The commercial real estate industry is an industry that’s highly dynamic! The trends keep changing from year to year and also month to month!
The trends that were present in one year are not the same ones that will be present in the coming year! If you’re an investor and if you’re there in this industry for at least a year, you would have noticed that the trends keep changing!
Real estate players say that change is the only constant in the world of real estate and we can’t agree more!
So if you think you’ve known and realized many trends in-depth in the year 2017 and think that these trends are going to help you in the following year, this article is going to be a myth-buster for you!
While it’s always beneficial to have known the past trends in depth, it’s not going to help you at the cost of not knowing the future trends.
So forget that you can sit back and relax in the year 2018 without having to bother about the changing trends! The very term has it.
The changing trends are going to change. And you’ve got to be updated about the possible changes happening in the real estate industry.
So here are some trends of 2018 that’s going to change the trends of the year 2017. Read this blog to get an idea of how the commercial real estate industry is going to look different from how it looked in the year 2017.
Hang in tight!
1) Residential properties value to hike up!
Good news for those who own residential properties. The changing trends in the living patterns of people are probably going to fetch you great returns!
With an increase in the younger generations moving away from their parents to find jobs and start a living on their own, the demand for housing properties is going up!
Property builders especially the apartment builders and multi-family housing builders will be on a look-out for residential properties!
If you’re having a residential property, do your homework on the prices that are available in the market and see to it that you get the maximum returns!
2018 is the right time as property builders are on a voyage to put up their buildings on the best residential properties and make the most money out of it by leasing it out to the younger generation people!
Another alternative that’s available for you is to see if you can build a property yourself and get the best deals for yourself in the year 2018. Unlike 2017 which didn’t show amazing appreciations in the residential properties, the year 2018 is believed to shower profits to the owners of residential real estate properties!
Also, read about is it right time to switch from residential to commercial estate investment?
2) Good news for those who have commercial real estate properties! – The trends of co-working spaces are going to go up and so will your returns!
Having a stand-alone office and working there has become an old deal now.
The trend of working together in co-working spaces is increasing and thus if you have a commercial real estate property, you’ll have loads of buyers who are willing to put up their buildings on your property.
And this trend is increasing very rapidly. Not only that, it’s also believed to remain the same in the upcoming years as well.
So in the coming years, there are good chances that you’ll be fetching more money. This trend is not very different from the trend that was present in the year 2017.
Because commercial real estate properties are almost always in high demand but in the year 2018, especially because of a huge trend shift with regards to the co-working spaces, the demand is going to boom up even more!
3) Multi-family housing prospects to remain a strong investment in the upcoming year of 2018
Multi-family housing prospects like big apartments, flat blocks and the like had been a great investment last year.
The trends do not see any change in this regard and it’s going to remain a very strong investment in the upcoming year also!
With increasing number of nuclear families, there’s an increase in the demand for single homes and small-sized homes.
So that’s a great bait for property developers and so is this for you, if you’re owning a residential or commercial real estate property and are eyeing at selling it off!
4) The momentum of senior housing to boom in the coming years
With a large percentage of senior citizens going homeless, there’s a great demand for senior house tops! Senior house tops are housing accommodations for the old and the aged ones.
These houses are usually very small in size with a basic bathroom and kitchen space! These are built in blocks side by side and are usually made with terrace spaces!
This is a new trend that’s emerged very recently and is likely to boom the best in the year 2020, slowly starting from the year 2018!
The gradual increase with regards to the appreciation of the building can be evidently seen in these properties from the coming years, starting in 2018.
So if you’ve got a real estate property that matches the requirements of building senior housing accommodation, hold it for some more time and sell it at the best rates in the coming year of 2018 or maybe even 2019!
5) Commercial real estate loans to become even more competitive
With an increase in the number of commercial real estate loans providing companies, there has been a gradual decrease in the rate of interest on these loans in the last few years. This trend is likely to continue, not for the Feds rate increase, but for more competition in the market that helps to keep rates competitive and thus, down from historical perspective.
That’s surely a bad news for commercial real estate loans lenders, but as an investor, isn’t it a great news for you?
Not only will you have many options to finance a loan from in the year 2018, but you’ll also be able to find these loans at much competitive rates.
This is a trend that wasn’t bought to spotlight in the year of 2017 although it still existed. But it is believed to increase and brought to the spotlight in the coming year!
So it’s definitely a good news for those hunting for low-interest loans. With an increase in the number of companies financing these loans, you’ll get best deals in the coming year.
6) Private loan providers to provide best deals
With increasing number of loan providing companies, the benefit is on the side of investors who are looking out for best deals on their commercial real estate loans.
There are a couple of government companies providing these loans and then there are some private companies that are on an edge to provide private commercial real estate loans at much cheaper rates as they’re focusing on grabbing the maximum number of investors to their side in the coming year.
Again like the previous point, this trend has been into existence for a long time, but it’s going to boom up to sky-high levels only in the upcoming year.
When you’re financing a loan from a government company, there are its related pros and cons.
Pros being the security element of the loan and the cons being the multiple rounds of verification and increased legalities associated with the same.
The same formula applies to the private commercial real estate loans. It’s got its own set of pros and cons.
So it’s advisable to consult a commercial property loan broker who can help you out in reducing your options and making the best pick for you!
Because we got to agree that with an increase in the number of such agencies, there’s also an increase in the chances of you getting deceived or cheated by these companies.
So why not hire an expert who’s well experienced and knows the technical nitty-gritty of financing a loan from different companies?
Make a wise decision!
These are the major trend shifts from the year 2017 to the year 2018 as believed by the real estate experts.
But remember that this list provided is an inclusive one and not an exhaustive one. There can be hundreds of other trend shifts which can be known only after we enter into the year and experience the changes first hand.
Because most of the times, biggest trend shifts in the industry of real estate comes at the most unexpected times!
And it comes as a surprise most of the times! So there’s no defining of all trend shifts that are going to happen. It can only be waited and watched!
These are only the probable trend shifts with greatest possibilities of occurring.
Always look out for more trend shifts and stay updated on the latest trends and the changing trends happening in the world of real estate by subscribing to the newsletters and being a part of local real estate investors clubs! Having said that, wishing you a happy investing experience!