Like many other sectors, real estate market also took a lot of blows during the COVID-19 pandemic. Many moved out of big cities and clamored for homes in the suburbs, while locked-down families craved for more space to work remotely. However, the situation has improved quite a bit now. In fact, real estate is expected to be a bellwether for the future of economic recovery and consumer demand in the country. Experienced real estate developers like Ali Ata closely track all the trends and fluctuations in the property market, in order to make proactive decisions. Ali recently closed on the purchase of a 30-unit multifamily residential building in Illinois as Chicago’s multifamily vacancy rate dropped quite a bit during the pandemic.
Keeping up with property trends is prudent for making the perfect investment decisions at the right time. For example, due to the low vacancy rates during the pandemic, it was a good time for Ali Ata to invest in multifamily residential buildings in Chicago. The demand of these properties is expected to increase in the future as the effects of the pandemic wear off. While the real estate market has undergone a roller coaster ride in the last year, the winds of change can be seen in both the side of the consumer and the developers.
Here are some of the trends that are likely to prevail in the real estate market in the coming days:
- Increased demand for a more livable space: The demand of livable space, specifically single-family rental property is increasing to a good extent. A growing number of people want to enjoy homes that have more indoor and outdoor space attached to them. During the pandemic, many people got used to using their home space for varying activities, including living, entertainment, career/job work., and so on. Many are expected to continue this approach in the future as well.
- Greater builder confidence to drive sales: Corporate developers having a strong financial backing and brand equity are likely to gain a greater market share than others. Many stressed out players have already begun divesting their assets either through development management agreements or business takeovers. There is a good chance that this trend will only become more pronounced in the coming days, and the use of technology will increase considerably in order to bring in efficiencies that shall eventually lead to better customer centricity and confidence.
- Exchange of wealth between ownership: A large exchange of wealth is expected to be witnessed in the domain, particularly in the multifamily sector. There is a magnitude of opportunities available to new multifamily investors entering the field, as there was already a shortage of affordable, quality housing in many parts of the country. A shift taking place towards facilitating more developers to build more housing in the suburbs that have multiple bedrooms is expected to be seen, in comparison to studios and one-bedroom apartments.