property demand, such real estate trend 2018 are expected to dominate this industry.