With 2020 being the difficult financial year it was, it is natural for anyone to believe that working on staying afloat and not starting something new is the best option. While it may be true for a lot of industries, real estate works differently. The changes in the past few years have made real estate investments potentially more profitable than they have ever been before.
Therefore, 2021 is the best time to enter the real estate market and make the most of the opportunities that will be available this year. But first, we need to know what makes real estate a profitable investment in the current scenario and how we can use it for our benefit.
Changing Employment Patterns
- With the pandemic transforming working styles across the globe, companies are planning to include the ‘work from home’ model in their long term strategies. This calls for a shift in the workplace infrastructure.
- Businesses will plan to minimize costs and real estate will become the first target to do so. This will lead to a rise in the number of properties going up in the market resulting in good investment options for new buyers.
- In addition to selling their current properties, companies will be looking to invest in smaller offices and hence present profitable deals to sellers with such properties on the market. So, whether you are a potential buyer or a seller in the real estate market, the upcoming workplace changes in 2021 are sure to impact you.
Change in Perception of Home Ownership
- While the changing mindset of people over the last few years have had them leaning towards renting properties rather than buying them, the pandemic has caused a contrasting effect.
- Since the need to be close to the workplace has been reduced for many, the wish to own a home that even though might be a bit further but is affordable has increased. These people are more than likely to move away from populated city-centric locations to more affordable suburban ones this year.
- This would open up a lot of investment options for the other spectrum of the population, the ones migrating to cities to start their careers. This change in attitude towards living specifications will increase the real estate market activity and provide good incentives to anyone looking to invest in it.
- Technology played a major role during the pandemic last year. Every operation, task, and discussion was performed through online platforms and a lot of plans and procedures had to be modified to fit the new normal.
- These changes led to the emergence of new, innovative platforms to carry out the operations that otherwise would have been performed physically, in a lot of industries. It was no different for Real Estate as well. We now have online platforms that offer easier means to carry out real estate deals, with help from experts and a much wider range of options.
- Therefore, all the physical limitations of the real estate industry will not be able to deter you from investing this year. Scouting for properties and endless meetings with brokers have been replaced by much easier alternatives. The pandemic and the work from home situation might end this year, but the improvements in real estate operations will continue to help the market grow further.
“Progress always involves risk. You can’t steal 2nd base and keep your foot on 1st.” - Fred Wilcox
So we see how 2021 comes along with new opportunities in the real estate industry. The pandemic of 2020 was able to present the real estate market with a silver lining. All the changes, adjustments in mindsets, and alternative working options have created the path for an ideal year for investment. While being apprehensive is natural, capitalizing on these opportunities at the right time is what will help you make smart business decisions and buy the property of your dreams. We at Blockrise, can help you through this process and find the best value deal for you!