2020 turned out to be a challenging year and worn out the nerves of property owners and investors. Many people hastily decided that the resilient real estate industry was crumbling under the coronavirus burden and would be extremely difficult to recover.
However, in early 2021, houses began selling 20 days faster than usual.
Currently, more than 38% of millennials are looking for properties.
If the predictions of 2050 are right, the population will increase by 75%. The number of people who want to have their properties will also grow.
Now the real estate market is hotter than ever. Therefore, we decided to take a detailed look at the real estate industry trends to understand how the market has changed and what the future holds.
Real Estate Market and Industry Investments
Over the past few years, we have seen how the real estate market has become global and has adapted to the digital world.
All the forecasts for real estate value are impressive: $69 trillion in 2030.
On average, real estate prices in 2021 increased by 20% worldwide, which means that demand is high.
In 2021, almost anyone can become a real estate investor and receive passive income. An extensive number of crowdfunding real estate platforms, auctions, and other websites have appeared on the market, so it’s possible to buy or sell real estate without leaving home.
This year the global real estate market will grow to $2,774 billion with a cumulative annual growth rate of 3.2%. At the beginning of 2021, there was a slight increase in real estate, as the world was still reeling from the economic crisis.
Nevertheless, the 2021 equator showed 8% growth.
Berlin, London, and Paris are the best cities for real estate investments in 2021.
In 2020-2021, Canada made the highest investment in commercial properties in the United States, with massive flows of more than $14 billion.
Real Estate Market Trends
2021 has shown that the real estate industry is still resistant to crises, and every year it only takes root positions.
Next, let’s find out what business trends remained at the peak of their popularity and what news can be seen on the market.
Millennials as the Leading Buying Group
No substantial changes have occurred, and millennials remain the leading buyers of real estate in 2021 worldwide. This trend will continue in the future. Now, about 32% of millennials are saving for their real estate.
More young millennials under 28 are already trying to earn money for their real estate. In 2020 in the USA, about 6% of people under 28 bought their first property, about 23% of millennials under 29 to 38 years old.
Millennials are actively using the Internet to search for real estate. Over 93% of millennials use websites for real estate searching. Many people want to see a 3D tour before viewing the property in real-time. Millennials are actively using mobile phones and social platforms like Facebook and Twitter to communicate with agents.
In most cases, they prefer buying a property on a turnkey basis. Having a second home is preferable for people with average and below-average income.
Emerging Business Models
The real estate industry has conveniently adapted to modern life, creating new models and ways to attract and meet customer requests. For example, Amazon has created a ready-made solution – a turnkey purchase.
The turnkey system allows connecting the client and the agent and agreeing on all aspects of the transaction. The platforms also provide free service perks, such as TV installation or apps for managing a home or shopping. It’s helpful to calculate expenses and save money.
The real estate market is not limited to purchases and sales. It’s also about rental properties. In the market, there are significant players, like Booking and Airbnb providing a service without the help of an agent. If it’s crucial to find a workspace, a good idea is to turn to such platforms as WeWork.
Industry Digitalization
The new century creates new digital opportunities.
Now there is no need to have an agent to buy or rent a property. The real estate functions are doing online platforms more than successfully.
It’s clear how the generation of the 21st century is changing the culture of work and consumption. Modern millennials use social networks to find dream jobs and real estate.
They also choose the latest technologies for everyday life. For example, a smart home is in extraordinary demand among real estate technology trends in 2021.
Currently, about 42 advanced countries are implementing innovations in the real estate sector.
Australia has the leading position in 2021 among digital countries following real estate technology trends. This country is at the forefront of real estate digitalization and the introduction of modern technologies into life.
Local Market Focus
2021 began with the fact that the local market became a priority position in the real estate market because the Covid-19 pandemic tightly closed the borders and made you look around. If earlier people were striving abroad and the desire to buy or rent real estate on another continent was high, now many are trying to find a heavenly place nearby.
Investors also found certain advantages in the local market since it is familiar and understandable. Even though the suburb has become a desirable place for 51% of people worldwide, the cities could defend their popularity.
Berlin was recognized as the best pandemic-adopted city with the stable growth of investments.
Changing priorities
The last real estate business trend in 2021 is changing priorities. Now is the time to look at the data centers and suburbs for living.
Investors found that data centers are a great way to double their income after the pandemic times.
The prospects of investment and development in the data center real estate market in Europe in 2021 grew by 50% and had a record.
Many people realized that the perfect living place isn’t skyscrapers with a fantastic city view, but cozy suburban properties with several opportunities to work and relax.
Conclusion
In the modern world, the business must adapt to current trends. In 2021, it’s crucial to highlight the following 5 leading trends in the real estate market:
1. Millennials as a leading group in all areas of real estate
2. Creating new business models for the development
3. Global digitalization of the industry
4. The local market as the main post and a prominent landmark
5. Changing priorities for stable development in the industry
Many real estate companies may disappear if they don’t adapt to new trends. So, knowing and following the real estate industry trends is more vital than ever.