Photo Credit: Pixabay Despite the hype about new records highs for bitcoin and the public stock market, or perhaps because of it, real estate investment is expected to continue to be a big part of investing in 2018. The market is constantly evolving. Here are some of the ways that is expected to play out over the next 12 months.
Overall, property prices are expected to continue growing through 2018. Analysts anticipate that rate of growth to slow, but still be in the positive. Some destinations may have peaked, and could see some softness, though others are just now picking up after recent slow downs.
Whether it is in response to a lack of affordability and high housing and living costs, or new household starts and an aging population downsizing, CTV News says it expects condos to be some of the hottest property types ahead. These may be in stand alone condo buildings, though are also likely to be found in mixed use properties which combine residential living, entertainment, retail, and business space.
The drive for community in general is expected to be a big trend and factor over the next year. We may be using social media and online app more than ever, and spending more time online even at home. Yet, that is also increasingly starving us of real life interaction. We are social beings, and while some are more social than others, we thrive and survive on it. The more of our daily lives eaten up by working online, the more we need to replace that with reality. Expect this to show up in housing choices, and shopping habits.
Despite some media hype about retail closings in 2017, the Wall Street Journal notes that some malls have seen foot traffic up 21% over the last year, can't satisfy demand from retailers for floor space, and expect brick and mortar shopping to only grow. At least where shopping plaza owners are getting it right. To back this up, WSJ says online shopping may only actually account for 10% of retail sales, far less than believed before. It also points to the fact that some of the biggest tech companies, like Apple and Tesla are some of the most successful in brick and mortar. If property owners get the tenant mix right, and are providing emotional fulfillment with entertainment and experiences, then they will come out winners, as will their shoppers.
2018 is shaping up to be another exciting year for real estate. Investors who make sound investments in smart and growing locations, and who align their investments with asset managers who get today's consumer needs and wants should see solid, attractive returns.