Real estate is one of the oldest and most lucrative fields to invest in. With shifting trends, this industry has had its ups and downs. However, in the past two years, real estate experienced a lot of growth due to increasing demands.
Whether you are looking to invest in buying a property or commercial space, you might be wondering how long will this industry stay on a rising trajectory. Therefore, if you are curious about starting/continuing investment in real estate, then here are 5 trends to look out for in 2023:
1. Prices Will Continue to Rise
In the last two years, there has been a significant increase in demand for single-family homes in the United States and this demand keeps on increasing, causing property prices to soar as well.
Thus, 2023 could be a terrific year for home sellers!
2. Smart Parking Solutions
While some might not think of parking spaces as real estate investment, this industry is one of the fastest growing ones in major cities. Privately owned parking spaces are so tempting for entrepreneurs because it is in high demand and equally lucrative.
Because of that, and just like real estate, you can find online marketplaces and applications connecting parking owners to people searching for parking spaces. Therefore, if you are looking to invest in real estate in 2023 and you have a smaller budget, you should definitely consider parking spaces.
3. Shift in Technologies
Speaking of smart parking solutions, it is worthy to mention a very important trend in 2023 and that is the shift to smart home technologies within real estate properties. In the past, having a central location with beautiful views of the city would have been a sufficient reason for someone to invest in a property. Nowadays though, integrating smart home solutions plays a very important role in increasing property value especially if it lacks a central location.
While some homeowners might be hesitant about investing in smart property technologies due to the challenging market situation, smart solutions and applications are extremely popular and will continue to be on the rise therefore it is important to consider this trend. For example, if your property requires maintenance, think about how time-consuming it is to allocate a maintenance team, meet them on your property, show them where the maintenance problem is, and wait for them to finish their work so you can leave.
An easy and simple smart solution would be to add a smart lock on unit doors giving vendors access to units through a shared code. This will save time, coordination, and the risk of you or someone losing the key and having to change the locks. This is just a small example of how smart solutions will help you out in your property management.
4. Digital House Hunting Solutions
Before the digital revolution, people used to list and sell their houses through print media or commercial physical offices. Imagine how difficult it was to make your property visible to interested buyers. However, with today’s technologies, this is history. PropTech has bridged the gap between listing and finding the perfect house and this is only the beginning.
In 2023, expect the digital hunting revelation to further improve as attention-grabbing technologies are being integrated into it. These technologies include 3D tours, virtual staging, and animated home living videos. Therefore, online listing websites will only grow in popularity in the upcoming years.
5. Potential Shrink in Individual Real Estate Investors
Another trend you might notice in 2023 is that large corporations and hedge funds are buying real estate in the US thus decreasing individual real estate investors. This trend adds a competitive edge to individual investors therefore real estate investment trusts are increasing whereby individual investors can put money and get a return on it without going through property management hassles.
Whether you are about to delve into your first real estate investment or you are expanding your real estate portfolio, you should do a careful study before jumping into anything. The upcoming market trend is challenging as there are a lot of aspects to consider. This is why it is important to take note of the above trends and keep an open eye for anything that might emerge along the way.