3 More Real Estate Investing Projections For 2022Feb 28, 2022
It's been about 2 whole years since Covid-19 altered our daily lives. With many believing the worst is already behind us, most cities (and countries) are pushing to get back to "normal". Now as masks and vaccine passports begin to fade to a distant memory, what we consider "normal" now vs pre-pandemic will continue to shape the real estate market in the future.
1. Multifamily real estate investment will still thrive
Bluerock is being purchased by Blackstone for 3.6 BILLION. The sale includes its 30 multifamily rental properties, most of which are located in fast-growing cities like Phoenix, Florida, and even Atlanta. According to the most recent housing starts data from the Census Bureau, multifamily housing starts are maintaining pace with single-family houses across the country. The demand in the housing sector is tremendous with supply of housing options still years behind demand. If you are looking for an area of real estate to invest in, this could be your go-to.
2. Metaverse real estate could be the new future
The work from home movement is here to stay. Over these last 2 years companies have learned that they can manage large groups of their workers remotely. They've build policies and procedures and have enough history now to know what people can do without showing up to the office. Enter the metaverse - I predict that employers will allow people to continue to work from home with the expectation that they do so while in the metaoffice. There are several new players betting on the metaverse for it's potential. A renowned crypto trading platform has officially listed the brand-new MetaSpace Real Investment Trust (MREIT). Virtual real estate, after all, is just as "real as the bitcoins" that people are ready to pay for once the business opportunity arises.
3. Growth in the industrial real estate
Property used to create, manufacture, or produce goods and products, as well as logistics real estate that facilitates the transportation and storage of products and commodities, is referred to as industrial real estate. The hottest part of this market since Covid-19 hit (and I expect for the foreseeable future) will be the "last mile fulfillment" centers. Think about what happens when you hit "buy" on your phone or laptop and the package shows up at your home the next day. Warehouses that store these goods have quickly become part of the backbone of the real estate world. Other types of real estate, such as office skyscrapers, and crowd-drawing shopping centers, are more glamorous but in my opinion will continue to be outperformed by industrial real estate.
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