Emerging Trends That Will Shape Real Estate in 2020
Whether you are looking to find a new home for you and your family, or if you’re looking to get into the real estate game and even become an investor, it’s important to remember that you can only be successful if you stay on top of the latest trends in the industry. Now that 2020 is well under way, aspiring homeowners, investors, and real estate professionals need to prepare for the trends that are going to shape the new year in order to make the best possible decisions to achieve their long-term goals.
All of this may sound a bit too business-y, but in reality, being as concrete and meticulous as you can will help you make your property search a breeze, stage a home for a quick sale, or invest in the most lucrative opportunities. Let’s see what 2020 has in store.
Rapid urbanization and expansion
With the rapid and continuous urbanization that is taking place across the globe, especially in emerging economies, investors and homebuyers will have more available properties to sift through than ever before. Now, even though property prices have been on the rise in the US, for example, for the past few years, this trend dictates that the average property value will grow only by 2.8% in 2020. What this means for you as an investor or a homebuyer is that you don’t have to worry about overinflated prices by the end of the year, and that you can take your time finding the best property on the market for your needs.
You can expect this trend to stifle the rise of property prices in other regions as well, especially cities that are undergoing rapid development. In these regions, property prices might start to stagnate and even fall, simply because there are more available properties than people are searching for. To stay competitive, real estate experts will have to start cutting prices, so be ready to invest.
Real estate for seniors and Gen Z-ers
Every year, millions of people are entering their silver age. What’s more, this is about the time when Gen Z-ers are entering their home-buying years, so investors and real estate agents have two new demographics they have to keep in mind. Even though the majority of homebuyers will still be the Millennials, it’s important to note that these two new demographics will make a big impact on the market.
Properties have to be developed and staged with the customer’s needs in mind if investors and real estate agents are to sell them quickly, or lease them to the best possible tenants. On the flip side, if you are becoming a senior, or even if you’re a Millennial or a Gen Z-er, you can expect to find tailor-made properties in 2020 and beyond.
The rise of sustainable real estate
One of the biggest, if not the biggest trend that will shape the real estate world in 2020 and beyond is sustainability. Governments all around the world are quickly adopting new environmental policies that govern the real estate, construction, and manufacturing industries, prompting business leaders to adopt a more environmental approach and invest in sustainable real estate.
One of the countries that has been pioneering this change is Indonesia, where professionals such as Jack Brown from Invest Islands have been focusing heavily in recent years on sustainable causes, solutions, and architecture. Now that homebuyers and governments are becoming more mindful of the environment, investing in sustainability has become a viable business model, meaning that as a buyer you will have plenty of green options, and as an investor, you will have to invest in green real estate.
The importance of tech solutions
Technology has become an essential part of business, but it has also become one of the key deciding factors for homebuyers. Investors need to focus on tech-driven solutions in order to appeal to the modern homebuyer, and they also need to leverage technology such as AI-driven data analytics to make better marketing strategies and stay one step ahead of the trends. If you’re considering buying a home this year, expect to come across smart properties with tech-driven solutions intended to bring comfort, savings, and security to your life.
New forms of real estate marketing
On the business side of things, real estate professionals need to start adopting new marketing methods that will capture the attention of the customers. Now that more and more people are using VR and AR technologies in their daily lives, it’s important to facilitate virtual home tours and viewings that will allow the homebuyers to check the property out without ever leaving their living rooms. Real estate listings need to have great visuals, and by adding VR and AR technology to the viewing process it can give buyers a better experience. This is a big convenience factor that will allow people to make better decisions, but also cut extraneous expenses for real estate agents and investors.
Wrapping up
The real estate industry is evolving with each passing year, and 2020 is going to bring some interesting changes to the sector. With these insights in mind, you can make better, calculated decisions whether you’re a buyer or a seller.