2020 has been a tumultuous year, and this has significantly affected the real estate market. With 2021 fast approaching, the housing market remains in a tricky situation because of the massive unemployment and shelter-in-place orders due to the effects of COVID-19. However, the success of a COVID-19 vaccine may help provide a semblance of normalcy in the coming year. What are the predictions in real estate this 2021? Here are some opportunities you should look into:
In the U.S., assisted living homes will remain in demand as the number of Baby Boomers are now reaching retirement age. Many of them will prefer to stay in the comforts of an assisted facility since they can have the support and still enjoy the things that they love.
During the height of COVID-19, eCommerce saw an exponential rise due to more people maximizing the power of online shopping to address their needs. With online sellers leveraging this demand, more of them will require renting warehouses to keep their inventory. Take note that most of these online sellers would want to have these spaces in highly accessible areas to quickly and efficiently serve their customer base. From 2018, there is also a constant need for traditional warehouses that can handle service trades, including electricals, plumbing, and HVAC systems.
Even before COVID-19 hit, the gig economy has given rise to shared workspaces that allow freelancers to have a personalized area to complete their work. When the pandemic started about a year ago, most organizations sent their employees to a work-from-home status. Most of these employees opted to have a working environment to help them stay productive, and co-working spaces gave them that opportunity. With the way things are looking now, it seems that co-working spaces are here to stay. In fact, they mayl become the next frontier in real estate investing, as remote work increases. Consider this when offering a commercial space up for lease.
Gone are the days when people will buy tract housing. Nowadays, the trend is to purchase new construction homes that will allow them to customize according to their preference and budget. Cookie-cutter homes will no longer be a profitable investment by 2021. If you want to appeal to the younger market, you have to give them the opportunity to express their personality and creativity. Custom homes are among the big property opportunities for 2021, so you may want to hold off on flipping foreclosed homes for now.
For the wealthy, penthouse living will remain big in 2021. If you plan to target high-net-worth individuals, you have to provide them with enticing penthouse living offers. These properties should be located in easily accessible areas and in not-so urbanized areas that will let them feel a sense of tranquility.
Technology is big and will continue to peak in the coming years. If you want to seize a property buying opportunity, it would be a wise decision to put your money on upgrading the tech in your home. If you plan to sell your home, incorporating intelligent systems, such as home automation and AI-powered features, can help set you apart from the rest.
With numerous pharmaceutical companies announcing positive results for a COVID-19 vaccine, the hope for a better 2021 is no longer far in sight. It could be an opportunity for property investors to recover their losses from 2019 to 2020. However, any major investment should be made with caution. Study the market first before making any giant leaps.