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What Real Estate Trends to Expect in 2015- Part 2

Posted on Friday, January 9th, 2015 at 4:32 am    

Event Risk Gets a Permanent Place:

The fact that investors move in a sequence form ‘core’ to ‘opportunistic’ is no longer new to interviewees, but the 2015 trend will see this distinction being heightened with the passage of time, as noted by the interviewees. This is because of the fact that the interviewees are disturbed by several ‘event risk’ subjects such as natural disasters, geopolitical risks and global unrest. This is also the reason why increase in investment volume in the year 2015 is mostly dependent on international investors as they are considered to be the most attractive prospect for the same, reports the survey.

More Intensity in the Technology-Real Estate Relationship:

Not a single reals estate form is exempted from technology’s exponential expansion. According to interviewees, technological disruption may be responsible for paving new business environments and tools, cycling forward as user demand source and opening new paths for business at a time when maximum traditional industries are getting sluggish. Today, technology is accelerating change in locations, demand levels and space use.

The present day norm includes strategizing, anticipating and responding to new technologies prior to them going mainstream. In an overall basis, the fear and apprehension related to technological disruption is lowering, as told by the surveyed respondents. For example, crowdfunding and e-commerce are now being viewed as adaptation challenge, especially as the retailers have become “omnichannel distributors” and the e-tailers have started opening brick-and-mortar stores.

Keeping Track of the Emerging Concerns:

There is also a dark side to the positive emerging real estate trends for 2015. Although, it is true that up-cycles yield optimism, but too much of optimism may be responsible for bad investment patterns. Nevertheless, excess leverage and overbuilding in most cycles have, in all probability, initiated momentum building by this time. The real estate industry seems to have learned lessons on self-correction and self-regulation.

The Significance of Housing:

The real estate residential trend, as observed by the interviewees, seems to be going back to the principles of demand and supply. With this major segment of economy returning to classic fundamentals, it is assumed that confidence in residential sector will continue to rise.

So, now that you have a clear picture of what the trends in real estate might be in 2015, you can make a wise investment in this industry.