The real estate industry`s dynamism has been relentless in our contemporary world—each phase of change or innovation we experience renders remarkable and exciting opportunities for investors.
Since the last decade, we’ve experienced eye-catching transformations and trends in this sector, such as the invention of smart homes, the emergence of sustainable development, the advent of remote work, and changing consumer preferences.
Despite the many untapped potentials of the Real Estate industry, a lot of people still prefer not to delve into this industry. Those who have attempted to benefit from the industry in the past without sufficient knowledge, failed.
So, while this is not an industry where anyone can just delve into, a few individuals have successfully milked the industry consistently for years. One of those individuals is Grant Kelley, he believes there is still room for more potentials in the industry, thus in this article we will be sharing what he believes to be the future of the industry.
Let us explore critical trends and insights that are modifying the future of real estate investing. By delving into these emerging trends, we can obtain priceless insights into the paths the sector is heading towards. With this information, we can strategize how to maximize our investment potential in the market landscape.
The Unignorably Influence of Digitalization on Real Estate Investment
Joseph Schumpeter, the then-renowned Austrian economist, claimed that innovations were responsible for interrupting and resharing the business cycle, rendering previous systems disused. Real estate investment is part of this wave of creation, and we have experienced many cases where they reshaped the sector.
The current innovation wave, digitalization, is and will bring more rapid change to this industry. While many investors may return to basics in search of liquidity and risk-off investing over the next year and six months, it is sufficiently valuable to justify looking forward to the cycles ahead and not just examining the past.
The swift growth of novel technologies and critical challenges around issues, including energy and food security and climate change, implies we are already experiencing change and will continue to do so at a swift pace going forwards. Response to these changes is the primary expectation of investors.
Investors should also expect an increase in demand for data centers, with an increase in attention to the procurement of energy and increased “off-grid” green energy considerations. For instance, as energy becomes less available, planners may become more discerning about allowing the development of new data centers, which will introduce more opportunities with their respective challenges.
The fast technological evolution and infrastructure also mean investors must know about changing trends and technology redundancies.
Moreover, demand for electric automobiles will continue to increase, providing opportunities for charging stations and repurposing. Investors may search for ways to make current assets work harder in a lesser long-term growth environment.
Diversification of Real Estate Assets and Spaces
The use of space has become more flexible more than ever. For instance, there is likely growth in the number of hotels that offer office space. Additionally, there is a likelihood of maximizing asset utilization by repurposing external spaces for energy generation or communication towers, especially with the ongoing implementation of 5G technology.
While well founded in some areas, the potential urban consolidation and commercialization of residential space may also cause the growth of demand and growth in personal storage units.
Lastly, we will likely see fast innovation in ‘clean technology’ and environmental solution, providing opportunities from carbon capture for investments based on land to alternative ways of generating and storing energy. Entrepreneurs such as Grant Kelly lead this by investing in `clean technology`.
Conclusion
There’s much to be learnt about trends and insights in the real estate industry, however this article can only cover a little on this trends. Using the knowledge from this article, you can consciously make efforts to change your attitude towards investing in real estates.