Real estate has always been one of the most attractive investment offerings. In the past few years, demand from private capital for real estate investments and supporting infrastructures has increased enormously. High demand and lower mortgage rates on the lower-priced end of the real estate market was seen in the 2019 housing market that made significant gains.
Looking forward to 2020, experts predict that the trend is likely to continue. Real estate is definitely the place to be looking at since it turns serious profits for the entrepreneurs and investors. This industry will find itself at the centre of rapid economic and social change, which is transforming the built environment.
Technology will reshape the entire real estate sector, and it will have taken a greater role in the financial ecosystem, moving into the space left by banks. According to PwC Global Real Estate Leadership Team, the global stock of institutional-grade real estate will expand by more than 55% from US$29.0 trillion in 2012, to US$45.3 trillion in 2020.
Reports have also shown that the prices of the properties and homes will continue to rise this 2020 because of the competition due to the few listings coming on the market. As such, some may focus on investing on expensive and higher-profit houses than low inventories of entry-level homes.
As successful cities attract more and more people, the cost of prime urban real estate per square meter will continue to rise. Affordability will fall, leading to greater urban density and smaller apartments. Developers will become more innovative about how they design and build commercial and residential real estate, seeking to use space more efficiently. Even though the long-term economic growth is slow, it will remain sustainable.