For decades, the real estate market hasn’t really changed all that much. 50 years ago, people would list their property on the market, and someone would come along and buy it. Nowadays, the same is still true. The main buy/sell premise of real estate will always remain the same.
However, we can’t deny that there have been some subtle changes under the bonnet that alter the way people buy real estate, and what they do with it. We had the rise of property flipping, the shift to buy-to-let investments, and so on. This begs the question; what does the future hold for the real estate world?
Well, here are some of the main things I predict will happen in the not so distant future – some of which are already happening right now!
#1 Cryptocurrency/Blockchain Integration With Real Estate
Undoubtedly one of the biggest changes we’ll see is this move to the world of cryptocurrency/blockchain technology.
Everybody is talking about things like Bitcoin right now, it’s THE thing to invest in, apparently. As a consequence, the focus is firmly on blockchain technology, with many people trying to think of new and exciting ways to use it. One of those ways is to integrate it into the real estate market.
We’ve already seen things like IHT Coin come about, which aim to join together blockchain and real estate. It’s this idea that you can invest in cryptocurrency and then use it as part of a real estate transaction. I think we’ll see more and more things like this in the coming months and years.
If you’re an avid real estate investor, then it’s time you brushed up on your knowledge of cryptocurrency and blockchain technology. This is the future, and it will always benefit an investor if they get involved in something early on, rather than when it’s booming, and more people know about it.
#2 Virtual Investments
When you think about real estate, most of you will cast your minds towards houses and apartment buildings. This is the residential real estate, and it only covers a fraction of the total real estate market.
We’ve also got commercial real estate in the form of office buildings, business premises, etc. I predict we’ll see a trend move towards this idea of ‘virtual’ property investment.
No, I don’t mean we’ll start buying properties that aren’t technically real, it’s more a case of buying virtual office space. The concept here is that an investor purchases a block of offices and then puts them up for rent as virtual offices for businesses to rent.
This provides people with a business address and telephone service, but without actually moving into the office. It’s a clever idea that helps out both parties. As the owner of virtual offices, you don’t have to worry about tenants at all.
No one will really be in the buildings, so you haven’t got the hassle of communicating with them, or paying someone to manage the property.
From the other side of things, lots of small business owners can rent your virtual office space and bring benefits to their company.
Plus, more and more companies are looking for virtual space rather than a physical office thanks to new technologies allowing them to conduct business from home. It’s the future, so get involved now!
#3 Virtual Reality In Real Estate
Speaking of ‘virtual’ investments, we also have virtual reality in the palm of our hands right now. This technology is constantly being developed and taken to new heights.
I recently saw a video from Mark Zuckerberg showing Facebook’s new VR tech, which puts people in different places all over the world. Granted, this was a bit of a weird video because he went to hurricane hit Puerto Rico, but it’s the technology that fascinates me.
I think we’ll see VR used more and more in the real estate game from now on. It presents an opportunity for sellers to take potential buyers on a virtual tour of their property.
This is ideal in situations where you’re investing in something that’s far away from you. It helps provide more clarity and can save on additional costs such as transport, plane tickets, staying in a hotel overnight, etc. Plus, VR technology also helps in the design process for real estate.
So, many developers will now look to create virtual tours of future property developments. Investors can go along to events, pop on a VR headset, and be immersed in the new properties before construction has even started.
This will revolutionize the off-plan property market, with more investors being keen to buy properties before they’ve been developed, and reap the rewards afterward.
#4 Smart Properties For The Win
Finally, we will definitely see more emphasis placed on smart properties in the coming years. A smart property can be controlled and automated from just about anywhere by the person that owns or looks after it.
This presents many opportunities for real estate investors. For one, buying smart properties is now a very clever investment as they’re highly sought after, and you can get a lot of money from them. But, they’re also a dream for anyone in the buy-to-let market.
With a smart property, you can control so many things without being on the property. It leads to more efficient property management for landlords, enabling you to provide a better quality of life for your tenants. I also think the property flipping market will greatly revolve around smart technology in the next few years.
There are certainly opportunities to snap up older houses for quite low prices, renovate them with smart tech, and sell them on as modern homes. The possibilities are endless!
For me, we’re entering a very interesting point in time with regards to real estate investments. I think there are plenty of big changes on the way, and they will all influence how we make money.
There are two ways to approach these potential changes and future trends. One; you could do nothing, then end up suffering when they become the norm. Or two; you can act now, adapt to the changes before they happen, and come out on top when they’re normal.