How was the real estate market during the past few years? Obviously, the economic downturn and instability have contributed to a mediocre performance. Nevertheless, the market has picked up and recent developments show stakeholders look forward to more positive trends worldwide.
According to the latest industry reports coming from credible institutions, regulatory changes along with modifications in fund-structuring terms are going to play a larger role in the property sector. There will probably be a sluggish upturn in terms of real estate funds. Investors will focus more on examining property fund platforms where capital is being channeled. In addition, information will be required to meet reporting needs of investors.
Buoyant Signals in Real Estate investing
Optimistic signs are coming from property investments, development and occupational markets which cause the international real estate market to move ahead. In fact, principal markets are looking better than they were during the financial meltdown. Stakeholders are looking closely at the so-called “mega trends” which are deemed as the evolutionary factors producing long-term swings in demographics. Politics and economics are also affecting businesses including the real estate industries all over the world.
For this sector, these super trends will surely change the blueprint of demand as well as the strategic perspective of this industry. According to PricewaterhouseCoopers (PwC), many real estate professionals support the idea that these mega trends offer new opportunities for profitable evolution. These trends are not new at all. Recent expression of elderly populations, emergence of consumerism (referring to protection of rights and welfare of consumers), and disruptive technology only show that the progressive effects of such trends have been going on for some time.
More Capital for the Industry
Once again, capital is saturating the property sector after some time of drought. Well-known markets such as London, New York and Hong Kong have recovered quickly from the financial collapse have remained tough since then. However, escalating investment capital creates additional risks. Nowadays, asset managers possessing knowledge in construction and development are called upon to guide renovations for higher rental fees.
A lot of appealing assets for property investors in alternative markets go for value and remain opportunistic instead of focusing on basics. For instance, refurbished lobbies or overhaul of heating, ventilation and air-conditioning are made so buildings will attract tenants. The trend is to transform obsolete spaces to valuable assets which entail more than the standard financial reporting savvy and structuring expertise. In the same manner, companies have started hiring experts in capital-raising for real properties.
The market is being transformed slowly. Small funds are capable of attracting new capital after proving that they own exceptional investment know-how or convincing achievements. Henceforth, funds as well as placement agencies have flooded the market to hire fresh talent at different levels. Around the world, there has been keen interest on demand for real estate particularly in continents like Europe. Areas of concentration include capital in Asia and sovereign wealth funds. More and more investors realize the opportunity to acquire assets in this region at minimal costs relative to quality.
Investors’ appetite for risks has increased as their pursuit for value builds up. Therefore, many enterprises are checking out the possibility of scaling their businesses in the European Union and probable consequences of their preferences. This is among the major trends in real estate investments at this point in time. The fact is primary real estate markets are developing in Europe, the United States, Latin America, Middle East, and Asia. This bodes well for the entire real estate market and interested investors in all corners of the world.