Increasing Role of the Millennial
Millennial are entering the real estate markets, as they are growing up, the interest towards the market is likely to increase. This means that new niche of the clients will emerge, which makes the real estate market more robust. It may sound overly optimistic to some of the cynics out there, but the truth is that the millennials have survived the economic pressure better than the previous generation. Therefore, they are likely to spend their saving on buying the property. To put simply, the more buyers enter the property market, the lower interest rates they will have to face, this would ultimately give the much-needed boost to the industry of real estate.
Although the speculations on the question of increasing and decreasing interest rate tend to drive the buying and selling of the property to an extent, however, the very question of the interest would probably push the clients to buy the property. Moreover, the rate of increasing and decreasing interest rates continued to dominate the real estate industry in the past few years as well. In simple words, the low-interest rate influences people to buy the property as they dread the concern of the increased interest rate. So, the low and high-interest rates in the property will both contribute in making the real estate industry successful
Emphasis on Renovation of the Property
In the wake of the low-interest rates in the property industry, people have inclined towards the renovation of the existing property, which has lowered the number of houses bought by the first-time buyers due to the paucity of the homes available for buying. Some of the homeowners seem divided when it comes to taking advantage of the lowered interest rates to buy an improved house or to renovate the existing home.
However, the property market has shown the signs of increased activity in the category of small houses or property for the middle class, which is usually a first option for the majority rather than going for the dream house the first time to save their investment and saving from the loss. As a result, the category of big houses and the luxury has shown signs of lowered prices; this means that people would have more opportunities to buy the house of dreams more than ever in the year of 2017. Also now apartment video tours are used to by real estate agents to make selling process even better.
One of the real estate trends that may shift from the traditional real estate services is the emphasis on the professional real estate services. As it is another option that could help the buyers in saving the cost attached to the buying and selling of the property. It is a service that provides the real estate services without costing you additional 6% commission on the house you are interested in buying. However, the fee of a flat is charged to advertise the property and sell it in the most convenient way for you. Moreover, most of the advantages provided to the clients in traditional services are part of the deal.
The Property Risks
Despite the boom in some of the categories of the property market, the risks factors and the fears of the clients cannot be ignored either. For instance, the limited number of houses available for buying and selling could aggravate fear of people being homeless. Some of the homeowners dread the thought and process of having to buy a new house so hard, they may show reluctance to sell the house, which would directly contribute to making the real estate industry choked up. If the above-mentioned concerns are exaggerated it could prevent the scores of other property owners to delay the plans of selling property and houses. Furthermore, the local dynamics of the specific areas may negatively affect the property market.
As the competition in the property market has become fierce, the space available for building new projects is reducing over the period of time. This is why the option of renting a building or a big house to a number of families on the basis of lease has gained the attention of the real estate agents and the property owners. As the space of the building and houses can be put to better use if two-three families rent the property, it saves the energy and resources of the owners as well. In addition, the economic pressure and the population explosion can be addressed in a manageable way if the real estate industry shifts to this new trend all over the world.
Focus on the Urban Development
Even though the urban city have reached the point of saturation in many areas, however, if few of the improvements are made in the prevailing urban setup, it could become appealing and livable for scores of people. For instance, the absence of natural plants and trees could be reintroduced to enhance the environment of the urban area in addition to making them a boosting factor for the real estate industry. The more the urban spaces are made client friendly in terms of facilitating the organic way of life, the prosperous the property market may become in the future.
Declining Labor Power
The shortage of the labor force in the construction business is also contributing to aggravate the labor power decline, which makes the property industry suffer as well. According to the various reports, the decline in the labor forces has to do with the retirement of the skilled labor, shift of the people towards other skills than the construction and the growing opportunities in the energy market. To put simply, the shortage of the labor means that the construction and availability of the new houses may become less. And the tendency of the home and property owner to avoid selling the property may soar in the coming year.