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5 real estate trends to keep an eye on next year

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Residential plots to rule the roost

Unlike conventional market trends, residential plots are gaining prominence amid property buyers.

Buyers prefer to buy plots for attractive returns in the mid-to-long term horizon.

This can further be justified by the fact that they are now considering upcoming smart cities, where apartment culture is yet to catch pace.

Also, for the development of these smart cities, smaller areas in the peripheries are being identified.

Industrial corridors to boost infra growth in hinterland

Cities falling along the major industrial corridors are expected to see immense growth in the coming years.

As each corridor passes through various existing industrial clusters, towns and cities, these are likely to become investment hubs.

REITs: Game Changer for Commercial Realty

With ‘tax pass through’ status for Real Estate Investment Trusts (REITs), commercial real estate is expected to be the next big thing in 2015.

As the sector is reeling through an acute funding pressure, this initiative will give a much-needed fillip to the sector.

REITs will act as the investment vehicle between investors and developers. Recently, Blackstone, American private equity fund, started the process of grouping all the property it holds in India into a Real Estate Investment Trust (REIT).

Investors back on realty Map

With FDI in construction becoming a reality, the year 2015 will see the return of real estate investors.

With no three-year lock-in period, the major hurdle for the overseas investors is removed.

Thus, now an investor can exit once the project is completed or after the complete trunk infrastructure development.

Weird wins

When choosing which homes to invest their time into selling, savvy agents look at outlying data points which can often mean big business.

For instance, have you heard of the Starbucks effect? Studies have shown that homes near a Starbucks coffee shop not only sell for more than an identical home not near a Starbucks, but they also average a 30 percent larger increase in value over a 15-year period.

Another weird fact is that homes on named streets tend to be 2 percent more valuable nationwide than numbered ones. Conversely, homes with “777” as their address sell for about 2 percent less than their estimated value.1

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